Eygpt's MobiNil, which is in the midst of a tussle between Orascom and France Telecom has posted a 6% drop in first-quarter profits to EGP424 million (US$75 million) - below most analysts expectations. Imputed interest amounts relative to 3G installment payments charged during the first quarter amounted to EGP 29 million and higher interest costs are the main driver for the decrease.
Revenues of EGP2.49 billion (US$445 million) was up on the EGP2.26 billion a year earlier. Capital expenditure for the first quarter reached EGP 420 million (US$75 million).
Mobinil ended the quarter with 21.179 million subscribers which represents an increase of 31% or 1.064 million net additions.
Commenting on first quarter 2009 results, Alex Shalaby, Chairman said: “Mobinil continued to grow in tough economic times and delivered on its identified growth strategy. This again confirms Mobinil’s success in building ties with its customers by providing quality services. In difficult economic conditions it is also gratifying to see Mobinil achieving on its profitability."
First quarter blended ARPU reached EGP 39 (US$6.97) with a decline of 16% over the same period last year mainly driven by the change of subscriber mix as the firm continues to penetrate lower market segments.