OrascomTelecom Hldgs OTLD Orascom Telecom - Earnings Release 3Q12

  OrascomTelecom Hldgs (OTLD) - Orascom Telecom - Earnings Release 3Q12

RNS Number : 0721R
Orascom Telecom Holdings S.A.E
14 November 2012




                                      



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Cairo/London (November 14,  2012), Orascom Telecom  Holding S.A.E. ('OTH',  or 
'the Group')  (EGX:  ORTE.CA, ORAT  EY.  LSE:  ORTEq.L, OTLD  LI),  a  leading 
provider of  mobile  telecommunications in  Africa,  Asia and  North  America, 
announces its  consolidated financial  and operating  results for  the  period 
ending September 30,  2012, demonstrating 14%  subscribers growth, 6%  revenue 
growth and EBITDA growth on an organic basis year on year (YoY).



1. 3Q12 Highlights^1



· Total subscribers surpassed85 million, an increase of 14%^2 YoY.



· Revenuesreached USD  885 million,  exhibiting an organic^3  growth of  6% 
YoY.



· EBITDA amounted  to USD 425  million, showing an  organic^3 growth of  6% 
YoY, driven by top line growth and operational excellence initiatives  despite 
the negative impact from Ramadan.



· Stable  YoY  group  EBITDA  margin  of  48.1%.  EBITDA  margins  for  the 
subsidiaries were as follows: Djezzy 58.3%, Mobilink 43.0%, banglalink  29.4%, 
and Telecel Globe 47.7%.



· Net income  before minority  interest stood  at USD  111 million,  mainly 
driven by foreign exchange  gain coupled with  healthy profit from  continuing 
operations. Net  income attributable  to equity  holders amounted  to USD  106 
million compared to a  net loss of  USD 1.5 million for  the same period  last 
year.



· Net debt^4 stood at USD 2,981 million, a slight decrease of over 1%;  Net 
Debt/EBITDA of 1.9x as at September 30, 2012.







Table 1: Group key indicators



Total subscribers  85,285  75,027   13.7%       85,285    75,027   13.7%
Revenues (USD)    884,714 925,453  (4.4%) 6% 2,718,422 2,739,867  (0.8%)
EBITDA (USD)      425,477 448,175  (5.1%) 6% 1,329,155 1,300,301    2.2%
EBITDA margin       48.1%   48.4%   (0.3)        48.9%     47.5%     1.4
Net income (USD)  110,669   9,692    n.m.      263,145   783,822 (66.4%)
EPS (USD per GDR)    0.14    0.72 (80.6%)         0.24      0.72 (66.7%)
Capex (USD)        55,184 128,032 (56.9%)      198,683   277,171 (28.3%)







1. Income Statement and Balance Sheet figures are in US dollars in accordance
with the International Financial Reporting Standards (IFRS).

2. Excluding Alfa, Mobinil, koryolink and Powercom Ltd. subscribers from last
year for comparative purposes.

3. Organic growth for Revenue and EBITDA: non-IFRS financial measures that
reflect changes in Revenue and EBITDA excluding foreign currency movements and
other factors, which includes business under liquidation, disposals, mergers
and acquisitions (Please refer to glossary of terms for the definition of
"organic growth").

4. Net debt is calculated as a sum of short term debt, long term debt, less
cash and cash equivalents.

Note: Figures for the period ending 30 September 2011 were represented to
reflect the effect of the spun-off assets.







  Ahmed   Abou   Doma,  Chief   Executive   Officer,  commented   on   the 
results:

  We are pleased to announce Orascom Telecom's third quarter results.  Our 
operations witnessed solid performance
  inlocal  currency  terms.  Nevertheless,  the  fluctuation  of   local 
currencies against the US dollar continued to adversely
 affect  our IFRS  consolidated results.  Consolidated revenue  and  group 
EBITDA recorded an organic growth of 6%,
 another testimony to strong operational excellence initiatives across all
of our operations, leading to profitable
 growth  for  yet another  quarter.  Total subscribers  surpassed  the  85 
million mark, achieving 14% growth YoY, mainly
 driven by the increase in banglalink's subscribers, up 21% YoY.



Growth in consolidated revenues resulted from strong subscriber growth and  an 
increase in data and VAS uptake  in our main subsidiaries, namely in  Algeria, 
Pakistan and Bangladesh. EBITDA increased as a result of this growth and  cost 
savings in our major subsidiaries.





2. Performance Review



2-1 Subscribers^1



Table 2: Subscriber base

Djezzy, Algeria        17,693,940 16,288,615  8.6%
Mobilink, Pakistan     36,073,988 33,415,696  8.0%
banglalink, Bangladesh 26,775,921 22,139,953 20.9%
Telecel Globe^2         4,230,847  2,825,056 49.8%
Subtotal               84,774,696 74,669,320 13.5%
Wind Canada, Canada       510,484    357,983 42.6%
Total                  85,285,180 75,027,303 13.7%

Total subscribers increased by 14% YoY exceeding 85 million subscribers at the
end of the  quarter, mainly  driven by  21% subscriber  growth in  Bangladesh. 
banglalink's  subscriber  base  is  now  nearing  27  million,  supported   by 
particularly strong gross  additions to the  network towards the  end of  this 
quarter.



In Algeria,  Djezzy  grew its  subscriber  base by  9%  YoY, as  a  result  of 
continued subscriber  acquisition and  active  retention efforts  through  the 
"Imtiyaz" loyalty program. In Pakistan, Mobilink subscribers increased 8%  YoY 
as a result of customer acquisitions coupled with lower churn compared to  the 
previous year.



