Back to the complete issue
Thursday, 26 July 2018

EARNINGS WATCH: Eastern Company, Orange Egypt, Vodafone report results

EARNINGS WATCH- Eastern Company reports record 42.5% jump in FY2017-18 net profit to EGP 4.2 bn: The state-owned Eastern Tobacco Company reported a record 42.5% y-o-y jump in net profit after tax to EGP 4.2 bn in FY2017-18, up from EGP 2.9 bn a year before, the company said in a filing to the EGX yesterday (pdf). The jump is attributable to a 27.2% y-o-y increase in revenues, which came in at EGP 13.4 bn, up from EGP 10.5 bn in FY2016-17.

These results come despite the company’s recent hike to cigarette prices in order “to accommodate the country’s new so-called sin tax, Bloomberg notes. They are, however, “a welcome development for Eastern,” which is slated to sell an additional 4.5% stake on the EGX in October under the state’s privatization program.

Orange Egypt reported a net loss after tax to EGP 252.5 mn in FY2017-18, up from a net loss of EGP 1.1 bn in the previous year, the company said in a statement to the EGX (pdf). Revenues were up 7.92% y-o-y for the year coming in at EGP 6.61 mn, up from EGP 6.12 mn a year earlier.

Meanwhile, Vodafone Group said service revenues from Egypt grew 16.7% y-o-y in the second quarter of 2018, “driven by rising data penetration and usage,” according to the company’s earnings release (pdf). Total group revenues dropped 4.9% y-o-y to GBP 10.9 bn, despite a 9.4% y-o-y growth in service revenues, thanks to “strong local currency growth in Turkey and Egypt.“

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.