Thursday, March 18, 2010
Orascom Makes USD46.4 Million In Last Quarter
One other notable financial outlay in the last fiscal quarter of 2009 relating to Djezzy was the USD110 million that Orascom paid in order to allow it to appeal an Algerian tax bill, which claimed the company owes USD597 million for the period 2005-2007; the Egyptian company has argued that it was tax exempt during the dates in question. The appeals process is expected to last for at least another twelve months.
Orascom reported consolidated group revenue for the final fiscal quarter of the year of USD1.296 billion, a decline of 0.7% year-on-year, with Djezzy accounting for 34.5% of the total, or USD447.5 million. Revenue from the Algerian unit also fell compared to the previous year, down 12.1% against the USD508.9 million it generated in the last three months of 2008. Consolidated group earnings before interest, tax, depreciation and amortisation (EBITDA) meanwhile fell 18.9% y-o-y to USD495.9 million in the three-month period.
As at end-December 2009 Orascom’s total subscriber base was 92.9 million, up 19% against the 78 million it had a year earlier. Mobilink, the company’s Pakistani subsidiary, remains the largest unit by subscribers, with 30.8 million at the end of the year, while Egyptian Company for Mobile Services (MobiNil) had 25.4 million.