Sudatel posts lower Q1 profit

The currency exchange fluctuation and stiff competition in the telecommunication sector has pulled down the first quarter profit of Sudan Telecommunications Company (Sudatel), one of the largest telecom operations in Africa.

Revenue declined by 16 per cent from $157m at the end of March 2008 to $131m at the end of March 2009.

Listed on the Abu Dhabi Stock Exchange and Bahrain Stock Exchange, Sudatel is a leading telecom company in Sudan with operations in Ghana and Senegal. Sudatel Telecom Group, previously Sudan Telecommunication Company before its privatization is a public limited company incorporated in Sudan.

Imad Addin Hussain Mohammed, Chief Executive Officer, Sudatel, said that even though the company recorded 16 per cent increase in the number of customers to four million customers, its net profit came down mainly because of the adverse movement of exchange rate. Sudatel is the first Sudanese company to list its shares on the regional stock exchanges.

Gross profit has come down sharply to Dh35.83m from $62.135m. The company's other income too declined from $1.23m to $658,0336.

"The decline in profit is due in part to the change in US dollar exchange rate. This is in addition to the increased competition in telecom sector," the company CEO said in the financial statement submitted to the Abu Dhabi Stock Exchange.

The company's earnings per share and total net assets too declined sharply due to the adverse exchange rate fluctuation.

 

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