Orange Egypt records losses in 2016, blames pound flotation

Egypt’s second largest mobile operator, Orange Egypt, announced on Wednesday its 2016 consolidated financial results, recording a net loss of EGP 2.5 billion in 2016 compared to a net profit of EGP 10.3 million the year before.

In a statement to the Egyptian bourse, Orange partially attributed the loss to the Central Bank of Egypt's decision to float the local pound against the dollar in November. The company said the pound's subsequent depreciation led to a loss of EGP 2.3 billion.

The company added that a rise in key interest rates by 600 basis points and an increase in fuel and electricity prices also contributed to the 2016 losses.

However, the company's revenues registered EGP 11.7 billion in 2016, a 3.6 percent increase from 2015.

Last year, Orange Egypt acquired a new fourth-generation internet services license after signing a $484 million agreement with the national telecom regulator.

In March 2016, Mobinil, an Egyptian Company for Mobile Services founded in 1998, was officially rebranded as French multinational Orange -- one of the world’s leading telecommunications operators. The rebranding came a year after Orange completed a 99 percent buy-out of the Egyptian company, in a deal worth some 210 million euros.