CAIRO: Egyptian mobile phone firm Mobinil said on Sunday its net income fell about 38 percent in the fourth quarter of 2010, hit after fierce competition forced it to keep prices low and spend more on promotions.
But the firm said it added 1.824 million mobile phone subscribers in the quarter, bringing its total to 30.225 million, and potentially helping it stay ahead of its main rival, the local unit of Vodafone.
Mobinil’s revenues were little changed at about LE 2.8 billion ($476 million) in the fourth quarter. Revenues from its mobile phone business dipped about 5 percent.
"Revenue decline is the result of general market trends coupled with an intense competitive environment (tariff inelasticity and aggressive promotions) leading to ARPU (average revenue per user) dilution," Mobinil said in a statement.
Earnings before interest, tax, depreciation and amortization fell to LE 1.1 billion from LE 1.3 billion.
The firm said its net income after taxes and minority interests was LE 347.4 million, compared with LE 558.9 million in the same quarter a year earlier.
Anti-government protests have brought much of Egypt’s economy to a standstill for nearly three weeks until President Hosni Mubarak resigned on Friday.
Mobinil’s results did not reflect any of the effects of the protests, which began on Jan. 25.
