Telecom Egypt Says Q3 Net Profit Up 3 %

Landline monopoly Telecom Egypt (ETEL.CA) has reported a 3 percent rise in quarterly net profit, at the top end of expectations.

The company, looking to data services to offset lower fixed-line income, said on Monday third-quarter net profit rose to EGP 633 million ($104 million), compared with a forecast for 625 million and a restated EGP 615 million in the 2011 period.

The government has an 80 percent stake in the firm.

Revenue rose 6 percent to EGP 2.48 billion, against a forecast for EGP 2.38 billion. Its EBITDA margin of 36.8 percent was below a forecast for 41 percent.

“With a healthy balance sheet and strong cash generation profile, we are well positioned and well financed to move forward against our objective of becoming a total telecoms operator as and when government licensing begins,” chief executive Mohamed El-Nawawy said.

Telecom Egypt, which has a 45 percent stake in Vodafone Egypt – one of three mobile providers in the country, has been seeking a license of its own to enter the mobile market directly.