First Quarter 2009 Earnings Release: The Egyptian Company For Mobile Services (Mobinil)

The Egyptian Company for Mobile Services [Mobinil]
First Quarter 2009 Earnings Release

Mobinil continues to lead mobile telecommunications in the Egyptian market with 21.179 million subscribers which represents an increase of 31%; 1.064 million net additions; revenue growth of 10%; EBITDA growth of 21% and consolidated net income reached EGP 424 million.
Cairo: April 29th, 2009 | The Egyptian Company for Mobile Services (Mobinil) announced its first quarter
2009 consolidated results. The reported figures reflect: 21.179 million Subscribers, an increase of 31% over the same period last year. Subscribers additions reached 1.064 million subscribers. Net revenues reached EGP 2,490 million representing an increase of 10% over the same period last year. EBITDA reached EGP 1,215 million representing an increase of 21% over the same period last year. Net income reached EGP 424 million.
Commenting on first quarter 2009 results, Alex Shalaby, Chairman said:

Mobinil continued to grow in tough economic times and delivered on its identified growth strategy. This again confirms Mobinils success in building ties with its customers by providing quality services. In difficult economic conditions it is also gratifying to see Mobinil achieving on its profitability."
Commenting on first quarter 2009 results, Hassan Kabbani, CEO said:

I am pleased to announce the continuation of our excellent performance, and delivering on our objectives, especially in a very challenging global economical environment; Mobinil is maintaining its market leadership by offering innovative services and competitive offers. We will pursue our aggressive investment plan of 2009, continue our 3G rollout and to provide the best possible quality of mobile telecommunication service to the Egyptian market. The reported first quarter net revenues reached EGP 2,490 million representing a growth of 10% over the same period last year. First quarter blended ARPU reached EGP 39 with a decline of 16% over the same period last year mainly driven by the change of subscriber mix as we continue to penetrate lower market segments. EBITDA for first quarter reached EGP 1,215 million representing an increase of 21% over the same period last year and reflecting an EBITDA margin of 48.8%.This EBITDA includes reversals of provisions amounting to 58 MEGP. This EBITDA margin is also improved by the higher gross margin, and our cost prudence measures. Net Profit for first quarter reached EGP 424 million representing a decrease of 6% over the same period last year. Imputed interest amounts relative to 3G instalment payments charged during the first quarter amounted to EGP 29 million and higher interest costs are the main driver for the decrease. Capital expenditure for the first quarter reached EGP 420 million.
The Egyptian Company for Mobile Services (Mobinil) Press Release/ 1Q 2009 Earnings Release
Page 1 of 7
The Egyptian Company for Mobile Services [Mobinil] Key performance highlights for first quarter 2009
123 4

Clo s ing Ba s e (KS ub ) Co mme rcia l KP Is
1
1Q 20 0 9 21,17 9 20,520 -8.6% 659 39 32 659
1Q 20 0 8 16 ,16 1 15,606 -6.3% 555 47 36 15,0 17 14,462 277 44 291 49 1Q 20 0 8 2,26 1 30 20 38 52 555
Gro wth 31% 31% 19%
Postpaid (KSub) Prepaid (KSub) Churn rate
36% 19%
Postpaid (KSub) Prepaid (KSub)
Active Ba s e (KS ub )
20 ,325 19,666
35% 36%
Postpaid ARPU Prepaid ARPU
Ble nde d ARP U
212 38 44
- 16 % -10% -23%
Global without visitor Roaming Postpaid ARPU "Annual Rolling" Prepaid ARPU "Annual Rolling" Fina ncia l KP Is Ble nde d ARP U "Annua l Ro lling"
-14%
248 42 1Q 20 0 9 2,4 9 0 34 18 35
- 14 % -15% -8%
Global without visitor roaming "Annual Rolling" Glo b a l Re ve nue "ME GP "
4
-14% Gro wth 10 % 12%
Connection fees Service Revenue E BIT DA
Handset & others Roaming Revenue EBITDA % Income before tax O p e ra tio na l KP Is T o ta l numb e r o f s ite s T o ta l numb e r o f s witche s & Ga te wa ys
1 2
2,344 94 1,215 567 1Q 20 0 9 3,8 9 9 35 4 24
2,080 131 1,0 0 4 550 1Q 20 0 8 3,4 0 5 29 4 51
-10% -28% 21% 3% Gro wth 15% 21% -6% 10% 13%
48.8%
44.4%
Ne t inco me
Customers connected to the network at the end of the period. voice call.
Number of customers making an outgoing chargeable call during the last three months (including voice, messaging or other data services) or receiving an incoming ARPU calculations are based on the closing subscribers' figures.
3
4
2008 1Q Revenues has been restated for comparative purposes
Page 2 of 7
The Egyptian Company for Mobile Services [Mobinil] Commercial highlights for first quarter 2009
Mobinil offers 5 PT Off-Peak Promotion

