Information  X 
Enter a valid email address

Investcom LLC (INVT)

  Print      Mail a friend

Thursday 17 November, 2005

Investcom LLC

3rd Quarter Results

Investcom LLC
17 November 2005

17 November 2005


          •  Gross revenue up by 46% year-on-year
          •  EBITDA increased by 55% year-on-year to US$296.0 million
          •  35% net profit growth to US$163 million
          •  64% year-on-year growth in mobile subscribers

For the nine months ended September 30, 2005, Investcom LLC reported gross
operating revenue of US$645.9 million, compared to US$441.5 million for the same
period in 2004.

EBITDA for the period was US$296.0 million, compared to US$191.0 million for the
same period of 2004.  This translates to an EBITDA margin of 46% up from 43% in
the first nine months of 2004.

Net profit, including minority interests, for the period to September 30, 2005
was US$162.6 million, compared to US$119.9 million for 2004, representing a
year-on-year increase of 35.6%. Net profit margin (net profit as a percentage of
gross operating revenue) stood at 25.2% for the nine months to September 30,
2005, compared to 25.5% for the same period in 2004 (after deduction of an
extraordinary profit of US$7.1 million due to the disposal of an investment in

Taha Mikati, Chairman of Investcom, said:

'It is my pleasure to report on nine months of intense activity that captured
strong growth in revenues and profits surpassing those achieved in the full
twelve months to December 2004.  We continue to capitalize on strong and growing
consumer demand for mobile telecommunications in Africa and the Middle East
without sacrificing profitability.'

Operational performance

At the end of September 2005, Investcom was managing 3.7million mobile
subscribers through its AreebaTM or Spacetel brands in Benin, Cyprus, Ghana,
Guinea-Bissau, Liberia, Syria and Yemen and Sudan.  This was up from 3.3 million
in June 2005.  On November 15, 2005, the company reported having exceeded its
target of 4 million subscribers.

Gross operating revenue from mobile telephony comprises the main component of
Investcom Group's sales, representing 90.8% of gross operating revenue in the
first nine months to September 30, 2005. Overall growth in Investcom's customer
base and increased mobile penetration across a majority of its operating
countries has positively impacted gross operating revenue.

Gross operating revenue for mobile telephony amounting to US$586.4 million was
up by 49.1% year on year in the nine months to September 30, 2005.

Investcom currently operates mobile networks in eight countries and has also
recently been awarded GSM licenses to build and operate mobile networks in
Afghanistan and Guinea, expanding its operations to ten countries and boosting
its combined population under license to approx. 147 million.

Gross operating revenue (after inter-company eliminations) for other services,
including international carrier services, fixed telephony and engineering, was
up by 23.4% year-on-year, in the nine months to September 30, 2005, at US$59.5
million.  This represents 9.2% of total consolidated operating revenue in 2005.

Commenting on the operational performance, Azmi Mikati, Investcom's Chief
Executive, said:

'We continue to make significant progress in our mission to be a leading
international telecommunications company in each of the markets in which we
operate. Our strategy has been to expand into markets which present exciting,
high-growth opportunities and as this set of results and our current subscriber
numbers show, we are executing on this strategy.'

                                          Investcom LLC
                                  Consolidated Income Statement
                             For The Period Ended September 30, 2005
                                    (Expressed in US Dollars)
                                                               30-Sep-05                30-Sep-04

Gross operating revenue                                      645,900,300              441,512,229
Gross operating costs                                      (228,841,730)            (183,838,231)

GROSS PROFIT                                                 417,058,570              257,673,998

Other operating income                                           516,736                (448,494)
Administration expenses                                    (120,646,966)             (65,909,505)
Depreciation and amortisation                               (83,295,400)             (37,504,747)
Provisions for doubtful receivables                            1,114,141                (346,827)
Doubtful debts written off                                   (2,016,817)                      (0)

