Mobinil's net profit plunges 128% in Q2
Political turmoil drags Egyptian mobile operator further into the red
Egyptian mobile operator Mobinil posted a net loss of $18.2m for the second quarter of 2011, down 128% on the same period last year, when the company posted a net profit of $63.4m.
Mobinil, which has suffered as a result of political instability that saw former president Hosni Mubarak resign from office in February, said that revenues were up slightly in Q2 at $436.3bn.
This marked an increase of 3.4% compared to the same period last year. Second-quarter operating expenses rose by 5.5% from last year, to reach almost $87.2m. "Mobinil has been actively seeking to reduce the impact of the exceptional first quarter and to cope with the continuous unstable political and economic environment," Hassan Kabbani, CEO, Mobinil, said in a statement.
He added that the company had started to see "positive trends and improvements" in its results as some of the "adverse factors" that affected Q1 started to diminish.
"We focused our efforts toward reactivating our initiatives launching various offers to cope with new market situation and capture the rising demand for data services," he said.
Mobinil first felt the effects of Egypt's political crisis in Q1, when its net profit tumbled 93.6% year-on-year to $3.8m.
Speaking to CommsMEA at last month's Arab Advisors' conference in Amman, Jordan, Alex Shalaby, chairman of Mobinil, said that the first quarter "was impacted tremendously" by the political upheaval.
He added that that Mobinil had been affected "disproportionately" compared to Egypt's other mobile operators owing to problems it had faced acquiring additional phone numbers for new customers in the previous two quarters. Mobinil, which competes with Vodafone Egypt and Etisalat Misr, reached a mobile subscriber base of 30.5 million in Q2, a rise of 0.6% over the previous quarter and an increase of 16.8% over H1-2010.