Oct. 26 (Bloomberg) -- Egyptian Co. for Mobile Services lost the most in more than two weeks after third-quarter profit for the Arab country’s second-biggest mobile phone company by users plunged 97 percent.
Shares of the Cairo-based company also known as Mobinil dropped as much as 1.7 percent, the biggest intraday decline since Oct. 10, to 95 Egyptian pounds and traded down 0.8 percent at 10:55 a.m. in Cairo. The benchmark EGX 30 Index retreated 0.4 percent.
Third-quarter net income fell 97 percent to 9.7 million pounds ($1.6 million) from 280.3 million pounds a year earlier, the Cairo-based company said in an e-mailed statement yesterday. That compares with the 110 million-pound median of four analyst estimates compiled by Bloomberg.
The company said profit was hurt by the government’s decision to raise the corporate tax rate. The Finance Ministry in June raised the tax on companies with profit of 10 million pounds or more per year to 25 percent from 20 percent to fund an increase in spending.
--Editors: James Kraus, Peter Branton
To contact the reporter on this story: Ahmed A Namatalla in Cairo at firstname.lastname@example.org
To contact the editor responsible for this story: Claudia Maedler at email@example.com