CAIRO: Vodafone Egypt said on Thursday its net profit for the third quarter to end-December rose 34 percent to LE 430 million ($75 million) compared with a year earlier.
A subsidiary of Vodafone Group Plc, Vodafone Egypt also said it had increased its subscriber base to 6.125 million customers from 5.921 million at the end of September.
It s bang in line with expectations … We think it s going to be very strong this year because it s going to be a year where it has to amass subscribers as there will be a third mobile operator, Bassim Arid of CIBC brokerage said.
Vodafone Egypt is one of only two mobile operators in the country. Egypt has said it would invite bids for a third mobile license in the next few weeks. Vodafone Egypt said it is too early to say what the impact would be on its operations.
The net profit figure was after legal provisions. In the three-month period to the end of December 2004 the figure was LE 321 million. The 2005 third-quarter figure beat one analyst forecast of LE 370 million.
It said average revenue per user (ARPU) had fallen because many new subscribers were lower-spending customers and pre-pay phone users. The company predicted ARPU would fall in coming quarters.
We continue to focus on active customers, usage stimulation and revenue growth; as a result we have been able to sustain our margins despite the dilution of ARPU, Chief Executive Officer Ian Gray said in a statement.
Vodafone Egypt shares ended Thursday s session virtually unchanged at LE 106 after gaining a marginal 0.03 percent. Reuters
