Telecom Egypt demonstrated strong financial performance in the first half of 2024, with consolidated revenue surging by 35% year-on-year, reaching EGP 38bn. The key highlights include:
Data Revenue Surge: The growth was fueled by a 46% year-on-year increase in data service revenues across the Retail segment, constituting 48% of the top-line growth.
International Expansion: International Direct Dialing (IDD) and Capacity Sales revenues grew by 51% and 103%, respectively.
Customer Base Growth: Fixed Voice and Fixed Broadband subscribers increased by 8% year-on-year each, while Mobile subscribers grew by 4% compared to the same period last year.
EBITDA and Profit Margins: EBITDA reached EGP 15.5bn, with a margin of 41%. Despite inflationary pressures, cost optimization efforts maintained the EBITDA margin at targeted levels.
Net Profit and Investment Income: Net profit after taxes stood at EGP 6.5bn, with a profit margin of 17%. Investment income from Vodafone (which grew by 52% year-on-year) offset the impact of interest expenses and currency exchange losses.
Capital Expenditures: In-service CapEx recorded EGP 8bn (21% of sales), while Cash CapEx reached EGP 27.4bn, representing around 80% of the total budgeted for FY 2024.
Debt-to-EBITDA Ratio: It increased to 2.4x from 1.7x in 2023, mainly due to changes in foreign exchange rates.
Free Cash Flow: It was negative EGP 10.4bn, influenced by supplier payments and license fees. Excluding license payments and adding dividends received from Vodafone, free cash flow would have been negative EGP 958m.
Mohamed Nasr, Managing Director and CEO of Telecom Egypt, emphasized the company’s ability to adapt to economic challenges while achieving outstanding growth.
Overall, Telecom Egypt’s performance underscores its strong market position and commitment to delivering exceptional value to customers.
