Earnings watch: Emaar, MM Group, GTH, Oriental Weavers
EARNINGS WATCH- Global Telecom Holding returned to profit in 4Q2018, reporting a net profit of USD 98 mn compared to a loss of USD 136 mn during the comparable period a year earlier, the company said in a statement on its website (pdf). Revenues fell 3% year-on-year to USD 702 mn. The return to profit was mainly due to lower financial expenses and lower FX losses on the back of the revaluation of interest over the put option liability coupled with the depreciation of the currency in Pakistan and lower income tax due to the cancellation of Deodar and related tax adjustments. Total customer base grew by 4.3% year-on-year to 103.9 mn.
On a full-year basis, the company recorded a net loss of USD 249.7 mn in FY2018 compared to a net loss of USD 79.1 mn in FY2017, according to a disclosure to the EGX. GTH’s board has called for an extraordinary general assembly on 27 March to decide on the continuation of the company’s activity despite annual losses exceeding 50% of the value of shareholders’ equity, it said in a filing to the bourse (pdf). Shareholders will also vote during the meeting on the proposed EGP 11.2 bn capital increase, the same increase which saw the FRA ban majority shareholder Veon from voting on. Veon has filed for regulatory approval to take GTH private.
Emaar Misr reported a consolidated net profit of EGP 3.4 bn in FY2018, up 48% y-o-y from EGP 2.3 bn in FY2017, according to its earnings release (pdf). Revenues for the year stood at EGP 6.3 bn, up from EGP 4.5 bn the previous year.
MM Group For Industry And International Trade reported a net profit after tax of EGP 275.5 mn in FY2018, down from EGP 339.3 mn in FY2017, according to a bourse filing (pdf). The drop came despite an increase in topline sales for the year to EGP 7.6 bn, from EGP 6.1 bn in 2017.
Oriental Weavers’ 2018 net income fell to EGP 503.7 mn from EGP 683.3 mn in 2017, the company said in a filing to the bourse (pdf). Revenues came at EGP 10.4 bn in 2018 vs EGP 10.2 bn. The board decisions are available here (pdf).