Egypt Telecom to acquire 5% stake of mobile market in 2018

CAIRO – 12 March 2018: Beltone Financial expected that Egypt Telecom Company will acquire a five-percent stake of the mobile network market in 2018 with 5.2 million subscribers, according to Beltone’s research report.

The report further anticipated that the company’s market stake would increase to 12 percent by 2022 with 14.5 million subscribers.

Beltone said that it’s expected for Egypt Telecom to focus on post pay sector, getting benefit from its strong business unit of companies and organizations.

The report added that it would target home business unit subscribers as its land internet subscriptions reached 4.1 million in 2017.

It clarified that capital expenses increased to LE 10.7 billion in 2017, compared to LE 10 billion in 2016, attributing this increase to the payment of the mobile license and 4G generation charges; which were worth LE 5.2 billion in 2016.

The net debt increased to LE 6.7 billion by the end of 2017, compared to LE 2.1 billion in 2016. By the end of September 31, 2017, the net debt recorded LE 5.6 billion.

Egypt Telecom succeeded in adding 2.3 million subscribers by the end of 2017, according to Beltone’s report.

Beltone attributed the rise of the company’s revenues to the growth of all its sectors in the fourth quarter in 2017; as retailing revenues rose 36 percent on a quarter-on-quarter basis and wholesale revenues increased 6 percent on a quarter-on-quarter basis.

Egypt Telecom turned into profitability in the fourth quarter in 2017 at LE 1.1 billion, compared to net loss of LE 12 million in the same period in 2016.

On a quarter-on-quarter basis, the net profit increased by 11 percent.

The report said that the company recorded a net loss of LE 396 million, attributing this loss to allocations to settle disputes with mobile operators by LE 1.2 billion, exceptional costs for employees at LE 410 million, the rise of depreciation and amortization charges and the increase of finance expenses.

Telecom Egypt’s consolidated results increased 17.97 percent in 2017, recording LE 3.15 billion, compared to LE 2.67 billion in 2016.

While the company’s standalone results declined to LE 558.34 million in 2017, compared to LE 3.39 billion in 2016.

Telecom Egypt’s board of directors recommended cash dividend distributions to shareholders of LE 1.7 billion for 2017.

The board also proposed distributing a cash dividend of LE 1 per share for 2017 and retaining around LE 520.6 million for 2019.

Telecom Egypt is a public company, listed on Egyptian Exchange (EGX) since December 1999.

It operates within the Telecommunication Services sector focusing on Integrated Telecommunication Services.

It has 17 subsidiaries operating across British Islands, Western Europe, Northern Africa and Middle East. Telecom Egypt is based in 6th of October, Egypt and was established in January 1854.