By Rory Jones
LONDON--Telecom Egypt, the country's sole fixed line provider,
posted a 61% drop in third-quarter net profit on Wednesday, below
most analysts' forecasts, as the telecommunications company
reported lower revenue and higher operating costs.
Net profit for the three months ended Sept. 30 amounted to 251
million Egyptian pounds ($35 million), down from EGP650 million in
the year-earlier period, Telecom Egypt said in a statement to the
London Stock Exchange.
The company's latest quarterly result was below most forecasts.
Cairo-based EFG-Hermes had predicted a third-quarter net profit of
EGP675 million, while Kuwait-based NBK Capital had penciled in
EGP358 million.
Telecom Egypt said the contribution from its investments, which
include a 45%-stake in Vodafone Egypt, was EGP228 million in the
third quarter. Costs increased year-on-year by EGP338 million, or
20%, it said.
Telecom Egypt was granted a long-awaited EGP2.5 billion license
in April to offer mobile services to its customers, allowing it to
provide a full telecommunications service for the first time and
challenge the dominance of the country's three international mobile
operators: France Telecom-controlled Mobinil, a unit of U.A.E.'s
Etisalat and Vodafone Egypt.
Mobile services will be launched before the end of the year, or
early next year, Chief Executive Mohamed Elnawawy said in
August.
Write to Rory Jones at rory.jones@wsj.com
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