Vodafone Won’t Distribute Profits in Egypt, Seeks to Cover Operator License’s Costs

Eng. Hatem Dowidar, CEO of Vodafone Egypt revealed that Vodafone Global did not distribute Vodafone Egypt’s profits of the fiscal year of 2012/2013, seeking to cover the integrated operator license costs.

Dowidar explained that Vodafone Global has a right to distribute or not distribute its profits as it owns the high share which is 55% from the total shares of the company, stressing that the three mobile phone operators don’t know exactly the value of the license integrated and prices of different services, hence the company decided to keep the profits until reaching the optimal way to make use of them.

Eng. Mohamed Al-Nawawi, CEO of  Telecom Egypt (TE)(ETAL-CA) which has 45% share of Vodafone Egypt revealed to Amwal Al Ghad in a previous exclusive that TE did not obtain Vodafone’s profits of the fiscal year for the company, explaining that the minority share does not enable to have the right for distributing profits.

The financial statements of Vodafone Egypt illustrated that the total operating profits of Vodafone within the first half of this year reached EGP1.4 billion and expenditure capitals attained around EGP800 million, while the value of total free cash flows are about EGP2 billion.

An official report issued by Information and Communication Technology (ICT) Ministry revealed that the number of mobile phone subscribers reached 97 million at the end of September.

The indexes of ICT Ministry explained that the numbers of Vodafone’s subscribers are around 41.4 million, capturing 42.2% from mobile phone market and ranked first as the most operator seizing number of subscribers.