Telecel Globe subscribers increased nearly 50% compared to the previous  year, 
mainly driven by strong additions in  Zimbabwe, leading to an increase of  92% 
YoY in Zimbabwe's subscriber base. In Canada, Wind Mobile grew its  subscriber 
base by 43% compared to 3Q 2011,  through its continued focus on "Value  Plus" 
attracting postpaid additions to the network.





1. For comparative purposes, the subscriber base for 3Q 2011 was  represented 
to reflect the impact of the demerger of Mobinil, koryolink and Alfa.

2. Including Zimbabwe.

2-2 Revenues

Table 3: Revenues in US dollars

GSM
Djezzy        447,390       (8.1%)                 (1.9%)
Algeria                              486,672             1,375,475 1,402,720
Mobilink,     269,415       (4.3%)             0.2%
Pakistan                             281,491               850,591   848,530
banglalink,   144,459        11.7%             8.7%
Bangladesh                           129,306               416,200   383,013
Telecel                            
Globe,                 22,555         21,340    5.7%        67,834    69,940  (3.0%)
Africa^2
Total GSM     883,819       (3.8%)                   0.2%
                                     918,809             2,710,100 2,704,203
Telecom
Services
Ring           (86.5%)   (76.7%)
                          895          6,644                 8,322    35,664
Total                                                    
Consolidated  884,714        925,453  (4.4%)     2,718,422 2,739,867  (0.8%)
Revenues



Table 4: Revenues in local currency

GSM
Djezzy, Algeria (DZD)       36.2 35.4  2.3% 106.3 101.8  4.4%
Mobilink, Pakistan (PKR)    25.5 24.4  4.5%  78.6  72.9  7.8%
banglalink, Bangladesh(BDT) 11.8  9.6 22.9%  34.2  28.0 22.1%



Revenues for the third quarter were  adversely affected by the local  currency 
devaluation against the US dollar in  Algeria and Pakistan, leading to  weaker 
US dollar performance compared  to solid profitable  growth in local  currency 
terms.



In Algeria, revenues increased by 2% in local currency terms in comparison  to 
3Q 2011, while  showing an  8% decline  in US  dollar terms.  The increase  in 
revenues is  mostly due  to a  larger  subscriber base,  as well  as  on-going 
customer retention programs. In Pakistan, revenues for 3Q 2012 increased  over 
4%  in  local  currency  terms  compared  to  the  previous  year,  while  the 
devaluation of the local currency  against the US dollar  led to a decline  of 
4%.



In Bangladesh, revenues  achieved a  significant growth  of 23%  YoY in  local 
currency terms, driven by  a larger subscriber base,  in addition to a  higher 
level of VAS and data adoption, and targeted acquisitions of the higher  value 
segment, as well as reactivation promotions.



Telecel Globe's revenues increased 6% YoY in US dollar terms, resulting from a
larger subscriber base and an increase in data revenues in Burundi.

1. 2011 comparative figures were represented to reflect the completion of the
demerger process.

2. As per IFRS rules, Telecel Globe figures have not been represented in 9M
2011, to reflect the disposal of Powercom Ltd. in 2Q 2011. It should be noted
that Telecel Globe revenues include the Central African Republic and Burundi,
as Zimbabwe is not consolidated.



2-3 ARPU

Table 5: Blended average revenue per user (USD)

Djezzy, Algeria        8.3 9.9 (16.2%)
Mobilink, Pakistan     2.4 2.7 (11.1%)
banglalink, Bangladesh 1.8 1.9  (5.3%)

Table 6: Blended average revenue per user in local currency

Djezzy, Algeria (DZD)        668.3 714.9 (6.5%)
Mobilink, Pakistan (PKR)     230.6 235.6 (2.1%)
banglalink, Bangladesh (BDT) 149.2 147.1   1.4%



The associated seasonality of Ramadan had a slowing impact on ARPU in  Algeria 
and Pakistan, leading to lower ARPU for both Djezzy and Mobilink. Moreover, it
is worth noting that ARPU in US  dollar terms was adversely affected by  local 
currency devaluation.



In  Algeria,  ARPU  decreased   by  7%  in  local   currency  terms  due   the 
aforementioned seasonality alongside an increase in the multi-SIM  phenomenon, 
in addition to the revision of the interconnect catalogue during July 2012.



In Pakistan, ARPU decreased by 2% in  local currency terms, mostly due to  the 
government-ordered shut down of all cellular networks for two days during  the 
quarter, including  the peak  day of  the Feast  holiday, in  addition to  the 
effect of floods in the southern and central regions of the country.



In Bangladesh, ARPU increased by  1% in local currency  terms, as a result  of 
higher minutes of usage (MOU) compared to the same period last year.







2-4 EBITDA^1

Table 7: EBITDA in US dollars

GSM
Djezzy        260,725       (10.0%)          (1.7%)
(Algeria)                              289,764             818,512   833,003
Mobilink      115,783        (0.6%)            6.2%
(Pakistan)                             116,453             366,572   345,217
banglalink              (4.4%)          (2.4%)
(Bangladesh)           42,433           44,401             140,577   143,960
Telecel                       
Globe                  10,756            7,009   53.5%      26,347    13,067  101.6%
(Africa)^3
Total GSM     429,697        (6.1%)                   1.3%
                                       457,627           1,352,008 1,335,247
Ring                   179.2%   (34.8%)
                      (3,526)          (1,263)             (6,492)   (9,956)
OT Holding &       (91.5%)        (34.5%)
Other^4                 (694)          (8,189)            (16,361)  (24,990)
Total         425,477        (5.1%)                   2.2%
Consolidated                           448,175           1,329,155 1,300,301



Table 8: EBITDA in local currency

GSM
Djezzy, Algeria (DZD)        21.2 20.9  1.4% 63.4 60.3  5.1%
Mobilink, Pakistan (PKR)     11.0 10.0 10.0% 33.9 29.6 14.5%
banglalink, Bangladesh (BDT)  3.5  3.2  9.4% 11.5 10.4 10.6%

Consolidated EBITDA for 3Q 2012 showed an  organic growth of 6% over the  same 
period last year as a result of operational excellence initiatives across  the 
board, leading to profitable growth.



