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Thursday, 22 February 2018

Earnings watch: Orange Egypt records net losses for two consecutive years

EARNINGS WATCH- Orange Egypt reported a consolidated net loss of EGP 1.65 bn in FY2017, down 35.5% y-o-y from EGP 2.55 bn the previous year, the company said in an EGX filing (pdf). Consolidated revenues for the year rose 7.5% y-o-y to EGP 12.68 bn, up from EGP 11.79 bn. The company says (pdf) it racked up two consecutive years of losses in part thanks to last year’s 600 bps interest rate hike, which drove up financing costs. Rising fuel and electricity prices, systemic inflation and the cost of importing network infrastructure after the float of the EGP also contributed to the losses, it said. The company suggests the tide is turning this year, particularly as it wins more clients clients with its 4G offering.

Orange is now also reportedly in talks with 14 local banks for an EGP 7 bn loan to consolidate its existing debt and finance its expansion plan in Egypt, unidentified sources tell Al Mal. The lending syndicate includes CIB, the National Bank of Egypt, Banque Misr, HSBC, AAIB, and QNB Al Ahli, among others.

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