COMPANY OVERVIEW

ORASCOM TELECOM MEDIA

JAZIRA SECURITIES BROKERAGE

Wednesday, February 11, 2015

Summary

Market Price (EGP/

Share)

OTMT is a holding company with investments in Egypt, North Korea, Lebanon and other North African and Middle-Eastern countries. The activities of
OTMT are mainly divided into its Global System for Mobil-GSM, Media and Technology, and Cable businesses. The GSM activities include mobile telecommunications operations in Egypt, North Korea and Lebanon. The Media and Technology division consists of OT Ventures/Intouch Communications
Service and the OT Ventures Internet portals and other ventures in Egypt, including LINK Development, ARPU+ and LINK on LINE. The Cable business
focuses on the management of cable network. OTMT holds 5% directly-held stake in ECMS-Mobinil an entity that is 93.92% owned by MT Telecom
S.C.R.L (MTT) (entity that is 100% owned by France Telecom group).
Company Highlights

Industry Highlights

OTMT 9M net profit dropped by 51% (16 Nov 2014)

Ministry of Communications is developing new initiatives to

improve services.

1.26

Reuters Codes

OTMT.CA
Orascom Telecom Media &
Technology Holding

Full Name
Short Name

Orascom Telecom

5,246

No. of Shares (mn)

OTMT posted EGP603.4 million consolidated net profit for 9M FY14, decline by The Ministry of Communications aims to implement unconventional
51% vs. EGP1.2 billion in the same period a year earlier.
solutions to prompt growth for the telecommunication and information
technology sector through adding services with projects in partnership
Egypt's OTMT to sell non-core assets in OT Ventures (10 Dec.2014)
with the private sector. The ministry will seize the opportunity represented by the consolidated license to restructure the telecommunication
industry to achieve a balance between companies, and expand competiOTMT continues its Management Contract of Lebanese mobile
tion for the benefit of the consumer.

Free Float (%)

48.3

Market Cap (EGP/mn)

6,819

Analyst : Nada Safeer

OrascomTelecom(EGP)

operator Alfa (8/10/2014)

Opportunities

Shareholder's Structure

OT MT

51.7%
48.3%

Fre e Float

The fast growing demand on internet services falls in favor of the

companys media & technology division.
Launching MENA Cable is a very positive step, It opens the door
for OTMT. to serve the vast markets in the Middle East .
OTMTs put option in Mobinil-ECMS could be exercised during
each Jan.& Feb. from 2015 to 2017. if the company exercised the
1.67% permitted for this fiscal year The proceed will be approximately EGP0.5 bn .

Threats

Sources: PHD s Press Releases, historical figures & Jazira Capital estimates

International sanctions on North Korea as well as currency control

and more importantly dividend repatriation restrictions imposed
by the country severely limit OTMTs future ability to distribute
dividends or even transfer funds out of North Korea.
Operations in various foreign currencies expose the company to
significant exchange risk.
Facing growing competition in the internet services activity.

5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0

FY ending Dec.

2013a

2014e

2015f

2016f

Revenues (EGP mn)

3.037

3,401

3,741

4,116

Net profit/loss (EGP mn)

723

619

1,051

1,177

EBITDA Margin (%)

56.0

49.0

49.0

50.0

EPS (EGP)

0.11

0.10

0.16

0.18

DPS (EGP)

0.05

0.09

0.11

11.33

13.25

7.79

6.96

3.7

6.9

8.4

PER
DY (%)

a: Actual, e: Estimate f: Forecast & mn: million

1

COMPANY OVERVIEW
ORASCOM TELECOM MEDIA

JAZIRA SECURITIES BROKERAGE

Wednesday, February 11, 2015

Jazira Securities Brokerage

15 Shooting Club Street,
Dokki, Giza, Egypt
Tel: (+202) 3760 9915 - 37609941
Fax: (+202) 3760 9883
www.jaziracapital.com

Jazira Securities Online Trading

You can trade online through Jazira Securities online
trading portal ...
Please contact our customer Service representatives
for further information..

JSB Contacts

Title

Land Line

Email

Hussein El Sawalhy, CFA

Managing Director

(+202) 3760 9915

helsawalhy@jaziracapital.com

Ahmed Helmy

Head of Sales & Trading

(+202) 37609941

ahelmy@jaziracapital.com

Nada Safeer

Research Department

(+202) 37609883

mabbass@jaziracapital.com

Momen El-Shayal, CFTe

Senior Technical Analyst

(+202) 3760 98 73

mshayal@jaziracapital.com

George Mansour

Customer Service

+20122 921 4069

gmansour@jaziracapital.com

Amr Abdo

Marketing Manager

+20109 166 1366

amrabdo@jaziracapital.com

Disclaimer
Jazira Securities Brokerage (JSB) is a licensed Egyptian Stock Market Broker, regulated by the Egyptian Financial Service Authority.
Opinions, estimates and projections contained in the research reports or documents are of the author as of the date published and are subject to change without notice
JSB research reports or documents are not, and are not to be construed as, an offer to sell or solicitation of an offer to buy any securities.
Unless otherwise noted, all JSB research reports and documents provide information of a general nature and do not address the circumstances of any particular investor.
Neither JSB nor its mother company (Jazira Capital), or any of its affiliates accept liability whatsoever for any investment loss arising from any use of the research reports or their contents.
The information and opinions contained in JSB research reports or documents have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as
to their accuracy or completeness.

JSB, Jazira Capital or any of its affiliates and/or their respective officers, directors or employees may from time to time acquire, hold or sell securities mentioned herein as principal or agent.
JSB research reports and all the information opinions and conclusions contained in them are protected by copyright.
The research reports or documents may not be reproduced or distributed in whole or in part without express consent of JSB Research.
JSB research reports or documents, recommendations and information are subject to change without further notice.