Egypt-based telecoms group Orascom disappointed investors by reporting a decline in half-year net profit this week, but has vowed to enter six additional African markets within the next year as part of an expansion strategy. Net profit for the first half of 2008 fell 72 percent to US$276 million from US$995 million in the same period the previous year, largely due to a non-recurring gain of US$708 million recorded in the first half of 2007 resulting from Hutchison Telecom’s share of the profit from the sale of its Indian subsidiary. Excluding the non-recurring gain, net profit was down 4 percent, the company said. Revenue climbed 19 percent to US$2.7 billion while the total number of subscribers jumped 31 percent from the same period a year ago to over 77 million. “Revenue growth is low and below our expectations,” Mai Khamis, analyst at Cairo-based investment firm HC Securities, told Dow Jones Newswires.

Meanwhile, in a webcast on the company’s website following the release of its first-half results, Orascom’s chairman and chief executive Naguib Sawiris hinted at the new African focus, reports Dow Jones Newswires. “We believe that within the next 12 months we could add up to six more countries, all in Africa,” he said. He added that the operator would look at entering into markets where Vodafone and MTN were not present. In May, Orascom announced it had created a new subsidiary, Telecel Globe, to look into small-sized acquisitions in Africa.