Orascom Telecom posts strong results in Asia region with Mobilink’s
sustained performance

Karachi : May12, 2008 - Orascom Telecom, the parent company of Mobilink, Pakistan’s market leader in cellular communication services with more than 30 million customers, has posted impressive Q108 results sustaining its business growth in the Asia region due to sustainable performance by Mobilink in a challenging business environment.

The Egyptian telecom company, a leading player in the Middle East, Africa, Pakistan and Bangladesh regions, posted a strong set of Q1 results with its top line growing 22% reaching US$1,295 million. At the EBITDA level, the Orascom growth was even pore positive with margins reaching 45.1% In the Asia region, Orascom Telecom sustained its business growth with strong positive results on net additions, with particular success interventions through Pakistan’s high-performing Mobilink. In a tough and competitive environment, the market leader continues to grow steadily despite recent market acquisitions, fierce competition and a testing time for the country’s pulsating economic climate.

Zouhair A Khaliq, President & CEO, Mobilink while appreciating the commitment of Orascom Telecom to the Pakistan Telecommunication sector said, “Our uninterrupted growth, a strong business revenue model and market sustainability, coupled with ongoing investment in excess of US$ 2.5 billion in technology and infrastructure has catapulted us to the 9TH position in Asia- Pacific.”

“Orascom Telecom is one of the most dynamic and fastest growing conglomerates in the world, the company has shown impressive results throughout the year; and the Q108 result of a strong and impressive growth is attributable to the leadership and foresightedness of Naguib Sawiris, Chairman of Orascom Telecom. The group’s commitment to Pakistan, both in telecommunication as well as support for social endeavors is indicative of our long-term goals in this region and globally,” he added. The overall Q108 results also appreciated the impressive performance of Mobilink in Pakistan despite a changing political, economic and localized environment. Mobilink increased its promotions in the quarter and usage grew 3% Y/Y. The company was also able to increase margins and EBITDA for the quarter came in 12% higher than estimates.

Orascom’s profitability was strong and looking at the overall trends, the company reported that the numbers were broadly in line with management’s own annual guidance and expectations. Revenue grew 18% in EGP terms and 22% in US$ terms, which were slightly below forecast. The company was guiding at over 20% growth, but even if it meant US$ numbers, the result have been achieved with the ‘help of depreciating US$’ as opposed to operational overachievement. ARPUs across all markets were challenging although the rate of their decline was less dramatic than last year. Meanwhile, the 45% EBITDA margin (50.9% in the GSM business) was a solid result, exceeding the company’s expectations. All in all, Orascom called the results on the EBITDA level ‘in line with expectations'.