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Orange Internet turns to profitability again - Daily News Egypt

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Orange Internet turns to profitability again

Orange Egypt managed to make net profits in internet activity for the first time in several years.

The net profit of the internet services allocated by the company under the name of Orange reached EGP 4.5m in the first half (H1) of 2018.

Orange Egypt has suffered heavy losses from ADSL in the past several years due to the financing operations of LINKdotNET, as well as the fierce competition witnessed by the market and controlled by Telecom Egypt.

Orange DSL, formerly known as Link, lost EGP 200m in 2017, with a slight improvement from losses of EGP 370m in 2016.

The internet sector at Orange Egypt collected about EGP 359m in the first half of this year.

Meanwhile, the sector spent some EGP 16.3m to improve the ADSL service to cope with the rapid movement of data in the domestic market.

Orange has made profits in internet services despite losing a number of customers since the beginning of this year. The company lost about 9,000 ADSL clients in the second quarter of the year.

Statements issued by Orange International said its mobile unit in Egypt had lost a number of subscribers to ADSL service, to reach 336,000 clients at the end of June, down from 345,000 clients in March 2018.

The company measures the number of ADSL subscribers contracted with the mobile company’s branches and outlets, and excludes the distributor’s network.

The number of Orange Egypt customers dropped to 31.17 million in June, down from 32.7 million in March.

Orange began year 2018 with 34.2 million users, thus the company lost about 2.9 million clients since the beginning of the year.

Orange International attributed the significant decline in the number of customers to the new regulations approved by the Egyptian National Telecommunications Regulatory Authority (NTRA).

The NTRA had limited the sale of mobile lines to outlets and branches of companies and their senior distributors, while banning sales of lines at other shops.

The consolidated financial indicators of Orange Egypt in the first half of 2018 show losses falling by 77% on an annual basis thanks to sales growth.

Topics: internet Orange

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