Mobinil availed a new Off-Peak promotion allowing all prepaid customers to make On-Net calls at a discounted minute rate between 12AM and 12PM.
Mobinil offers 4G Modem Swap Promotion
Mobinil launched a modem-swap promotion allowing customers from all Mobile Operators to swap their old USB modems with the new Mobinil 4G HSPA modem free of charge bundled with one of Mobinil's Internet Everywhere data buckets.
Mobinil launches Prepaid Internet line
Mobinil launched Prepaid Internet line to allow customers to enjoy the fastest Internet speed in Egypt while paying as they consume rather than committing to fixed monthly consumption. Mobinil launched Sale up to 50% on handsets, in addition to exclusive offers on Alo, Primo & Mobinil Business lines.
Mobinil launches handset Clearance at Shops and Franchises
Mobinil offers to Star customers Free number Promotion Mobinil launches bundle for mothers day
Mobinil availed a promotion for all customers of Star 100 & Star 500 allowing them to make free calls all day to any Mobinil number of their choice. Mobinil launched a variety of handsets bundled with ALO and Primo lines.
Corporate Social Responsibility

Mobinil partner of Cairos first Regional e-Waste Forum
Mobinil has been a proud partner in the Regional e-Waste Forum organized by the Center of Environmental Development in Arab Region and Europe [CEDARE] in collaboration with the UN Environment Program and inaugurated by H.E. Dr Tarek Kamel, Minister of Communication and IT. The forum presented success stories and explored channels for cleaner production, resource conservation and controlling hazardous waste. It created a platform of stakeholders capable of implementing potential business opportunities and creating jobs.
Mobinil issues Health and Environment Booklet Mobinil won the best investor relations award
Mobinils booklet aims to convey direct environmental awareness messages for the public in order to correct the wrong perception about the harms of cellular networks and mobile phones. Mobinil has been nominated and selected by the Global trade matters-Egyptian exchange [GTM/EGX] Strategic Advisory Board as the winners of the GTM/EGX 2009 Best Investor relations Award. The Annual GTM/EGX Awards are the first national business awards to recognize the crucial role of the private/public sector companies traded on the EGX 30 Index.
Page 3 of 7

Currency : EGP in (000)'s
The Egyptian Company for Mobile Services Consolidated Balance Sheet

For the period ended March 31, 2009
Assets Current assets Net fixed assets Assets under construction Net intangible assets Rent deposit Investment in Affiliated Companies Total Assets
31/3/2009 1 829 222 8 062 969 787 854 3 129 197 12 765 900
31/12/2008 1 587 594 7 870 041 1 000 561 3 186 777 12 139 900
Y to Y 241 628 192 928 (212 707) (57 580) 626 164 895
% 15.2 % 2.5 % (21.3) % (1.8) % 5.2 % 1.2 %
13 822 907
13 658 012
Liabilities and Shareholders Equity Current liabilities Current portion of long term debt Long term liabilities Total Liabilities
5 376 340 327 200 11 512 640 5 809 100
5 101 553 327 200 11 415 852 5 987 099
(177 999) 96 788
274 787 -
5.4 % 0.8 % (3) %
Shareholders Equity Paid-up capital Treasury shares Reserve (gains from treasury shares) Legal reserve Equity settled share based payments Current year earnings Retained earnings Minority Interest Total Shareholders Equity Total Liabilities & Shareholders Equity Interim distributions
1 000 000 (11 355) 33 981 200 000 423 987 653 483 0 (539) 2 310 267 13 822 907 10 710
1 000 000 (11 355) 84 895 200 000 1 970 229 (1 071 474) 2 532 2 242 160 13 658 012 59 244 8 089
(50 914) 2 621 -
(60 %) 32.4 % 3% 1.2 % -
(1 546 242) 1 071 474 (3 071) 68 107 164 895 594 239
Page 4 of 7