In Algeria, EBITDA increased by 1% in local currency terms, while dropping 10%
in US dollar terms. The  improvement in local currency  EBITDA is a result  of 
cost savings and the ongoing restrictions imposed on OTA.



In Pakistan,  EBITDA  grew by  10%  in  local currency  terms,  while  showing 
stability in  US dollar  terms,  mostly on  account  of ongoing  cost  control 
measures, as well as reduced SIM card costs due to the mitigation of churn.



In Bangladesh,  EBITDA increased  by 9%  YoY in  local currency  terms,  while 
dropping 4% in US dollar terms. EBITDA growth in local currency was slowed  by 
higher subscriber  acquisition costs  YoY, as  a result  of increased  channel 
sales in anticipation  of a slowdown  during 4Q 2012  due to a  change in  the 
activation process of new connection sales from October 2012. Telecel  Globe's 
EBITDA showed  significant improvement  YoY, increasing  over 53%,  surpassing 
revenue  growth  and  boosting  profitability  as  a  result  of  cost  saving 
initiatives.



Group EBITDA margin for 3Q 2012 was  48.1%, despite a flat GSM margin for  the 
quarter, which  was negatively  impacted  by the  performance of  Algeria  and 
Bangladesh.









1. EBITDA excludes management fees which were previously treated as a cost in
each subsidiary and as a revenue for the holding company.

2. 3Q 2011 and 9M 2011 figures were represented to reflect the completion  of 
the demerger process.

3. As per IFRS rules, Telecel Globe figures were not represented in 9M  2011, 
to reflect the disposal of Powercom Ltd.

4. Other  non-operating  companies  include: CAT,  OTV,  OIH,OTI  M,  Cortex, 
EUROASIA, FPPL, ITCL, IWCPL, Moga, Oratel, Swyer, OTHC, OTASIA, OSCAR, OTESOP,
OT SARL, TMGL, TIL, TIL SA.



2-5 Net Income

Net Income attributable to  Equity Holders of the  Parent amounted to USD  106 
million for the quarter exhibiting strong  growth YoY. The improvement in  net 
income for the  quarter was  mostly driven  by strong  profit from  continuing 
operations. EPS for the three months ended September 30, 2012 amounted to  USD 
0.14/GDR.



2-6 Capex

Table 9: Capex in US dollars

Djezzy                   22.9%       37.4%
(Algeria)                 6,125      4,983             26,381   19,202
Mobilink         28,447    (47.8%)       (44.9%)
(Pakistan)                          54,503             83,510  151,525
banglalink       19,689    (69.2%)      (9.0%)
(Bangladesh)                        63,934             83,199   91,420
Telecel Globe      (80.0%)    (62.8%)
                            923      4,612              5,593   15,024
Total            55,184      (56.9%)         (28.3%)
                                   128,032            198,683  277,171
Consolidated               6.2%      13.8%   (7.6)       7.3%    10.1%   (2.8)
Capex/Revenue

Total Capex amounted to USD 55 million for 3Q 2012, decreasing by 57% YoY.  In 
Pakistan, the slowdown in capacity roll-out for the network before  proceeding 
with network modernization led to a 48% decline in Capex. In Bangladesh, Capex
decreased 69% YoY compared to  last year's intensive customer acquisition  and 
network roll-out. Capex for Telecel Globe remained low for the quarter.



2-7 Cash and Debt

Net debt declined by  over 1% in the  first nine months of  2012 to reach  USD 
2.98 billion in comparison to USD 3.02 billion as at 31 December 2011,  mainly 
due  to  increased  cash  flow   from  operations  resulting  from   increased 
profitability, and a decrease in cash  outflow on Capex, leading to Net  Debt/ 
EBITDA of 1.9x as of 30 September 2012.



3. OTH Operations

The Group operates in seven countries with favourable dynamics in Africa, Asia
and North America. It  is worth highlighting that  OTH serves a population  of 
approximately 449 million people  with an average  mobile penetration rate  of 
56%.

                                      





Note: Figures from CIA Factbook. Mobile penetration is based on September  30, 
2012 subscriber figures and market share.

3-1 Djezzy, Algeria



Table 11: Djezzy key indicators

Revenues   447,390 486,672  (8.1%)  Subscribers  17,693,940 16,288,615    8.6%
(USD 000)
Revenues      36.2    35.4    2.3%  Market            56.3%      57.7%   (1.4)
(DZD bn)                            Share^1
EBITDA     260,725 289,764 (10.0%)  ARPU (USD)^2        8.3        9.9 (16.2%)
(USD 000)
EBITDA        21.2    20.9    1.4%  ARPU (DZD)^2        668        715  (6.5%)
(DZD bn)
EBITDA       58.3%   59.5%     1.2  MOU^2               258        286  (9.8%)
Margin
Capex (USD   6,125   4,983   22.9%  Churn^2            6.8%       5.5%     1.3
m)

Orascom Telecom Algeria S.p.A ("OTA" or "the company") operates a GSM  network 
in Algeria and provides a range of prepaid and postpaid products  encompassing 
voice, data  and  multimedia,  using  the  corporate  brand  "Orascom  Telecom 
Algerie" and the dual commercial brand of "Djezzy" and "Allo". OTA is focusing
on maintaining value  through key strategic  pillars. These strategic  pillars 
are oriented  towards value  segmentation, distribution  control,  operational 
excellence, new revenue streams and assets monetization, control of regulatory
risks, and finally  retaining key  staff members  as well  as introducing  new 
talent development programs.



