Mobinil continues to lead mobile telecommunications in Egyptian market

The reported figures reflect:
• 22.853 million Subscribers, showing an increase of 30% over the same period last year.
• Subscribers' additions reached 2.738 million subscribers, 1.064 million in 1Q and 1.674 million in 2Q.
• Net revenues reached LE5,215 representing an increase of 11% over the same period last year, with 2Q revenues of LE2,725 representing 9% growth over 1Q 2009.
• EBITDA reached LE2,532 representing an increase of 23% over the same period last year reflecting an EBITDA margin of 48.6%, 48.8% in 1Q and 48.3% in 2Q.
• Net income reached LE960 representing an increase of 9% over the same period last year, LE424 in 1Q and LE536 in 2Q.
• Free cash flow reached LE521 compared to negative LE1 over the same period last year.

Commenting on first half 2009 results, Alex Shalaby, Chairman, Mobinil, said:

"I am very pleased to celebrate the 11th anniversary of Mobinil where we now achieved around 23 million subscribers, and continued our growth and success in a tight economy through our creative offers and the breakthrough services we are providing to the Egyptian market. I am also delighted to witness this sustained growth year over year given the tough market conditions."

Commenting on first half 2009 results, Hassan Kabbani, CEO, Mobinil, said, "I am very pleased to celebrate Mobinil's 11th anniversary seeing Mobinil maintaining its leadership position in the Egyptian market with nearly 23 million subscribers. Despite the challenging global economical situation and increased competition, we were able to achieve a double digit growth in our turnover and profits while increasing our EBITDA margin compared to last year. We will pursue our efforts to offer optimal quality of both data and voice services to ensure the best customer experience."

The reported first half net revenues reached LE5,215 representing a growth of 11% over the same period last year.

First half blended ARPU reached LE40 with a decline of 15% over the same period last year mainly driven by the change of subscriber mix as we continue to penetrate lower market segments.

EBITDA for the first half reached LE2,532 representing an increase of 23% over the same period last year, an increase of 8% over 1Q 2009, reflecting a margin of 48.6%. The sustainability of EBITDA margin is due to the higher gross margin given our on-net strategy and our cost prudence measures.

Net Profit for first half reached LE960 representing an increase of 9% over the same period last year. First quarter, net profit contribution is LE424 and second quarter, net profit contribution is LE536 representing an increase of 26% over 1Q 2009. Imputed interest amounts relative to 3G instalment payments charged during the first half amounted to LE58 Vs LE88 in 1H 2008.

Capital expenditure for the first half reached LE994 Vs LE1,310 in 1H 2008.

Commercial highlights for second quarter 2009:

• Mobinil re-launched Ahsan Nas Service
Mobinil decided in June to avail Ahsan Nas as a permanent service for all ALO and Primo Monthly customers for 3 preferred numbers at a rate of LE0.15 per minute.
• Mobinil offers Free USB Modem
Mobinil launched a promotion for Business Customers where they can benefit from a free USB Modem.
• Mobinil enhanced its point scheme process
Star Awards and Mobinil Awards programs now offer customers the opportunity to get the handset of their choice with their accumulated points.
• Mobinil offers GPS-enabled handsets
For the first time in Egypt, Mobinil has availed a variety of GPS enabled handsets through its retail channels.
• Mobinil re-launched Corporate Buckets
Mobinil re-launched Business buckets for the Enterprise market. The new Buckets provide customers with free monthly bundled minutes [mobile to mobile] and intercompany calls [Closed User Group minutes - CUG], in return for a fixed monthly commitment.

Corporate Social Responsibility:

• Mobinil observed the World No Tobacco Day 2009
Mobinil has been supporting the WNTD drive for the last three years. An initiative launched by the World Health Organization [WHO] and supported by active corporate citizens all over the world like Mobinil. The event aims to inform the public about the dangers of using tobacco, what WHO is doing to fight the smoking epidemic and what people around the world can do to claim their right to live healthy lives and protect future generations.
• Mobinil Academy: empowering the next generation
Mobinil outreaching and partnering with educational entities and Non-Governmental Organizations in Cairo and regions launched the Mobinil Academy to support educational development, as well as open career opportunities for youth, through equipping them with the required business skills and exposure that set them up for promising career paths.
• Mobinil & UNICEF collaborate to establish kindergartens in Upper Egypt
Mobinil and UNICEF celebrated the graduation of the first class of kindergarten students upon their completion of a joint pre-primary education program in Upper Egypt. With Mobinil's support, 60 kindergartens classrooms were established to reach 1500 children in Assiut, Sohag, and Qena.
• Mobinil Launched Blood Donation Campaign
Mobinil initiated a four day blood donation campaign for its employees in its different premises (Nile City, Smart Village, WTC and Agouza).