Landline monopoly Telecom Egypt (ETEL.CA) reported a 25% drop in second-quarter net income on Wednesday, pushed lower by weaker revenue and employee demands for higher pay since the country’s president was overthrown in a popular uprising.
Net income was EGP 613 million ($100.87 million), down from EGP 813 in the second quarter of 2011, the company said in a statement. Revenue fell 7.9%.
Additionally, the working capital dropped to reach EGP 5.704 billion, compared to EGP 6.062 billion a year earlier. Total investments hit EGP 27.298 billion, compared to EGP 28.788 billion.
Furthermore, Telecom Egypt’s standalone business results for Q2/2012 revealed posting net profits of EGP 1.756 billion, a decline of 6.7%, compared to net profits of EGP 1.882 billion during Q2/2011.
Egypt’s economy has been hit by political turmoil since Hosni Mubarak was ousted in February 2011. A new president took office in June but the transition has been marred by violence and rows between political groups and the ruling army.