During the third quarter of 2012, OTA continued to face various challenges due
to actions from a number of government authorities. In particular, the Bank of
Algeria in our  view issued  an unfounded decision  in the  second quarter  of 
2010, instructing banks not to process any overseas foreign currency transfers
by OTA, leading  to very  negative effects  on OTA's  network and  reputation. 
Nevertheless, the company  maintained its  market leadership  position with  a 
market share  of  56%, controlling  the  largest distribution  across  all  48 
provinces (Wilayas) and operating the largest network with 6,836 sites by  the 
end of this quarter.



OTA launched several  promotions during Ramadan  targeting its key  customers. 
These promotions included the "Liberty Ramadan  du shour au ftour" for all  of 
Djezzy Carte's customer  base, the "50%  Bonus" for the  entire Allo  customer 
base, and a generous Ramadan option  of additional 100 minutes when  consuming 
DZD 100 or  additional 700  minutes when consuming  DZD 700  for the  postpaid 
customers. All Ramadan promotion benefits were during off-peak hours in  order 
to adjust to current network  constraints on usage capacity. Smartphones  were 
offered at a very competitive price, where handsets were sold with no  subsidy 
and at  a  low price  depending  on the  volume  purchased. The  VAS  activity 
distinguished itself on the  marketplace through the  launch of "Scoop  Dine", 
the content  service  platform of  OTA  with specific  religious  content  for 
Ramadan. Other VAS services specific to the period were "SMS boukala" and "SMS
joke". Pilgrims heading  to Mecca  were offered  competitive roaming  tariffs, 
through an agreement with  Zain, which was  also strongly communicated  during 
the period. Several events for VIP  customers and partners were organized  all 
over Algeria including a  Ramadan tent for 2,000  people in Algiers and  Oran, 
featuring well-known artists.



On the sales side, OTA continued to sell its mobile telecommunication services
through indirect channels  (distributors) and  through the  87 owned  "Djezzy" 
branded shops.  The nine  exclusive  national distributors  cover all  the  48 
Wilayas and are distributing OTA's  products through 19,000 authorized  points 
of sales. From July 5^th to July  19^th OTA launched a large campaign  devoted 
to the 50^th anniversary of Algerian independence. A film was produced and all
billboards were devoted to this campaign.



Djezzy's revenues increased by  2% YoY in local  currency terms, in line  with 
the recovery trend  seen in previous  quarters. EBITDA increased  1% in  local 
currency terms, while subscribers  reached 17.7 million,  showing a growth  of 
approximately 9% YoY.  The inability  to carry out  maintenance and  expansion 
works and to secure essential goods  and services for the network represent  a 
key source of high operational uncertainty for the months to come.



1. Market share is calculated according to our data warehouse

2. Figures for three month period.



3-2 Mobilink, Pakistan



Table 12: Mobilink key indicators

Revenues   269,415 281,491  (4.3%)  Subscribers  36,073,988 33,415,696    8.0%
(USD 000)
Revenues      25.5    24.4    4.5%  Market            30.1%      30.7%   (0.6)
(PKR bn)                            Share^1
EBITDA     115,783 116,453  (0.6%)  ARPU (USD)^2        2.4        2.7 (11.1%)
(USD 000)
EBITDA        11.0    10.0   10.0%  ARPU (PKR)^2        231        236  (2.1%)
(PKR bn)
EBITDA       43.0%   41.4%     1.6  MOU^2               212        197    7.8%
Margin
Capex (USD  28,447  54,503 (47.8%)  Churn^2            7.1%       8.8%   (1.7)
m)

Pakistan Mobile Company Limited (PMCL) operates under the brand "Mobilink" and
has established  itself as  a  market leader  amongst Pakistan's  GSM  network 
operators,  providing  prepaid  and  postpaid  voice  and  data  services   to 
individuals and corporate clients across  Pakistan. Mobilink is steadfast  and 
focused on retaining  and strengthening  its market share  to achieve  revenue 
growth, whilst continuing to reduce operational costs.



The pattern of increased industry  competitiveness continued during the  third 
quarter of  2012,  as the  industry  faced  pressure on  subscriber  base  and 
revenues due  to  seasonality. Monsoon  floods  in the  central  and  southern 
regions hit the country for the third  year in a row. All the operators  moved 
to compete  for gaining  revenue  and subscriber  share with  multiple  offers 
during the quarter. This  quarter all cellular networks  were closed in  major 
cities on 20^th August (Feast day)  and 21^st September, resulting in  revenue 
loss for all cellular operators.



During the third quarter of 2012, Mobilink also maintained its focus on voice,
data,  VAS  and  customer  acquisition   offers  along  with  brand   building 
activities. A brand campaign was launched highlighting core functional pillars
of the Mobilink  brand: network  coverage, customer  service, mobile  internet 
speed, best  rates and  unmatched  offers. Mobilink  continued to  provide  an 
unrivaled mobile  internet browsing  experience in  terms of  convenience  and 
speed. An unlimited weekly GPRS bundle was introduced to cater to the needs of
prepaid customers. The new weekly bundle  offers a blend of speed and  volume, 
allowing customers to browse the web, stream content and check emails all week
long. Another data bundle was launched in August, offering customers unlimited
browsing during Feast holiday. Earlier, a hybrid bundle promotion was launched
during Ramadan offering a bouquet of data, minutes and SMS.



