Orascom Reports Losses of US$170 Million

Egypt’s Orascom Telecom has posted a net loss of USD169.53 million in the last three months of 2010 on the back of both the depreciation of the local currency against the US dollar and increased pressure in foreign markets.

The company noted that as its primary accounts are held in Egyptian pounds the appreciation of the US dollar against the local currency had ‘had a significant effect on the mark to market value of the US dollar denominated debt at Orascom Telecom Holding of approximately USD3.5 billion.’ 


For the twelve months ended 31 December 2010 Orascom posted a net profit of USD781.45 million, more than double the USD378.63 million reported for 2009, which the company attributed predominantly to gains recognised as a result of its revised agreements with France Telecom regarding the ownership of Egyptian cellco MobiNil.

In terms of turnover, in 4Q 2010 Orascom reported revenues of USD980 million, while full-year revenues totalled USD3.825 billion, up 2% year-on-year; Orascom noted that it was not including results from Orascom Telecom Tunisia, which the company agreed to sell in January 2011.


All of the group’s subsidiaries reported revenue growth bar Algerian operator Djezzy, which Orascom noted had endured ‘the persistence of an adverse operating environment.’ Earnings before interest, tax, depreciation and amortisation (EBITDA) in 4Q10 stood at USD402.24 million, while in FY2010 it was USD1.584 billion, up 4% y-o-y. 

At end-December 2010 Orascom’s consolidated subscriber base was 101.683 million, with its Pakistani unit, Mobilink, accounting for the largest number of those, some 31.794 million, up 3.2% against end-2009. MobiNil reported a wireless subscriber base of 30.225 million at the end of the year, up almost 20% against end-2009, while the largest percentage increase was reported at Telecel Globe – which comprises the group’s operations in Namibia, Zimbabwe, the Central African Republic and Burundi – where customer numbers increased by 77.8% to 3.242 million.


Bangladeshi unit Banglalink meanwhile reported a subscriber base of 19.3327 million at 31 December 2010, up almost 40% compared to the same date a year earlier, which Orascom said was the result of aggressive acquisition and strong customer retention strategies.

Commenting on the results Khaled Bichara, Orascom’s Group CEO, said: ‘The year 2010 has proven to be a year of significant milestones aiding the growth of Orascom Telecom Holding on an operational and strategic level.’

Azur Gabon Extends Billing Contract With Redknee

Redknee, a provider of billing and charging software and solutions, has received a new contract for an extended implementation of its converged billing and airtime-selling solutions by Gabon’s newest mobile operator, USAN Gabon (Azur).

Redknee says its turnkey solutions deliver a functionally rich platform that extends beyond basic rating, charging and billing models, enabling operators to differentiate their service offerings and launch creative promotions and incentives to their customers. A key feature is Redknee's Airtime Reseller, which enables voucherless, pre-paid wireless airtime top-up.

Azur is a subsidiary of Bintel, which is registered in Dubai but headquartered in Bahrain, and has a focus on emerging markets, with subsidiaries in the Central African Republic, Somaliland, Gabon and The Republic of the Congo, and it also holds a majority stake in Swiss-based firm Telesonique.

Etisalat Hits 100 Million Mark

UAE-based telecoms operator Emirates Telecommunications Corporation (Etisalat) has revealed that its subscriber base has exceeded 100 million customers across 18 markets in the Middle East, Asia and Africa, covering two billion people. The announcement follows Etisalat’s acquisition of the remaining 18% of its West African venture Atlantique Telecom (AT) it did not already own for USD75 million earlier this month.

Etisalat operates AT as part of a ten-year management contract ending in 2015; the company holds majority stakes in seven operators in Cote d’Ivoire, Benin, Burkina Faso, Gabon, Niger, Togo, and Central Africa Republic. At the same time, the UAE incumbent revealed it had filed an application with the Indian Foreign Investment Promotion Board (FIPB) in December 2009 to obtain approval to raise its 45% stake in its Indian subsidiary Etisalat DB to 50% plus one share. The company has said it is targeting majority stakes in its subsidiaries and associates for greater operational and financial synergy.

France Telecom Plans To Cut Call Rates With New System

France Telecom (Orange) intends to cut the cost of call services in most of its African markets by implementing a new system it calls ‘Cell Broadcast’, Arnauld Blondet, the director for emerging countries, announced on Tuesday.

‘We launched Cell Broadcast in Botswana under the [local] name Sesolo. With the number of people interested in that offer, we can be optimistic about trying it soon in most of our African subsidiaries,’ Blondet told news agency PANA at the presentation of the technique.

France Telecom operates in 15 African countries including Egypt, Uganda, Mauritius, Madagascar, Cameroon, Central African Republic, Niger, Cote d'Ivoire, Mali, Senegal, Guinea, Kenya and Equatorial Guinea.