The Egyptian Company for Mobile Services (Mobinil) will release its fourth quarter of 2011 financial results on Monday evening, according to the daily Beltone financial report.
Beltone expects Mobinil’s Q4/2011 results to reflect the impact of resorting back to the strategy which was set in Q2/2011, where the focus remained on value and margin protection, as opposed to aggressive subscriber acquisition.
The financial company estimates a decline of 2.6 per cent in Q4/2011 profits compared to Q3/2011 to reach EBITDA LE839 million and a significant deterioration year-on-year of 24 per cent versus EBITDA LE1.1 billion in Q4/2010.
"We expect EBITDA margin to witness further pressure in Q4/2011, due to an anticipated change in the accounting of the employees' compensation scheme for year-end bonuses, which we believe should be more than offset the company’s operational strategy of margin protection," Beltone reported on Monday.
Beltone expects Mobinil's revenues to grow 1 per cent quarter-on-quarter, recording LE622.6 million in Q4/2011 while seeing a 5 per cent drop year-on-year.
In October Egypt's Mobinil posted a 96 per cent fall in year-on-year third quarter net profits to LE10 million (US$1.6 million) but reversed a loss from the previous quarter.
In early February France Telecom said it had reached a preliminary accord to buy out most of Egyptian tycoon Naguib Sawiris' stake in their jointly owned telecom operator Mobinil, in a deal that will see the French group pay out about 1.5 billion euros, according to Reuters' calculations.