(Adds detail on foreign exchange hit, background)
CAIRO Aug 6 Egypt-listed telecoms firm Global
Telecom Holding posted a widened net loss for the
second quarter, blaming a weak Egyptian pound and
impairment charges in its African operations.
Foreign exchange losses of $109 million and a bad business
performance in the Central African Republic and Burundi, which
contributed to impairments of $22 million, hit Global Telecom's
revenues, the company said on Wednesday.
Egypt's central bank, which effectively controls official
foreign exchange rates, allowed the Egyptian pound to
weaken sharply against the dollar between April and June.
Global Telecom, formerly known as Orascom Telecom, has
exited most of its Egyptian operations and is now a subsidiary
of Russia's Vimpelcom. An official at the company said
the foreign exchange hit was the result of a "retranslation" of
loans between U.S. dollars and Egyptian pounds.
Global Telecom's second-quarter net loss of $173.1 million
compared with a loss of $22.7 million in the second quarter of
Revenue fell almost 5 percent to $863.3 million in the three
months to June. Also weighing on revenues, sales dropped 6
percent in Algeria and 8 percent in Pakistan, partly because of
tough competition, the company said.
(Reporting By Stephen Kalin; editing by Jane Merriman and