The Egyptian Company for Mobile Services Consolidated Income Statement

Revenues Cost of Sales Gross Margin Gross Margin % * Operating Expenses excluding D & A Depreciation and Amortization Operating Margin Operating Margin % EBITDA EBITDA % Non Operating Expenses Interest Other Non-Operating Income / Expenses Total Non Operating Expenses Net profit before taxes Net profit after taxes
2 490 189 456 863 2 033 326 81.7 % 818 721 494 589 720 016 28.9 % 1 214 605 48.8 %
1Q 2009 (1)
2 261 251 471 650 1 789 601 79.1 % 785 677 352 066 651 858 28.8 % 1 003 924 44.4 %
1Q 2008 (2)
228 938 (14 787) 243 725 2.6 33 044 142 523 68 158 0.1 210 681 4.4
Variance (1)-(2)
% 10.1 % (3.1) % 13.6% 3.3 % 4.2 % 40.5 % 10.5 % 0.3 % 9.9 % 21 %
174 659 (21 759) 152 900 567 116
85 390 16 365 101 755 550 103
89 269 (38 124) 51 145 17 013
104.5 % (233) % 50.3 % 3.1 %
424 051
451 447
(27 396)
(6.1)%
* Included provision no longer required
Page 5 of 7

The Egyptian Company for Mobile Services Consolidated Cash Flows Statement
Cash flow from operating activities Cash flow from Investment activities Free Cash Flow Cash flow from financing activities Net Cash Flow changes Beginning cash balances Ending cash balances
563 953 (646 444) (82 491) (12 317) (94 808) 275 681 180 873
1Q 2009
588 972 (627 420) (38 448) 45 998 7 550 45 448 52 998
1Q 2008
(25 019) (19 024) (44 043) (58 315) (102 358) 230 233 127 875
Variance
(4.2)% (3)% 114.6 % (126.8) % (1355.7)% 506.6 % 241.3 %
Page 6 of 7

About the company
Activity
To establish, operate and maintain a GSM wireless communication network in co-operation with the Egyptian authority for telecommunications according to law no. 8 issued in 1997, and to provide mobile communication services inside the Arab Republic of Egypt in accordance with its license agreement ECMS is listed on the Cairo and Alexandria Stock Exchange RIC: EMOB.CA Authorized capital Issued and fully paidin capital Mobinil Telecom FT Orange Group Orascom Telecom Holding Orascom Telecom Holding Free Float EGP 3,000,000,000 EGP 1,000,000,000 (100,000,000 shares @ EGP10.00 / share) 71.25% 28.75% 51.03%
Listing Capital Structure Shareholder Structure
20% 28.97%
More information
Mobinil Investor Relations
Silvana Samir Gerges Senior Analyst, Investor Relations Telephone Fax e-mail +20 12 320-6179 +2 012 320-0094 investors@mobinil.com
Mobinil Media Relation

Taha Saifullah Manager, Media Relations
Telephone Mobile Fax e-mail Telephone Mobile Fax e-mail
+20 12 320-6770 +20 12 313-8955 +2 012 320-6755 mediarelations@mobinil.com +20 12 320-6771 +20 12 2267023 +20 12 320-6755 mediarelations@mobinil.com
Nelly Abdel Hamid Expert, Media Relations
Page 7 of 7

First Quarter 2009 Earnings Release: The Egyptian Company For Mobile Services (Mobinil)

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