Telecom Egypt Yields 4.4 Billion Pounds in Profits

Telecom Egypt announced its business results for the fiscal year ending December 31, 2019, according to the consolidated financial statements.

*These are the most important results work indicators for the fiscal year 2019:

- The total accumulated revenues amounted to EGP 25.8 billion, with a growth rate of 13% over the previous year; it was mainly driven by growth in revenues related to data services across home business units, companies, institutions and the operators business unit.

-The company showed a growth in its customer base at the level of all the services provided; the number of telephone and fixed internet subscribers increased by 11% compared to last year, and mobile subscribers increased by 33%.

Also, the company succeeded in implementing the early pension program, which included 3000 employees with a total cost of 1.3 billion pounds.

Meanwhile, profit before interest, taxes, depreciation and amortization stabilized at EGP 5.8 billion, unchanged from the previous year.

The company also achieved an amount of 7.1 billion pounds after neutralizing the impact of the early pension program, with a growth rate of 21% compared to the previous year. The profit margin before interest, taxes, depreciation and consumption reached 28%, in line with earlier expectations for the year.

Net profit after tax jumped up to achieve a growth rate of 33% compared to the previous year, achieving an amount of 4.4 billion pounds, driven by the strong revenue generated, currency difference profits and investment income from Vodafone.

This increase negated the impact of the cost of the early pension program and the increase in the depreciation and consumption expenses.

Capital expenditures amounted to 49% of the total revenue generated because of the intensive work plan.

To press the period required to implement the program to replace the network from copper to fiber throughout the Republic to end by mid-June 2020, that is, the company is striving to put it in place within two years instead of four years.

On other hand, Adel Hamed the Managing Director and Telecom Egypt CEO, said that Telecom Egypt managed to end in 2019 with strong performance and outstanding financial results.

Hamed added, “The company was able to provide the necessary liquidity to implement an important initiative to reduce costs, represented in the early pension program; it also implemented the necessary investments for the comprehensive development of infrastructure and raise the quality of Internet services in Egypt