Mobilink Jazz  continued  to  strengthen  its portfolio  of  voice  offers  to 
increase  customers'  engagement   and  acquisition   by  launching   multiple 
nationwide and  location  based  offers.  A 'Bonus  on  Usage'  promotion  was 
launched offering bonus minutes and SMS on a daily basis after surpassing  the 
daily threshold. Subscriber acquisition and reactivation promotions,  offering 
hybrid products  as  incentive,  continued  during the  quarter  to  grow  the 
subscriber base.



On the  VAS  side, multiple  usage  based products  were  launched,  including 
Mobitunes, Song  Dedication and  Ladies  Line products  along with  offers  on 
Cricket Updates and  Hajj Portal.  Round eight of  Jazz SMS  Khazana was  also 
launched during 3Q  2012 offering  valuable prizes to  customers by  answering 
interesting quiz questions, and was well received by Mobilink customers.





















1. Market  share, as  announced by  the  Regulator in  Pakistan is  based  on 
information disclosed by  the other operators  which use different  subscriber 
recognition policies. As of this release,  market share for September had  not 
been disclosed by the regulator. The above figure reflects market share as  of 
31 May 2012.

2. Figures for three month period.

Mobilink's revenues amounted to PKR 25 billion for the third quarter of  2012, 
an increase of 4%  YoY. While EBITDA reached  approximately PKR 11 billion,  a 
10% increase YoY, translating into an  improved EBITDA margin of 43.0%.  Capex 
declined by 48%  to USD  28 million, in  comparison to  the intensive  network 
expansion and maintenance  that took  place during 2011.  The subscriber  base 
also exhibited growth of 8%, reaching over 36 million customers.



3-3 banglalink, Bangladesh



Table 13: bangalink key indicators

Revenues    144,459 129,306   11.7%  Subscribers  26,775,921 22,139,953  20.9%
(USD 000)
Revenues       11.8     9.6   22.9%  Market            27.5%      27.2%    0.3
(BDT bn)                             Share^1
EBITDA (USD  42,433  44,401  (4.4%)  ARPU (USD)^2        1.8        1.9 (5.3%)
000)
EBITDA (BDT     3.5     3.2    9.4%  ARPU (BDT)^2        149        147   1.4%
bn)
EBITDA        29.4%   34.3%   (4.9)  MOU^2               225        214   4.8%
Margin
Capex (USD   19,689  63,934 (69.2%)  Churn^2            6.6%       4.2%    2.4
m)

Orascom Telecom  Bangladesh  ("OTB") provides  its  services under  two  brand 
names: "banglalink" and "Icon". OTB's  marketing strategy is oriented  towards 
targeting different consumer segments with  tailored products and services  to 
cater for the needs of these segments.



The 2G licenses for banglalink and 3 other operators were renewed for 15 years
effective from November 11, 2011. banglalink will incur approximately US$  256 
million for the license  renewal, of which 70.65%  has already been paid.  The 
regulator has enforced the implementation of 10 second pulse for all  packages 
including interactive  voice  responsive (IVR)  services  effective  September 
2012.



The government has envisioned auctioning 3G  licenses by the first quarter  of 
2013. According to  the Draft 3G  Licensing Guidelines, the  licenses will  be 
provided to a total  number of 5  licensees one of which  will be allotted  to 
state-owned Teletalk by default. Another  four licenses will be auctioned,  of 
them, 3 to be auctioned amongst the existing mobile operators, while 1 license
will be awarded to a possible new entrant. The government has given permission
to state  owned  operator Teletalk  for  a pilot  launch  of 3G  service.  The 
government also invited  applications for VoIP  License. The regulator  issued 
draft regulatory and  operational instruction  for an  unlicensed Wi-Fi  band. 
Until a Wi-Fi  guideline is  finalized, mobile  operators have  been asked  to 
offer Wi-Fi services only in collaboration with a local ISP.



During the third quarter  of 2012, banglalink  continued to launch  attractive 
services and offers to  the market promoting voice,  VAS and data.  banglalink 
launched a new package with data and SMS in start-up offer, loyalty  programs, 
bonus on  recharge, as  well as  a reactivation  promotion offering  lucrative 
tariffs.  Segment  specific   new  offers  have   been  introduced  for   SME, 
professionals and high value customers. banglalink partnered with bKash -  the 
largest m-commerce service provider in the country, to enable bKash wallet for
banglalink subscribers. Moreover, banglalink introduced agro news service  for 
the farmers - the biggest community of the country.



banglalink's revenues increased 23% in local currency terms, amounting to  BDT 
11.8 billion. banglalink achieved an EBITDA  of BDT 3.5 billion for the  third 
quarter of 2012, an increase of 9% in comparison to the previous year.  EBITDA 
margin decreased to 29.4%  from 34.3% in  the previous year,  mainly due to  a 
higher subscriber acquisition  cost. The  higher acquisition cost  in 3Q  2012 
resulted from the regulator's decision to implement a post-activation  process 
for new connection sales  from October 2012,  which prompted the  distribution 
channel to sell  more connections in  anticipation of the  lower sales in  the 
future.





1. Market share, as announced by the Regulator in Bangladesh is based on
information disclosed by the other operators which use different subscriber
recognition policies.

2. Figures for three month period.

3-4 Wind Mobile, Canada



Table 14: Wind Mobile key indicators^1

Subscribers  510,484 357,983 42.6%
ARPU (USD)^2    28.0   25.90  8.1%
ARPU (CAD)^2    27.9   27.10  3.0%

Globalive Wireless Management  Corporation ("The company"  or "Wind  Mobile"), 
operates its wireless business under the brand name "Wind Mobile", a  Canadian 
wireless operation jointly owned by  AAL Holdings Corporation and OTH.  During 
the third quarter  of 2012,Wind  Mobile continued its  "Value Plus"  strategy 
execution, adding  primarily  postpaid subscribers  while  carefully  managing 
prepaid economics for both voice and mobile broadband customers.



