Orascom Telecom Posts Quarterly Profit on Forex Gains
Orascom Telecom Holding SAE, (ORTE) which merged with Russia’s VimpelCom Ltd. (VIP) last year, swung to quarterly profit on foreign exchange gains and as financing costs declined, beating analysts’ estimates.
Net income was $106 million in the quarter ended Sept. 30 after a loss of $1.5 million a year earlier, Cairo-based company said in a statement posted on its website. That compares with the median estimate of three analysts for a profit of $93 million, according to data compiled by Bloomberg.
“Our operations witnessed solid performance in local currency terms,” Chief Executive Officer Ahmed Abou Doma said in the statement. “Nevertheless, the fluctuation of local currencies against the dollar continued to adversely affect our international financial reporting standards consolidated results.”
Orascom Telecom this week obtained shareholder approval to gain control of Canada’s Globalive Investment Holding Corp. and change its name to Global Telecom Holding. The company has been in an ownership dispute with the Algerian government for more than two years on its 51 percent owned unit Djezzy, and a report said yesterday a new company has been formed to support the negotiations.
The company posted foreign exchange gains of $71.7 million in the quarter after loss of $110.3 million a year earlier, while net financing costs dropped to $26.5 million from $179.6 million, according to the company statement. Revenue declined 4 percent to $884.7 million.
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