Telecom Egypt recently reported its half-year financial results, revealing a 35 percent annual increase in revenues to EGP38 billion ($774 million) driven by an expansion in data revenue, retail, international direct dialing, and capacity sales.
The company’s customer base also saw growth across all segments with fixed voice and fixed broadband subscribers growing by 8 percent annually, while mobile subscribers increased by 4 percent year-on-year.
Telecom Egypt’s EBITDA reached EGP15.5 billion, up 29 percent annually and recording a margin of 41 percent. Despite inflationary pressures, the company’s revenue mix and cost optimization efforts maintained the EBITDA margin at target.
Retail segment drives growth
During the first half of 2024, the company’s net profit remained stable at EGP6.5 billion. In-service capital expenditure recorded EGP8 billion while cash capital expenditure reached EGP27.4 billion, representing around 80 percent of the total capital expenditure budget for FY 2024.
“Notably, our retail segment revenue soared by 40 percent YoY, driven by a 46 percent increase in data revenue and expansion across all retail segments,” stated Mohamed Nasr, managing director and CEO, Telecom Egypt.
The company’s international operations also witnessed remarkable growth with ICA and IC&N growing 58 percent and 28 percent, respectively. Egypt’s foreign currency appreciation and higher traffic volumes bolstered the telecom company’s growth despite inflation and rising costs impacting profits.
Read: Telecom Egypt partners with Nokia for 5G services in major cities
Leading regional data hub
Nasr added that Telecom Egypt aims to establish itself as a leading regional data hub and drive growth across all business fronts. Therefore, the company places great focus on enhancing the customer experience, maximizing the value of infrastructure and assets, and delivering superior returns for shareholders.
“As we look ahead, we are optimistic about the company’s future and believe that macroeconomic stability will positively influence our financial position,” added Nasr.
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