First Quarter 2009 Earnings Release

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Georgia Mills
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1 Mobinil continues to lead mobile telecommunications in the Egyptian market with million subscribers which represents an increase of 31%; million net additions; revenue growth of 10%; EBITDA growth of 21% and consolidated net income reached EGP 424 million. Cairo: April 29 th, 2009 The Egyptian Company for Mobile Services (Mobinil) announced its first quarter 2009 consolidated results. The reported figures reflect: million Subscribers, an increase of 31% over the same period last year. Subscribers additions reached 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 Mobinil s 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) Page 1 of 7

2 Key performance highlights for first quarter Commercial KPIs 1Q 2009 Closing Base (KSub) 1 21,179 16,161 31% Postpaid (KSub) % Prepaid (KSub) 20,520 15,606 31% Churn rate -8.6% -6.3% 36% Active Base (KSub) 2 20,325 15,017 35% Postpaid (KSub) % Prepaid (KSub) 19,666 14,462 36% Blended ARPU % Postpaid ARPU % Prepaid ARPU % Global without visitor Roaming % Blended ARPU "Annual Rolling" % Postpaid ARPU "Annual Rolling" % Prepaid ARPU "Annual Rolling" % Global without visitor roaming "Annual Rolling" % Financial KPIs 1Q Q 2008 Global Revenue "MEGP" 4 2,490 2,261 10% Connection fees % Handset & others % Service Revenue 2,344 2,080 13% Roaming Revenue % EBITDA 1,215 1,004 21% EBITDA % 48.8% 44.4% 10% Income before tax % Net income % Operational KPIs 1Q Q Q 2008 Growth Growth Growth Total number of sites 3,899 3,405 15% Total number of switches & Gateways % 1 Customers connected to the network at the end of the period. 2 Number of customers making an outgoing chargeable call during the last three months (including voice, messaging or other data services) or receiving an incoming voice call. 3 ARPU calculations are based on the closing subscribers' figures Q Revenues has been restated for comparative purposes The Egyptian Company for Mobile Services (Mobinil) Page 2 of 7

3 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 launches handset Clearance at Shops and Franchises Mobinil launched Sale up to 50% on handsets, in addition to exclusive offers on Alo, Primo & Mobinil Business lines. Mobinil offers to Star customers Free number Promotion 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 launches bundle for mother s day Mobinil launched a variety of handsets bundled with ALO and Primo lines. Corporate Social Responsibility Mobinil partner of Cairo s 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 s 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 won the best investor relations award 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. The Egyptian Company for Mobile Services (Mobinil) Page 3 of 7

4 The Egyptian Company for Mobile Services Consolidated Balance Sheet For the period ended March 31, 2009 Assets Currency : EGP in (000)'s 31/3/ /12/2008 Y to Y % Current assets % Net fixed assets % Assets under construction ( ) (21.3) % Net intangible assets (57 580) (1.8) % Rent deposit % Investment in Affiliated Companies Total Assets % Liabilities and Shareholders Equity Current liabilities % Current portion of long term debt Long term liabilities ( ) (3) % Total Liabilities % Shareholders Equity Paid-up capital Treasury shares (11 355) (11 355) - - Reserve (gains from treasury shares) (50 914) (60 %) Legal reserve Equity settled share based payments % Current year earnings ( ) - Retained earnings Interim distributions 0 ( ) Minority Interest (539) (3 071) - Total Shareholders Equity % Total Liabilities & Shareholders Equity % The Egyptian Company for Mobile Services (Mobinil) Page 4 of 7

5 The Egyptian Company for Mobile Services Consolidated Income Statement For the period ended March 31, Q 2009 (1) 1Q 2008 (2) Variance (1)-(2) Currency : EGP in (000)'s Revenues % Cost of Sales (14 787) (3.1) % Gross Margin % Gross Margin % 81.7 % 79.1 % % * Operating Expenses excluding D & A % Depreciation and Amortization % Operating Margin % Operating Margin % 28.9 % 28.8 % % EBITDA % EBITDA % 48.8 % 44.4 % % % Non Operating Expenses Interest % Other Non-Operating Income / Expenses (21 759) (38 124) (233) % Total Non Operating Expenses % Net profit before taxes % Net profit after taxes (27 396) (6.1)% * Included provision no longer required The Egyptian Company for Mobile Services (Mobinil) Page 5 of 7

6 The Egyptian Company for Mobile Services Consolidated Cash Flows Statement For the period ended March 31, 2009 Currency : EGP in (000)'s 1Q Q 2008 Variance % Cash flow from operating activities (25 019) (4.2)% Cash flow from Investment activities ( ) ( ) (19 024) (3)% Free Cash Flow (82 491) (38 448) (44 043) % Cash flow from financing activities (12 317) (58 315) (126.8) % Net Cash Flow changes (94 808) ( ) (1355.7)% Beginning cash balances % Ending cash balances % The Egyptian Company for Mobile Services (Mobinil) Page 6 of 7

7 About the company Activity Listing Capital Structure Shareholder Structure 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 EGP 3,000,000,000 Issued and fully paid in capital Mobinil Telecom FT Orange Group 71.25% Orascom Telecom Holding 28.75% EGP 1,000,000,000 (100,000,000 EGP10.00 / share) 51.03% Orascom Telecom Holding 20% Free Float 28.97% More information Mobinil Investor Relations Silvana Samir Gerges Senior Analyst, Investor Relations Telephone Fax investors@mobinil.com Mobinil Media Relation Taha Saifullah Manager, Media Relations Nelly Abdel Hamid Expert, Media Relations Telephone Mobile Fax mediarelations@mobinil.com Telephone Mobile Fax mediarelations@mobinil.com The Egyptian Company for Mobile Services (Mobinil) Page 7 of 7

The Egyptian Company for Mobile Services [Mobinil] Earnings Release. First Quarter 2007

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