PROFIT FROM OPERATIONS                                       212,730,264              153,464,425

Finance costs (net)                                          (7,350,665)              (3,341,151)
Gain (Loss) on exchange                                      (3,242,298)              (1,407,319)
Share of results of associates                                12,630,829                9,637,107
Provisions                                                             0                      (0)
Net (loss) gain on sale of investment in
subsidiaries                                                     (3,958)                7,392,026
Gain (Loss) on sale of held for trading
securities                                                       349,628                   20,881

Net Profit (Loss) for the year Before
Taxation                                                     215,113,800              165,765,969

Income tax expense                                          (52,475,404)             (45,857,406)

Net Profit (Loss) For the Year                               162,638,396              119,908,563

Group Share                                                  150,488,635              107,817,009
Minority Share                                                12,149,761               12,091,554

NET PROFIT FOR THE YEAR                                      162,638,396              119,908,563

                                      Investcom LLC
                                Consolidated Balance Sheet
                                 As at September 30, 2005
                                (Expressed in US Dollars)
                                                         30-Sep-05               31-Dec-04

Non current assets
Property, plant and equipment                          368,056,945             281,310,052
Investments in associates                               57,006,122              41,308,178
Long term  accounts receivable                              72,859                  81,197
Available for sale securities                               20,352                 662,860
Intangible assets                                      265,833,467             267,474,664

                                                       690,989,745             590,836,951

Current assets
Inventories                                              5,673,527               4,676,593
Accounts receivable and prepayments                    203,726,115             111,202,195
Held for trading securities                              2,598,199               1,424,389
Bank balances and cash                                 174,133,031             116,210,871

                                                       386,130,872             233,514,048

TOTAL ASSETS                                         1,077,120,617             824,350,999

Capital and reserves
Share capital                                           60,000,000              20,000,000
Statutory  reserve                                       2,000,000               2,000,000
Foreign currency translation reserve                   (7,344,619)             (6,660,518)
Retained earnings                                      206,745,472             113,064,996
Result for the period                                  150,488,635             148,094,802
MINORITY INTERESTS                                     131,899,275             118,903,905

Total equity                                           543,788,763             395,403,185


Provisions                                                 447,148                  81,398
Long term accounts payable                              75,199,638              68,039,630
Term loans                                              12,294,516              15,832,310
Deferred income tax liability                           18,906,258              15,371,030

                                                       106,847,560              99,324,368

Accounts payable and accruals                          200,166,597             134,532,038
Taxes Payable                                           21,229,154              37,075,365
Bank overdrafts                                        130,721,064             106,763,912
Amounts due to shareholders                             22,827,206               5,138,399
Current portion of term loans                           10,564,733              12,283,715
Current portion of long term                            18,426,963              19,411,797
accounts payable
Other current liabilities                               22,548,577              14,418,220

                                                       426,484,294             329,623,446

TOTAL EQUITY AND LIABILITIES                         1,077,120,617             824,350,999

- End -

For more information please contact:

Capital MS&L for the Company

Neil Doyle on +44 20 7307 5330 or +44 777 1978 220 or on
[email protected]

Claire Maloney on +44 20 7307 5330 or +44 777 0958 479 or on
[email protected]

About Investcom

Investcom LLc ( is an international provider of mobile
telecommunications services with operations in eight countries in the Middle
East, Africa and Europe.  The company operates GSM networks, mostly under the
AreebaTM brand, in Syria, Ghana, Yemen, Benin, Liberia, Cyprus, Guinea-Bissau
and Sudan. Investcom has also recently been awarded GSM licenses to build and
operate mobile networks in Afghanistan and Guinea, expanding its operations to
ten countries and boosting its combined population under license to approx. 147

The company also provides international carrier services, principally through
its operations in Monaco, fixed telephony services in the United Kingdom and
telecommunications engineering and consulting services.

                      This information is provided by RNS
            The company news service from the London Stock Exchange                                                                                                                                

a d v e r t i s e m e n t