Cairo - Mubasher: Pharos Research maintained its “Equalweight” recommendation on Telecom Egypt (TE), with a fair value (FV) of EGP 14.10, according to a recent report.
The company reported a net loss of EGP 513 million in the fourth quarter of 2016, due to Vodafone’s losses and the non-recurring cost of EGP 457 million, despite recording foreign exhange gains of EGP 486 million.
TE also reported an investment loss of EGP 469 million, as Vodafone’s results were negatively impacted by the devaluation of the Egyptian pound and provisions related to potential tax payments.
The research firm said in a statement that Vodafone’s contribution to TE’s profitability will continue to be massively significant.
The blurry future of strategy and operations do not bode well for share price performance, the report indicated.
"We forecast margin pressure going forward, especially once the mobile service is launched," it added.
