Telecom Egypt posts LE 4.6B revenues, EBITDA hit LE 1.5B in Q2

CAIRO – 15 August 2017: Telecom Egypt’s (TE) consolidated revenues increased 41 percent or LE 3.3 billion ($185,718,056.35) year-on-year to reach LE 4.6 billion ($259 million) in the second quarter of 2017, a Tuesday statement said.

Earnings before interest, tax, depreciation and amortization (EBITDA) reached LE 1.5 billion, rising 39 percent in the second quarter of this year, delivering a solid margin of 32 percent.

“Our second quarter results demonstrate a continued momentum across the business with revenue growth and improved EBITDA,” CEO Tamer Gadalla said, adding “Retail services are once again the real driving force behind our top-line growth as our fixed broadband services and offerings continue to set the standard in the market.”
Net Profit after tax grew 22 percent to LE 1.3 billion representing a net profit margin of 27 percent. Earnings per Share (EPS) stood at LE 0.74 in Q2 and LE 1.53 for H1, reflecting an improvement of 13 percent compared to the first half of 2016.

Total Income from investments hiked 65.5 percent year-on-year, amounting to LE 1.2 billion during the first six months of 2017, driven by share of profit of equity accounted investees, mainly representing TE's stake in Vodafone Egypt.

Leading Retail ADSL market share amounted to 77 percent, with total subscribers of LE 3.7 million customers, the company said.

Capital expenditure recorded LE 1.3 billion in Q2 and net debt registered LE 4.8 billion by June 30, 2017.

Gadalla added that as per the firm’s five year business plan from 2018 to 2022, the company expects revenues to grow by a five-year compound annual growth rate (CAGR) of 11 percent, with an increasing contribution from mobile services reaching 16 percent by 2022.

Moreover, EBITDA Margin is projected to reach as high as the mid 20 percent, and a yearly CapEx to revenue ratio averaging 15 percent, the CEO highlighted.