The Algerian government’s opposition to Orascom Telecom’s continued presence in the country helped push the Egyptian telco’s net profits down 32% to US$49m in the first quarter of this year.
The Algerian state’s decision to impose a US$597m bill for…
The Algerian government’s opposition to Orascom Telecom’s continued presence in the country helped push the Egyptian telco’s net profits down 32% to US$49m in the first quarter of this year.
The Algerian state’s decision to impose a US$597m bill for unpaid taxes on Orascom Telecom Algérie caused the unit’s revenues to fall 11% to US$412.5m, compared with the same period a year ago.
Orascom does not disclose net profits for its subsidiaries.
Even though it disputes the claim, Orascom paid the tax bill in instalments between December last year and April. It had to clear the bill to qualify for an appeal against the decision. The appeal, which will be heard in an Algerian court, is Orascom’s last chance to overturn the tax claim under Algerian law.
Algeria’s stance has also prevented Naguib Sawiris, Orascom’s executive chairman, from selling all or part of the company to South Africa’s MTN.
The Algerian communications and finance ministers have both said that the state will retrospectively apply a recent law to buy Orascom Telecom Algérie, which trades as Djezzy, as soon as Orascom puts it up for sale.