CORRECTED - (OFFICIAL)-UPDATE 1-Telecom Egypt Q2 net rises 16 pct

(Clarifies subscriber losses in fourth paragraph to show previous figure of 11.3 million instead of a reduction of 1.88 million; also corrects in seventh paragraph to add "in the quarter" and changes second quarter number to 47.8 pounds from 50.5 pounds. Corrects after company corrects previously stated 2008 comparative figures)

* Consolidated Q2 net 789 million Egyptian pounds

* Beats average analyst forecast of 773 million pounds

* Subscribers decline but average revenue jumps

* Income from Vodafone Egypt slips 4 percent

(Adds results details, interview with CEO)

By Alastair Sharp

CAIRO, Aug 13 (Reuters) - Landline monopoly Telecom Egypt posted (ETEL.CA) a consolidated Q2 net profit of 789 million Egyptian pounds ($142 million) on Thursday, up 16 percent on a year before and in the middle of a range of forecasts.

The firm (ETELq.L) said its net profit margin was 29.5 percent on total consolidated revenue of 2.68 billion pounds.

Net profit forecasts by five analysts for the three-month period ranged from 703 million to 853 million pounds. The average forecast was 772.7 million pounds. The analysts forecast revenue in a range between 2.50 billion and 2.53 billion pounds.

The firm said it had 9.8 million fixed-line subscribers by end-June, compared with 11.3 million at the end of June 2008.

"There has been a decline in the customer base, mainly because of the change in our credit policy," newly appointed Chief Executive Officer Tarek Tantawy told Reuters.

Telecom Egypt has tightened its consumer credit policy in order to reduce exposure to bad debt, he said. Customers are now disconnected after falling three months behind in payments, compared with 12 months previously.

Average revenue per user (ARPU) jumped to 59.6 pounds per month in the quarter versus 47.8 pounds in the second quarter of 2008.

"What we see for the future is diversifying revenues in growth areas rather than just relying on growing the fixed line subscribers," said Tantawy, named the new CEO on Wednesday. He replaced Akil Beshir who remains non-executive chairman.

Telecom Egypt holds a 45 percent stake in Vodafone's (VOD.L) unit Vodafone Egypt. That stake added profit of 706 million pounds to the landline firm's bottom line in the second quarter.

"I see that the results are good on the operational level but the investment income from (Vodafone Egypt) is lower than expected," said Nemat Choucri at HC brokerage.

Income from Vodafone Egypt slipped 4 percent on a year earlier, the company statement said.

Telecom Egypt said Vodafone Egypt added 1.43 million subscribers in the quarter to total 20.4 million as of end-June.

Tantawy said Telecom Egypt had a strong balance sheet and continued to seek acquisitions in the region but that no targets were currently being eyed.

The firm is bidding to buy regional operator Orascom Telecom's (ORTE.CA) (ORTEq.L) Internet subsidiary LinkDotNet.

"LinkDotNet would be an interesting asset that we are looking at ... We are looking at acquiring LinkDotNet," he said.

Egypt's telecom regulator had approved the bid and was not expected to block any possible future purchase, Tantawy added.

Acquiring LinkDotNet would further solidify Telecom Egypt's dominance of the internet market in Egypt, currently 60 percent of market share. (Reporting by Alastair Sharp; Editing by John Stonestreet and Jon Loades-Carter) ($1=5.541 Egyptian Pound)