Orange Egypt’s revenues for the nine months to 30 September increased by 6.26 percent to EGP 9.35 billion compared to EGP 8. 80 billion in the same period in 2016. The mobile operator's gross margin amounted to EGP 7.15 billion compared to EGP 6.73 billion in 2016, reflecting growth of 6.12 percent. The operator said these are the first positive results of the new strategy launched by the company at the end of 2016.
It said its ambitious transformation programme has allowed it to partly offset the negative impacts of high inflation and the increase in energy costs. According to Orange, its launch of a new portfolio of plans is attracting a lot of new customers and boosting network revenues. After receiving spectrum, the company also offers a faster 4G Internet speed.
The bottom line was affected by an increase in debts, as well as an increase in interest rates of 600 basis points during the year, impacting the total debt costs. Ir also said the high increase in inflation rates led to a steady increase in the company’s operating costs, for instance the increase in the rates of fuel and electricity. Orange said the floatation of the Egyptian pound, which led to a very significant increase in the company’s costs as the basic components of the network are imported from abroad also contributed to the losses.
Source: https://www.telecompaper.com/news/orange-egypt-9-mth-revenues-grow-63-to-egp-935-bln--1217006
