Tuesday, May 15, 2012
DUBAI (Zawya Dow Jones)--Orascom Telecom Media and Technology, or OTMT, reported Tuesday a first-quarter net profit of 994.7 million Egyptian Pounds ($164 million), its first standalone financial results since being hived off from its parent and listed earlier this year.
The company said revenues in the three month period were EGP235.4 million. No comparative figures were provided.
Ahmed Adel, an analyst at Cairo-based Naeem Brokerage, said net profit was boosted by EGP842.5 million of paper gains on revaluing OTMT's stake in the Egyptian mobile operator Mobinil, based on the agreed put and call options between OTMT and France Telecom--the operator's main stakeholders.
"Expected cash proceeds from the Mobinil sale and discounted future management fees together make up around 80% of OTMT's value," said Adel, adding that around 60-70% of the EGP6 billion proceeds from sale of its Mobinil stake will be distributed as dividend. However, OTMT management have not provided information on the future strategy of the company, Adel added.
France Telecom said in April that the Egyptian regulator has authorized its offer for a stake in Mobinil. The tender offer is part of a France Telecom effort to take control of the Egyptian operator.
OTMT shares closed 1.4% down Tuesday at EGP1.4.
-By Shereen El Gazzar, Dow Jones Newswires; +971 444 61684; Shereen.elgazzar@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
15-05-12 1322GMT
