MobiNil Posts Quarterly Loss on 3G Upgrade Costs
Published on: 1st May 2012
Note -- this news article is more than a year old.
By: Ian Mansfield
Egyptian mobile network operator MobiNil has reported a net loss for the first quarter of EGP74 million (USD12.2 million) compared to a profit of EGP23 million a year ago.
The company said the loss was due to depreciation and amortization costs associated with the ongoing upgrade of its GSM network to WCDMA based 3G services.
Revenues however rose by 3.9% to reach EGP2.53 billion and the subscriber base ended the quarter up by 7.5% at 32.6 million. Blended ARPU was dropped to EGP23.5, compared with EGP25.1 a year ago, reflecting price discounting by the country's networks.
"The results signal that Mobinil's recovery is underway and that the changes we have implemented to our business to recover from previous unfavorable conditions have started to pay off," Yves Gauthier, the company's chief executive officer, said in a statement.
The company is currently in the process of being majority bought by France Telecom.