Wind Mobile crossed the 500,000  customer milestone in September becoming  the 
fastest growing  new  entrant wireless  operator  on record  in  the  Canadian 
market. The company added 53,602 subscribers during the quarter increasing its
active subscriber base to 510,484, where over 90% of net additions during  the 
quarter were postpaid subscribers.



On the commercial side, the company enjoyed a strong back to school season. A
new, vibrant media campaign  and promotional offers  were launched to  support 
the important selling season. With respect  to handsets, the strength of  the 
Samsung Galaxy SIII continuedthroughout the quarter. In addition, Wind Mobile
continued to add to its high-end Android devices with the introduction of  the 
Motorola Razr V, the Huawei Ascend P1, the HTC One-S and the BlackBerry 9320.



The company  continued  to expand  its  network  and launched  in  Barrie  and 
Woodstock during the third quarter of 2012, increasing population coverage  to 
over 13.6 million. Wind Mobile continues to focus on improving network quality
and increased sites on air to 1,270 sites.



Wind Mobile continued to grow its distribution footprint and branded points of
sale increased to 265 at the end of the quarter.









1. Wind Canada is consolidated according to equity method.

2. Figures for three month period.



3-5 Telecel Globe, Sub-Saharan Africa



Table 14: Telecel Globe key indicators

Subscribers^1                 4,230,847              2,825,056   49.8%
Revenues^2 (USD 000)   22,555     21,340    5.7%
EBITDA^2 (USD 000)    10,756  7,009   53.5%
EBITDA Margin                     47.7%                  32.8%    14.8
Capex^2 (USD m)                     0.9                    4.6 (80.0%)



Telecel Globe, a wholly owned subsidiary of Orascom Telecom Holding,  launched 
its operations in  February 2008.  It is  an international  telecommunications 
company that manages  GSM operators  in small  and medium  sized countries  in 
Sub-Saharan Africa with high growth potential. It currently manages three  GSM 
networks in Burundi, the Central African Republic and Zimbabwe.



We are currently  performing a  strategic review and  valuation assessment  of 
Telecel Globe  operations  to  identify,  examine  and  consider  a  range  of 
strategic alternatives. Those strategic options  include, but are not  limited 
to, a sale of  all or a  material part of  the Sub-Saharan African  Operations 
either in one transaction or in a series of transactions.



Telecel Globe's revenues amounted to USD  22 million for the third quarter  of 
2012, an increase of  6% YoY. EBITDA reached  approximately USD 11 million,  a 
54% increase  YoY,  translating  into  an improved  EBITDA  margin  of  47.7%. 
Subscribers increased  by  almost  50%  YoY,  driven  by  a  92%  increase  in 
Zimbabwe's subscriber base,  leading to  a combined  Telecel Globe  subscriber 
base of over 4 million by the end of the third quarter of 2012.



1. Including Zimbabwe

2. Revenue, EBITDA and Capex figures are for the Central African Republic and
Burundi, as Zimbabwe is  not consolidated. As per  IFRS, 3Q 2011 figures  have 
not been restated to reflect the disposal of Namibia in 2011.



4. Financial Statements (IFRS)

Income Statement 

Revenues                 884,714   925,453  (4%)   2,718,422   2,739,867  (1%)
Other Income               7,396     5,912            17,871      20,973
Total Expense          (466,635) (483,237)       (1,406,893) (1,460,586)
Net unusual Items              2        47             (245)          47
EBITDA^1                 425,477   448,175  (5%)   1,329,155   1,300,301    2%
Depreciation &         (183,400) (197,423)         (530,836)   (582,118)
Amortization
Impairment of            (3,297)   (1,258)           (5,290)     (3,504)
Non-Current Assets
Gain (Loss) on
Disposal of              (1,810)       478           (5,140)      58,445
Non-Current Assets
Operating Income         236,970   249,972  (5%)     787,889     773,124    2%
Financial Expense      (118,206)  (88,841)         (333,132)   (443,325)
Financial Income          20,067    19,510            55,657      60,410
Foreign Exchange Gain   71,662^2 (110,299)            15,332    (99,866)
(Loss)
Net Financing Cost      (26,477) (179,630)         (262,143)   (482,781)
Share of Profit (Loss)  (27,497)  (29,738)          (77,045)    (83,585)
of Associates
Profit Before Tax        182,996    40,604  n.m.     448,701     206,758  117%
Income Tax              (72,326)  (45,393)         (185,555)   (137,130)
Profit from Continuing   110,670   (4,789)  n.m.     263,146      69,628  n.m.
Operations
Gains or losses from
discontinued                   -  14,481^3                 -   714,193^4
operations
Profit for the Period    110,670     9,692  n.m.     263,146     783,821 (66%)
Attributable to:
Equity Holders of the    106,279   (1,538)  n.m.     249,435     752,764 (67%)
Parent^5
Earnings Per Share          0.14      0.72 (81%)        0.24        0.72 (67%)
(US$/GDR)^6
Minority Interest          4,391    11,230            13,711      31,057
Net Income               110,670     9,692  n.m.     263,146     783,821 (66%)











1. Management presentation developed from IFRS financials.

2. Mainly due to the appreciation of CAD against EGP, resulting in an
unrealized FX gain related to the financial receivable from OTHC.

