Cairo – Mubasher: Orange Egypt on Wednesday reported a 35.3% year-on-year drop in its unaudited consolidated losses for 2017.

Net loss stood at EGP 1.65 billion last year, against EGP 2.55 billion in 2016, the company said in a filing to the Egyptian Exchange (EGX).

Revenues amounted to EGP 12.28 billion in 2017, up from EGP 11.8 billion a year earlier.

Standalone losses totalled EGP 1.5 billion in 2017, versus EGP 2.86 billion at the end of 2016.

Orange Egypt’s financial results have been affected by an increase in loan rates in 2017, as well as the 600 basis points hike in interest rates, the telecom firm said in a separate statement.

The company added that higher inflation rates and operating expenses, including fuel and electricity, in addition to the flotation of the Egyptian pound, have also impacted the financial results.

Moreover, return on equity (ROE) fell below 90% of paid-up capital last year, according to the statement.

The company’s subscription base will grow after receiving the new frequencies, Orange Egypt noted, adding that it targets adjusting the financial restructure by raising capital to EGP 16.4 billion and refinancing current loans, the company highlighted.

Given that France's Orange posted EUR 41.09 billion ($50.78 billion) sales for 2017, backed by improvements in Europe, while net profits dropped 35% year-on-year to EUR 1.91 billion.

By 11:11 am Cairo time, Orange Egypt’s stock fell 2.44% to EGP 28.4.