Mobinil sees profit again in 2012 if Egypt stable

Egyptian mobile phone operator Mobinil (EMOB.CA) expects to return to profit next year if stability returns to the country after a popular uprising this year, its chairman said on Thursday.

Mobinil, which this week reported third-quarter earnings that undershot analyst forecasts, is battling with Vodafone's (VOD.L) local affiliate for top spot in the country's fiercely-competitive mobile market.

The industry has faced dual headwinds this year as mobile phone usage in the country of 80 million people reached saturation point and a popular uprising shook the economy and disrupted communication services.

Mobinil, a venture of Orascom Telecom (ORTE.CA) and France Telecom FTE.CA which sits just behind Vodafone Egypt by subscribers, is pushing into data services to boost profits.

"We will return to regular profit in 2012 if matters stabilize as they were in 2010," Chairman Alex Shalaby told the Reuters Middle East Investment Summit.

He blamed Egypt's economic turmoil for Mobinil's relatively weak performance so far this year, but also took a swipe at the government by blaming "the unbalanced competitive environment" which handed an advantage to his competitors.

"We were waiting for the responsible authorities to play a bigger role to guarantee the soundness of competition," said Shalaby, without elaborating.

The Egyptian mobile company suffered a boycott after its founder, Christian business tycoon and politician Naguib Sawiris, tweeted a cartoon of Mickey Mouse with a long beard and Minnie Mouse veiled in black in June.