3. Reflects the effect of the spun off assets.

4. On 4 January 2011, OTH sold its entire shareholding in Orascom Tunisia
Holding and Carthage Consortium through which OTH owned 50% of Orascom Telecom
Tunisia ("OTT"). The figure also includes the effect of the spun-off assets.

5. Equates to net income after minority interest.

6. Based on a weighted average for the outstanding number of GDRs of
1,049,138,124 for 3Q 2012 and 9M 2012, and 1,046,278,130 GDRs for 3Q 2011, and
1,046,136,182 GDRs for 9M 2011.



Balance Sheet



Assets
Property and Equipment (net)                         2,505,982 2,901,831
Intangible Assets                                    1,465,996 1,557,590
Other Non-Current Assets                             1,252,840 1,089,077
Total Non-Current Assets                             5,224,818 5,548,498
Cash and Cash Equivalents                            1,687,296 1,013,543
Trade Receivables                                      305,494   205,195
Other Current Assets                                 1,117,961 1,186,206
Total Current Assets                                 3,110,751 2,404,944
Total Assets                                         8,335,569 7,953,442
Equity Attributable to Equity Holders of the Company 1,965,488 1,854,630
Minority Share                                          68,606    56,729
Total Equity                                         2,034,094 1,911,359
Liabilities
Long Term Debt                                       4,141,524 3,492,164
Other Non-Current Liabilities                          217,880   255,159
Total Non-Current Liabilities                        4,359,404 3,747,323
Short Term Debt                                        526,392   543,826
Trade Payables                                         613,812   738,289
Other Current Liabilities                              801,867 1,012,645
Total Current Liabilities                            1,942,071 2,294,760
Total Liabilities                                    6,301,475 6,042,083
Total Liabilities and Shareholder's Equity           8,335,569 7,953,442
Net Debt^1                                           2,980,620 3,022,447











1. Net debt is calculated as a sum  of short term debt, long term debt,  less 
cash and cash equivalents.



Cash Flow Statement



Cash Flows from Operating Activities
Profit for the Period                                      263,146      69,629
Depreciation, Amortization & Impairment of Non-Current     536,126     585,622
Assets
Income Tax Expense                                         185,555     137,130
Net Financial Charges                                      262,143     482,781
Share of Loss (Profit) of Associates Accounted for Using    77,045      83,585
the Equity Method
Other                                                       18,659    (43,198)
Changes in Assets Carried as Working Capital             (184,721)   (393,994)
Changes in Other Liabilities Carried as Working Capital     29,675     111,200
Income Tax Paid                                          (376,370)   (146,783)
Interest Expense Paid                                     (86,105)   (182,916)
Net Cash Generated by Operating Activities                 725,153     703,056
Cash Flows from Investing Activities
Cash Outflow for Investments in Property & Equipment,
Intangible Assets, and Financial Assets & Consolidated   (325,807)   (358,155)
Subsidiaries
Proceeds from Disposal of Property & Equipment,           (47,504)      24,349
Subsidiaries and Financial Assets
Advances & Loans made to Associates & other parties      (149,350)   (126,103)
Dividends & Interest Received                                8,020      84,557
Net Cash Used in Investing Activities                    (514,641)   (375,352)
Cash Flows from Financing Activities
Proceeds from loans, banks' facilities and bonds         1,060,432     332,151
Payments for loans, banks' facilities and bonds          (649,375) (1,461,202)
Net Payments from financial liabilities                    (1,207)     (7,607)
Net Change in Cash Collateral                              121,786     (2,652)
Net Cash generated by Financing Activities                 531,636 (1,139,310)
Discontinued operations
Net cash generated by operating activities                       -      87,696
Net cash (used in) generated by investing activities             -   1,068,607
Net cash (used in) generated by financing activities             -     (5,256)
Net cash generated from discontinued operations                  -   1,151,047
Net Increase in Cash & Cash Equivalents                    742,148     339,441
Effect of Exchange Rate Changes on Cash & Cash            (68,395)    (10,828)
Equivalents
Cash & Cash Equivalents at the Beginning of the Period   1,013,543     824,087
Cash & Cash Equivalents at the End of the Period         1,687,296   1,152,700







5. Appendix



Foreign Exchange rates applied to the Financial Statements



Egyptian Pound/USD
Income Statement^1    5.9306  6.0398  6.0532   1.8   0.2
Balance Sheet^2       5.9658  6.0609  6.0989   2.2   0.6
Algerian Dinar/USD
Income Statement^1   72.5542 75.5571 77.3133   4.1   2.3
Balance Sheet^2      74.1680 79.0256 79.4242   7.1   0.5
Pakistan Rupee/USD
Income Statement^1   85.8751 91.3715 92.4284   6.4   1.2
Balance Sheet^2      87.4806 94.5800 94.8337   8.4   0.3
Bangladeshi Taka/USD
Income Statement^1   73.1028 82.3045 82.0916  12.6 (0.3)
Balance Sheet^2      75.1685 81.8150 81.6400   8.6 (0.2)
Canadian Dollar/USD
Income Statement^1    0.9778  1.0058  1.0024   2.9 (0.3)
Balance Sheet^2       1.0446  1.0166  0.9837 (5.8) (3.2)











