Key Takeaways:
- Significant Revenue Increase: Telecom Egypt reports a 39% year-over-year increase in consolidated revenue for the first nine months of 2024, driven by strong growth in data services and international business.
- Data Services Surge: Revenue from data services in the retail business unit increased by 46%, contributing significantly to the overall revenue growth.
- Subscriber Base Expansion: The company experienced growth in its subscriber base across mobile, fixed internet, and fixed voice services.
- Strong EBITDA Growth: Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 34% year-over-year.
Cairo, Egypt – Telecom Egypt has announced strong financial results for the first nine months of 2024, with a significant increase in consolidated revenue driven by robust growth in data services and international business.
The company reported a 39% year-over-year increase in total consolidated revenue, reaching LE 58.4 billion. This growth was largely fueled by a 46% surge in data services revenue from the retail business unit, highlighting the increasing demand for data services in Egypt.
“This growth was largely fueled by a 46 percent surge in data services revenue from the retail business unit, which contributed to nearly half of the overall revenue increase,” stated the report, emphasizing the significant contribution of data services to the company’s growth.
Telecom Egypt also experienced substantial growth in its international business, with revenues from international call traffic and capacity sales increasing by 61% and 90%, respectively.
The company’s subscriber base expanded across all service categories, with mobile, fixed internet, and fixed voice subscribers growing by 9%, 8%, and 4%, respectively.
EBITDA for the first nine months of 2024 increased by 34% year-over-year, reaching LE 23.5 billion, with a margin of 40%. However, net profit after tax declined by 6% to LE 8.6 billion, with a net profit margin of 15%.
Telecom Egypt’s capital expenditures remained high, with investments in in-service assets reaching LE 12.8 billion and cash capital expenditures totaling LE 30.1 billion. The company’s net debt-to-EBITDA ratio increased to 2.3 times, primarily due to fluctuations in foreign currency exchange rates.
Despite these challenges, Telecom Egypt reported improved free cash flow during the nine-month period compared to the first half of the year.
These results demonstrate Telecom Egypt’s strong performance in the Egyptian telecommunications market. The company’s focus on expanding its data services and international business is contributing significantly to its revenue growth and overall financial performance.
