Egypt’s Masria Cards sees 2011 revenue up 47 pct
The company sees 110 million pounds ($19.25 million) of revenue in 2011.
October 19, 2010 11:04 by Reuters
Masria Cards, the first company to list on Egypt’s small-cap Nilex exchange, expects revenue to surge 47 percent next year as it reaps the benefits of a series of government contracts, a top executive said.
The company sees 110 million pounds ($19.25 million) of revenue in 2011, up from an estimated 75 million pounds in 2010, Rana Nafie, Masria Cards Executive Director, said at the Reuters Middle East Investment Summit in Cairo.
In 2008, Masria Cards, whose customers include mobile phone firms, hotels and banks, signed a 13.7 million pound contract with the government to supply the first smart cards for a new underground metro line in Cairo.
“The government contracts are the best performing sector in terms of revenue,” Nafie said.
“The metro contract included providing 2 million cards in the first phase. The traffic in the metro reaches 10-11 million passengers, or tickets … and will increase sharply when stations (on the new line) start working,” she added. Egypt’s government wants to boost the economy by developing public private partnerships (PPP) and by bolstering small and medium-sized companies, which account for about 70 percent of its gross domestic product. The metro deal, one of Masria’s largest, could make the card manufacturer a longer-term beneficiary of government tenders.
The firm also makes the state’s new electronic rationing cards for subsidised basic household commodities. Under the current system, Egypt provides ration cards for a basket of consumer goods to a large portion of its 78 million citizens.
The firm has contracts in Gulf states and Europe and plans to expand in some African countries by 2011, Nafie said.
“In 2011, if the marketing plans work well, I expect it (revenue) will be about 110 million pounds,” Nafie said.
Masria Cards’ net profit for the six months ended on June 30 jumped to 10.04 million pounds from 1.073 million pounds a year earlier, according to the company.
(Editing by David Cowell)