Telecom Egypt, the country’s dominant landline network and 45% stake owner in Vodafone Egypt has reported that its second-quarter revenues dropped by 2.4 percent to EGP 5 billion (US$831 million).
Net profit also fell, by 15 percent to EGP 826 million (US$137 million). The company said that the relative decline in net profit can be attributed to higher repair and maintenance costs, the commencement of operations in TE’s cable business, a decline in investment income and the impact of the increase in corporation tax from 20% to 25% effective from 1 March 2011.
EBITDA was EGP 1.25 billion, delivering a margin of 48%.
Commenting on the second quarter results of 2011, Akil Beshir, Chairman of Telecom Egypt (TE), said: “While the immediate effects of the Egyptian revolution started to subside during the quarter, the prevailing operating environment has yet to normalize in Egypt. Government curfews were fully lifted in mid June, but tourism levels and business activities remain low and we continue to experience higher levels of copper cable theft than would be the case under normal conditions.”