Telecom Egypt’s 2014 net profit drops 31.4 pct
It said net profit for the year fell to 2.03 billion Egyptian pounds ($266 million) from 2.96 billion pounds in 2013
Fixed-line monopoly Telecom Egypt on Tuesday reported a 31.4 percent slump in profits for 2014, citing several one-off and operational costs related to license fee payments and tax liabilities.
It said net profit for the year fell to 2.03 billion Egyptian pounds ($266 million) from 2.96 billion pounds in 2013.
The firm, in which the government owns an 80 percent stake, had operating revenues of 12.16 billion Egyptian pounds in 2014, up from 11.14 billion the previous year.
A delayed settlement in licence fees paid to the regulator, an increase in deferred taxes on liabilities and a larger salary bill all weighed on net profit.
Telecom Egypt said licence fees hit it to the tune of 201 million pounds, deferred tax liabilities rose 308 million Egyptian pounds and the salary bill went up by 280 million pounds.
Telecom Egypt has said it expects to receive a unified licence for mobile and landlines to open the way to offer mobile services in competition with Egypt’s three existing providers: Vodafone Egypt, Etisalat and Mobinil .
But the licence, approved by the government last year, has not yet been activated.