Telecom Egypt has achieved a 35% year-on-year (YoY) increase in consolidated revenue for the first half (H1) of 2024, reaching EGP 38 billion, as reported by Managing Director and Chief Executive Officer Mohamed Nasr. This growth is largely driven by a 40% YoY rise in retail segment revenue, fueled by a 46% increase in data revenue and expansion across all retail segments.
Nasr highlighted the company’s resilience in navigating complex macroeconomic challenges, such as currency devaluation and inflationary pressures, while maintaining robust growth. Data services contributed 48% to the overall top-line growth, while international direct dialing (IDD) revenue surged by 51%, and capacity sales revenue grew by 103%. The customer base also expanded, with Fixed Voice and Fixed Broadband subscribers increasing by 8% YoY and mobile subscribers rising by 4% YoY.
Telecom Egypt’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for H1 2024 reached EGP 15.5 billion, a 29% YoY increase, representing 41% of the company’s revenue. The company’s effective cost management and strategic pricing adjustments helped maintain the EBITDA margin despite inflationary pressures.
Net profit for H1 2024 stood at EGP 6.5 billion, with a flat YoY growth and an implied margin of 17%. In-service capital expenditures (CapEx) amounted to EGP 8 billion, representing 21% of total sales, while cash CapEx reached EGP 27.4 billion, driven by foreign currency appreciation and vendor financing payments.
However, the company’s net debt in H1 2024 increased to 2.4 times its EBITDA, up from 1.7 times in the full year 2023, mainly due to currency depreciation. Free cash flow to the firm (FCFF) recorded a deficit of EGP 10.4 billion, impacted by vendor financing payments and license-related costs.
Telecom Egypt’s international operations, including ICA and IC&N, showed significant growth, with annual increases of 58% and 28% respectively, benefiting from foreign currency appreciation and higher traffic volumes.
Nasr emphasized the company’s commitment to optimizing future CapEx while ensuring continued business growth. He also outlined Telecom Egypt’s vision to establish itself as a leading regional data hub, enhance customer experience, and maximize the value of its infrastructure and assets.
Looking ahead, Nasr expressed optimism about the company’s future, believing that macroeconomic stability will positively impact Telecom Egypt’s financial position.
