Orascom Telecom posts $23m loss in Q2
Currency fluctuations and weakened US dollar dent earnings
Cairo-based telecom operator, Orascom Telecom, posted a net loss of $23m for the second quarter of the year. This marked a decline of 171% in net income compared to the same period last year.
The telco, which is majority owned by Russia's VimpelCom, attributed the decline mainly to the adverse impact of foreign exchange losses of $86m and financial expenses of $126m.
The telco posted revenues of $903.7m for the second quarter of the year, a decline of 3.3% compared to the same period in 2012. When excluding foreign currency movements and other factors, the telco said that revenues for the quarter grew by about 1% year-on-year.
Net debt stood at $2.5bn, decreasing 7% compared to the fourth quarter of 2012.
Total subscribers increased 4%, year on year, to about 86m by the end of the second quarter of 2013.
Ahmed Abou Doma, CEO, Orascom Telecom, said: "Our operations continued to be negatively impacted by regulatory and government actions that are beyond our control and decisions. Our revenues stood at $904m for the quarter. This represents an organic growth of 1% compared to last year, in spite of the on-going ban in Algeria, the slowdown in Bangladesh due to the application of the regulatory directives regarding suspected VoIP customers and major power blackouts in Pakistan."
Doma said that subscriber growth was driven by gains in Pakistan and Bangladesh.
Orascom Telecom has operations in Pakistan, Bangladesh, Algeria, Sub Saharan Africa and Canada.