Egypt, S.Arabia step up trade ties through coordination council talks    Egypt reviews progress on $200m World Bank-funded waste management hub    Egypt urges Israel to accept Gaza deal amid intensifying fighting    SCZONE showcases investment opportunities to eight Japanese companies    Egypt, ADIB explore strategic partnership in digital healthcare, investment    SCZONE, Tokyo Metropolitan Government sign MoU on green hydrogen cooperation    Egypt welcomes international efforts for peace in Ukraine    Al-Sisi, Macron reaffirm strategic partnership, coordinate on Gaza crisis    Contact Reports Strong 1H-2025 on Financing, Insurance Gains    Egypt, India's BDR Group in talks to establish biologics, cancer drug facility    AUC graduates first cohort of film industry business certificate    Egyptian pound down vs. US dollar at Monday's close – CBE    Egypt's FM, Palestinian PM visit Rafah crossing to review Gaza aid    Egypt prepares unified stance ahead of COP30 in Brazil    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt to inaugurate Grand Egyptian Museum on 1 November    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Telecom Egypt Q1 profit up 72 pct, beats forecasts
Published in Daily News Egypt on 14 - 05 - 2009

CAIRO: Telecom Egypt reported a 72 percent rise in first quarter net profit on Thursday and said it was open to spending its cash pile on acquiring a fixed and mobile telecom operator in the region.
The Egyptian fixed-line monopoly reported net profit attributable to shareholders as LE 960.5 million ($171 million) for the period and the amount attributable to minority interest as LE 1.8 million, putting net profit at LE 962.4 million.
This comfortably beat expectations of four analysts, who had forecast net income between LE 613 million and LE 762 million.
Telecom Egypt Chairman Akil Beshir told Reuters his firm had a net cash balance of LE 1.8 billion at the end of March and could use the cash for expansion if any targets met the firm s conservative criteria. Or it could raise its dividend.
We are not planning just to sit on the cash. We have to use the cash for the best interests of our shareholders. Yes, acquisitions is one (use). It is an ongoing thing. It is part of our strategy to expand, Beshir said in a telephone interview.
We always say our preference is an integrated operator, fixed and mobile, existing rather than greenfield, and in the MENA (Middle East and North Africa) region, he added.
The firm had been looking for opportunities in recent years and had identified some in the past but they had not met its criteria or had not gone ahead for other reasons, Beshir said.
We have very conservative criteria for expansion. Once we have the right opportunity we will address it. There is nothing to talk about at the moment, he said.
And in case we do have the cash and no acquisitions (are) on the horizon, then probably we will pay more dividend, he said, adding that this was the case in 2008 when Telecom Egypt increased its payout by 30 percent over a year earlier.
Solid financial footing
The firm said its operating revenues rose to LE 2.53 billion in the first quarter of 2009 from LE 2.39 billion in the same three-month period a year earlier.
Earnings before interest, tax, depreciation and amortization (EBITDA) and before provisions was LE 1.35 billion, ahead of the forecast by one analyst of LE 1.25 billion.
Beshir said Telecom Egypt was on a solid financial footing to maintain flexibility in its business despite facing an uncertain economic environment.
While voice revenues continue to experience some pressure from mobile substitution, our extensive and modern network enables us to reap the benefits of the resulting increase in mobile traffic through our wholesale revenues, which increased 11 percent year-on-year, Beshir said in a statement.
The company had previously said it had been hit by a slowdown in the broader economy caused by the global financial crisis. The firm has also said it faced competition from mobile firms as customers turn to mobiles instead of fixed-line phones.
Shrouk Diab of Beltone Financial said: We have the belief that especially in the retail segment of the voice, the revenues, that there will be a slowdown.
Telecom Egypt has an internet subsidiary TE Data and also has a minority stake in Vodafone Egypt, one of Egypt s biggest mobile operators. Beshir said this stake contributed LE 350 million to first quarter profits.
The firm expects to complete an undersea cable to Europe by the end of 2009. The cable, called TE North, travels from a site west of Alexandria to Marseille in France, and connects with an existing line from the Red Sea to the Mediterranean.
Telecom Egypt previously said it had sold around a quarter of TE North s capacity for $176 million last year. The total capital expenditure was around $150 million.


Clic here to read the story from its source.