Orascom Telecom Posts Loss on Foreign Exchange CostsTamim Elyan
Orascom Telecom Holding SAE, the biggest company on Egypt’s benchmark stocks index, posted a second-quarter loss amid foreign exchange losses and financial expenses.
The company reported a net loss of $28.1 million compared with a profit of $26.5 million in the year-earlier period, it said in a statement to the Regulatory News Service. Revenues fell 3.3 percent to $903.8 million. The shares declined 0.9 percent to 4.59 Egyptian pounds at the close in Cairo, trimming the gain this year to 16 percent.
“Our operations continued to be negatively impacted by regulatory and government actions that are beyond our control and decision,” Chief Executive Officer Ahmed Abou Doma said in the statement. Results were hurt by local currency devaluations in Algeria and Pakistan, he said.
Orascom, which merged with Russia’s Vimpelcom Ltd. in 2011, said it continues to face “challenges” in Algeria, its biggest revenue generator and where it has been locked in an ownership dispute with the government over the local unit since 2010.
Foreign exchange losses were $86 million and financial expenses amounted to $126 million, the company said. Income from Algeria’s Djezzy retreated 1.5 percent to $464.2 million, it said. Subscribers in Orascom’s markets in Asia, Africa and N. America increased 4 percent to 85.9 million.