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Here’s the entire text of the prepared remarks from Orascom Telecom’s (ticker: ORSTF) Q3 2005 conference call. The Q&A is here.

Conference Call Third Quarter, 2005
Date : 22 nd November, 2005
Time : 17:00

Speakers from OTH:
Naguib Sawiris Chairman & CEO
Aldo Mareuse Executive Officer Finance & CFO
Hatim El Gammal Investor Relations Director

Operator:

Thank you for standing by and welcome to the Orascom Telecom Third Quarter 2005 results conference call. At this time all participants are on listener mode. I will now hand the conference over to Paul Sydney. Please go ahead Mr. Sydney.

Paul Sydney:

Hi Good morning and good afternoon ladies and gentlemen. My name is Paul Sydney from Credit Suisse in London and I would like to welcome you all to the Orascom Telecom conference call to discuss the results for the third quarter, 2005. Representing Orascom Telecom in today’s call, it is my great pleasure to introduce Mr. Naguib Sawiris Chairman and CEO, Mr. Aldo Mareuse EFO and CFO and Mr. Hatim El Gammal Investor Relations Director. The call will begin with a presentation by Mr. Sawiris and this will be followed by a question and answer session, so without any further delay I would like to pass the call over to Mr. Gammal just to make a very brief statement prior the presentation.

Hatim El Gammal:

Good afternoon ladies and gentlemen, I would like welcome you to our third quarter results of 2005, I would also like to make the standard forward looking, safe harbor statement, before we start our conference call, some of these statements are expectations based on reasonable assumptions; these forward-looking statements are subject to numerous risks and uncertainties. These statements may not be regarded as a representation of anticipated results which will occur on our expected objectives. The forward-looking statements are only valid until this date and Orascom Telecom does not undertake to update these in any form. I would like to hand over the call to Mr. Naguib Sawiris who will give us an update on the vision and strategy of Orascom Telecom followed by Mr. Aldo Mareuse who will also give us an update on our financial results.

Naguib Sawiris:

As you see from the results it is a reflection of our on going strategy to capture the maximum percentage of the market share where we are the leaders in Algeria, Pakistan and Egypt. You can see that we have maintained our dominant market share where the loss of market share is very minimal. You can also see what we promised a year ago that our margins will improve based on the subscriber increase. It is happening now. Our EBITDA margin has risen. There is nothing new to our continuing strategy; we are continuing the strategy of extracting maximum number of subscribers in the markets we are in. We believe in this long term strategy, which will increase our targets by year end to approximately 28 million subscribers. In this quarter alone we added four million then we could even supersede the target of 28 million. I will give the word to Mr. Mareuse our CFO, and if you have any questions I am on the call with you.

Aldo Mareuse:

Good morning everybody just to go over the details, you have seen our subscribers base reached 25 million which is a constant progression quarter over quarter of 20% increase over last quarter, revenues are up 60% from last year and 4% from last quarter and the EBITDA are up 15% over last quarter. Margin has increased by about 4% since the last quarter this is mostly in Algeria, Pakistan as well as in Iraq; we saw some substantial improvement in the margin as we basically said in our last conference call, and net income for the first nine months which is about US$ 491 million. If we go more into the subsidiaries I would say on the subscriber basis the growth has been pretty much impressive across the board. Algeria, Pakistan, Egypt getting the same kind of the growth rate. As far as the ARPU is concerned, obviously as we get into lower income segments, ARPU continues to decline the only factor which has to be explained is the drop in ARPU in Pakistan, mostly due to the drop in the mobile termination rate of about 20% which led to a steeper decrease in ARPU in Pakistan from US$ 8.7 in the first 6 months to US$ 7.5. Our market share has decreased slightly in Algeria and Pakistan, obviously these markets are growing very aggressively and we still maintained a very high market share we got a market share well above 60%, we are coming from a very high base. In Tunisia we continued to increase our market share to 40%, a 5% up from last quarter. CAPEX for the first 3 quarters reached US$ 1.4 billion and we are expecting CAPEX to be anywhere around US$ 1.5 - US$ 2 billion before the end of the year. As far as the P&L is concerned I do not think that there is anything notable to highlight, so I would now open the floor to questions and answers.

Related:

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Source: Full Transcript of Orascom Telecom’s 3Q05 Conference Call - Prepared Remarks (ORSTF)
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