Telecom Egypt posts US$129m in half year profits amid rising data, voice revenues

EGYPT – Telecom Egypt, Egypt’s primary telephone company has recorded consolidated profits of LE 2.059 billion (US$129 million) during the first six months of 2020 amid rising data and voice revenues, Egypt Today has reported.

According to Telecom Egypt’s half year financial statement, revenues hit LE 14.94 billion (US$ 937.94 million) during the first half of 2020, up from LE 12.69 billion (US$796.691 million) recorded in the same period of 2019.

Telecom Egypt’s noted that the rise in revenues represented an 18% YoY increase, boosted by a 37% YoY increase in data revenue, followed by growth in voice and infrastructure revenues.

The telecom’s customer base continued to grow YoY with a 20% YoY increase in fixed voice, 14% YoY in fixed broadband, and a 58% YoY increase in mobile customers, the latter reaching 6.7mn subscribers.

During the second quarter, the company recorded consolidated profits of LE 746 million (US$46 million), compared to LE 512 million (US$32.14 million) during the same period of 2019, marking an increase of 46 percent.

Adel Hamed, Group Chief Executive, commented: “The strong set of operational and financial results demonstrate the company’s remarkable ability to grasp the potential in the data market and monetize its massive network investments.”

Hamed further noted that Telecom Egypt’s “top line grew 18% YoY and filtered through to a healthy EBITDA margin of 34% thanks to the upsurge in data, infrastructure, and digital transformation revenues.”

“This exhibits that all our business units are strongly benefiting and capitalizing on investments made in prior years,” the Telecom Egypt CEO added.

The company’s board of members proposed distributing LE 0.25 per share for the fiscal year ending December 31, 2019.

Telecom Egypt operates within the telecommunication services sector, focusing on integrated telecommunication services.

It has subsidiaries operating across British Islands, Western Europe, Northern Africa and Middle East.

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