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Egypt's Mobinil posts Q2 net loss of $18.2 mln

Mobinil reported a second-quarter net loss as political turmoil following the toppling of President Hosni Mubarak hit tourism and other businesses.
27.07.11 | Source: Reuters

Egyptian mobile phone company Mobinil reported a second-quarter net loss as political turmoil following the toppling of President Hosni Mubarak hit tourism and other businesses.

The net loss of 108.5 million Egyptian pounds compared with a net profit of 378.7 million pounds a year earlier.

"Mobinil has been actively seeking to reduce the impact of the exceptional first quarter and to cope with the continuous unstable political and economic environment," CEO Hassan Kabbani said in the company' earnings statement on Tuesday.

Mobinil's first-quarter profit was hit hard by Egypt's political unrest, which froze business activity.

First-quarter net income tumbled 93.6 percent from a year earlier following the forced shutdown of several telecommunications services for several days during an 18-day political uprising.

Second-quarter revenue rose 3.5 percent from a year earlier to 2.6 billion pounds, which the company said was related to the low level of revenue in the first quarter, mainly due to compensation to subscribers following service interruptions.

Mobinil said its subscriber base grew 0.6 percent from the preceding quarter to 30.54 million subscribers.

"Commercial activity started to pick up after a difficult first quarter," the company said.

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