1. Represents the average monthly exchange rate from the start of the year
until the end of the period.

2. Represents the spot exchange rate at the end of the period.

3. Appreciation / (Depreciation) of US dollars in comparison to local
currency.



Ownership structure and consolidation methods



GSM Operations
IWCPL (Pakistan)   100.00% 100.00%    Full Consolidation    Full Consolidation
Orascom Telecom    96.81%  96.81%     Full Consolidation    Full Consolidation
Algeria^1
Telecel (Africa)   100.00% 100.00%    Full Consolidation    Full Consolidation
Telecel Globe      100.00% 100.00%    Full Consolidation    Full Consolidation
OT Ventures^2      100.00% 100.00%    Full Consolidation    Full Consolidation
Non-GSM Operations
Ring               99.00%  99.00%     Full Consolidation    Full Consolidation
OTCS               100.00% 100.00%    Full Consolidation    Full Consolidation
OT ESOP            100.00% 100.00%    Full Consolidation    Full Consolidation
Moga Holding       100.00% 100.00%    Full Consolidation    Full Consolidation
Oratel             100.00% 100.00%    Full Consolidation    Full Consolidation
C.A.T.^3           50.00%  50.00%       Proportionate         Proportionate
                                        Consolidation         Consolidation
OT WIMAX           100.00% 100.00%    Full Consolidation         Divested
OT Holding         100.00% 100.00%    Full Consolidation    Full Consolidation
FPPL               100.00% 100.00%    Full Consolidation    Full Consolidation
OIH^4              100.00% 100.00%    Full Consolidation    Full Consolidation
OTFCSA             100.00% 100.00%    Full Consolidation    Full Consolidation
OT Holding         100.00% 100.00%    Full Consolidation    Full Consolidation
Canada^5
ITCL               50.00%  50.00%       Proportionate         Proportionate
                                        Consolidation         Consolidation
SAWLTD             100.00% 100.00%    Full Consolidation    Full Consolidation
OT_OSCAR           100.00% 100.00%    Full Consolidation    Full Consolidation
TMGL               100.00% 100.00%    Full Consolidation    Full Consolidation
OTO                100.00% 100.00%    Full Consolidation    Full Consolidation
Waselabank         100.00% 100.00%    Full Consolidation    Full Consolidation
CORTEX             100.00% 100.00%    Full Consolidation    Full Consolidation













1. Direct and Indirect stake through Moga Holding Ltd. and Oratel.

2. OT Ventures owns 100% of Sheba Telecom which operates under the trade name
banglalink.

3.  Direct  and  indirect  stake  through  International   Telecommunications 
Consortium Limited (ITCL).

4. OIH owns 100% of Orascom Telecom Iraq, which sold Iraqna in December 2007.

5. The holding company for OTH's Share in OTHC, which has been accounted  for 
under the equity method.



Glossary of terms

Average Revenue per User ("ARPU"):Average monthly recurrent revenue per
customer (excluding visitors roaming revenue and connection fee). This
includes airtime revenue (national and international), as well as, monthly
subscription fee, SMS, GPRS & data revenue. Quarterly ARPU is calculated as an
average of the last three months.

Capital Expenditure ("Capex"): Tangible & Intangible fixed assets additions
during the reporting period, includes work in progress, network, IT, and other
tangible and intangible fixed assets additions but excludes license fees.

Churn: Disconnection rate. This is calculated as the number of disconnections
during a month divided by the average customer base for that month.

Churn Rule:A subscriber is considered churned (removed from the subscriber
base) if he exceeds the 90 days from the end of the validity period without
recharging. It is worth noting that the validity period is a function of the
scratch denomination. In cases where scratch cards have open validity, the
subscriber is considered churned in case he has not made a single billable
event in the last 90 days (i.e. outgoing or incoming call or sms, wap
session). Open cards validity is applied for OTA, Mobilink and Banglalink so
far.

Minutes of Usage ("MOU"): Average airtime minutes per customer per month.
This includes billable national & international outgoing traffic originated by
subscribers (on-net, to land line & to other operators). Also, this includes
incoming traffic to subscribers from land line or other operators.

OTH's Market Share Calculation Method: The market share is calculated through
the data warehouse of OTH's subsidiaries. The number of SIM cards of
competitors that appeared in the call detail record of each of OTH's
subsidiaries is collected. This reflects the number of subscribers of the
competition. However, OTH deducts the number of SIM cards that did not appear
in the call detail records for the last 90 days to account for churn. The same
is applied to OTH subsidiaries. This method is used to calculate the market
shares of Djezzy. In Pakistan and Bangladesh, Market share as announced by the
Regulators is based on disclosed information by the other operators which may
use different subscriber recognition policy

Organic Growth forRevenue and EBITDA: Are non-IFRS financial measures that
reflect changes in Revenue and EBITDA excluding foreign currency movements and
other factors, such as business under liquidation, disposals, mergers and
acquisitions. We believe readers of this earnings release should consider
these measures as it is more indicative of the Group's ongoing performance.
Management uses these measures to evaluate the Group's operational results and
trends.

 Investor Relations contacts
 Email: otinvestorrelations@otelecom.com
 Website: www.orascomtelecom.com
 Tel: +202 2461 5120/21/22
 Fax: +202 2461 5055/54

























This presentation  contains  statements that  could  be construed  as  forward 
looking. These statements appear  in a number of  places in this  presentation 
and include statements regarding the intent, belief or current expectations of
the subscriber  base,  estimates  regarding future  growth  in  the  different 
business lines and the  global business, market  share, financial results  and 
other aspects of  the activity  and situation  relating to  the company.  Such 
forward looking statements are no guarantees of future performance and involve
risks and uncertainties, and actual  results may differ materially from  those 
in the forward  looking statements  as a result  of various  factors. You  are 
cautioned not to  place undue  reliance on those  forward looking  statements, 
which speak only as of the date of this presentation, which is not intended to
reflect Orascom Telecom's business or  acquisition strategy or the  occurrence 
of unanticipated events.

                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


QRTEAKFLFEFAFEF -0- Nov/14/2012 07:00 GMT
 
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