Global Telecom Holding expects to obtain 4G licences in Algeria before the end of the second quarter (Q2) of 2016, with the 4G network commercial operation forecast for Q3, according to the company’s investment report on the business results of the first quarter.
Algeria launched the 4G tender in April.
Global Telecom recorded net profits of $87.5m during Q1 of 2016, compared to net losses of $54.7m during the same period of 2015. This occurred despite a decline in income to $707.1m compared to $718.8m during the same period last year.
The company explained that despite the decline in US dollar incomes, there are still good indicators such as the continuous growth of mobile data income which reached an annual growth of 87% during Q1 of 2016.
Mobile data growth in Algeria reached 135%, whereas in Pakistan it reached 80% due to expansion of 3G services. In Bangladesh, growth registered 60%.
Global Telecom stated that there is improvement in Pakistan and Bangladesh. Its subsidiary company Djezzy in Algeria is facing a decline in customer during Q1 of 2016 with an annual rate of 2.5%. The number of customers declined from 17.1 million subscribers to 16.7 million subscribers due to the severe price competition.
The total number of subscribers in Global Telecom networks declined to 86.4m during Q1 of 2016, compared to 87.1m subscribers during the same period last year, a decline of 0.8%.
The research department in Beltone Financial Holding commented on the results of Global Telecom’s work, saying that the improvement of the average profits is due to operational performance, the reduction of operational costs, as well as not recording currency rate losses.
Beltone pointed to the decline of the capital expenditure of Global Telecom during Q1 of 2016, with an annual rate of 32%. This is because the launch of 3G licences in 2015 across all markets the company is working in resulted in more expenditure.