Orascom Telecom has reported a fourth-quarter net loss of US$46.4 million, blaming soccer riots and a tax dispute in Algeria for weighing on operations. Revenue remained almost unchanged on the previous quarter, at US$1.296 billion. Algerian soccer fans damaged properties belonging to the company in the North African country after a World Cup qualifying game between Egypt and Algeria in November, with Orascom estimating the impact of the riots – as well as a US$596.6 million demand from Algerian tax authorities, which it is disputing – on Q4 EBITDA to be about US$55 million. A tax rate increase in Pakistan was also noted. Net income for the full year was US$318 million, 26 percent lower than 2008. Full year revenue fell 5 percent to US$5.06 billion.
The operator’s total subscriber base increased 19 percent year-on-year to just under 93 million. As well as established operations in Algeria, Pakistan, Egypt, Tunisia and Bangladesh, the fourth quarter also saw network launches in Canada and growth in North Korea. Recently the subject of criticism, its Canadian venture – Wind Mobile – had 5,000 subscribers at the end of 2009 (by which time the network had only been commercially launched for two weeks). Orascom’s high-profile move into North Korea, claimed to be “the first full fledged operator in the DPRK to offer state of the art mobile services at attractive prices,” had almost 92,000 subscribers by the end of December. Network capex in the country for 2009 was US$27 milllion and there are now 153 on air base stations covering capital city Pyongyang as well as six other cities and eight highways. On a more general note, in a statement the company’s executive chairman Naguib Sawiris (pictured) also reiterated his belief that “in the coming years the telecom market is going to witness massive consolidation.”
Comments