Telecom Egypt Revenue Grows 15% during Q1

Telecom Egypt announced Wednesday that the total consolidated revenues amounted to EGP 7 billion during the first quarter of this year, with a growth rate of 15%, compared to the same period in the previous year.

The company attributed the growth, as a result of an increase in revenues of retail business units by 24% , supported by the increase in data services, which increased by 31% compared to the same period in the previous year.

Data showed a growth in the telecom's customer base at the level of all the services provided, as the number of fixed-line subscribers increased by 18% , the number of fixed-speed internet customers increased by 7%, and the number of mobile subscribers increased by 46%, compared to the same period in the previous year.

The statement pointed out, the stability of profit before interest, taxes, depreciation and consumption at EGP 2.3 billion, with a growth rate of 20% compared to the same period of the previous year, and achieved a profit margin of 33%, driven by the growth of revenues with high margins.

The operating profit of EGP 1.2 billion, with a growth rate of 4% compared to the same period in the previous year, supported by revenue growth, which erased the impact of the increase in depreciation and consumption expenses of 38% compared to the same period of the previous year as a result of the intensive work plan for infrastructure development.

Moreover, the net profit after taxes reached EGP 1.3 billion, a decrease of 19% from the previous year, as the decrease in investment revenues from Vodafone, which amounted to 28%, to reduce the impact of growth in operational performance and currency difference gains.

Capital expenditures represented 11% of the total revenue generated, while net debt recorded EGP 15.6 billion, attaining the ratio of net debt to profit before interest, taxes, depreciation and amortization on an annual basis of 1.7 times compared to 2.1 times at the end of 2019 (after neutralizing the impact of the early pension program ).