Djezzy Algeria subscribers up 14%
Algerian telco Djezzy has reported subscriber figures up by 14%.
The group, backed by Russia’s Vimpelcom, said in its Q1 results that it has seen organic revenue growth of 6% YoY and revenues of USD 5.6 billion. Chief Executive Jo Lunder said the group had delivered strong organic EBITDA and revenue growth leading to another quarter of good cash flows.”
It noted that VimpelCom's subsidiary Orascom Telecom Holding S.A.E. ("OTH"), had submitted a formal Notice of Arbitration against the government of the People's Democratic Republic of Algeria. “The arbitration is in respect of actions taken by the Algerian government against Orascom Telecom Algerie ("OTA") and will be conducted in an international forum. OTA is 96.8% owned by OTH, which, in turn, is 51.9% owned by VimpelCom. VimpelCom continues to be open to finding an amicable resolution with the Algerian government that is mutually beneficial to both parties.”
In the Africa & Asia Business Unit, the Company achieved strong growth in its subscriber base across all countries of operation, exceeding 86 million in total.
In Algeria, Djezzy's subscribers increased 14%, as a result of strong customer acquisitions coupled with successful loyalty campaigns aimed at customer retention. Revenues increased 7%, mainly due to a focus on high-value subscribers.
EBITDA grew by 8%, supported by strong cost savings. ARPU for the 1Q12 declined 4%, showing some ARPU dilution partly due to lower MOU as a result of extreme weather conditions. CAPEX remained low due to the ongoing ban on foreign currency transfers preventing the payment of essential suppliers, as well as the import of equipment critical to network maintenance and necessary expansion.