Telecom Egypt Co. posted Tuesday a 48% year-on-year increase in its consolidated revenue to reach $453.1 million (EGP 14 billion) in the first quarter of the year as the company registered growth across the board, especially wholesale units.
Wholesale units constituted 70% of the total growth, backed by 86% higher infrastructure revenues year-on-year and growing USD-denominated revenue streams, its latest financial statement showed. Excluding non-operating one-offs, net profit during the quarter surged 144% year-on-year to $132.7 million (EGP 4.1 billion), thanks to healthy margins and increased investment income that overshadowed the higher depreciation & amortization (D&A) and finance costs.
Telecom Egypt's customer base grew across the board during the first three months of 2023, with fixed voice and broadband expanding by 5% and 7% year-on-year, respectively. Mobile customers increased by 22% compared to the same quarter a year earlier to reach 12.4 million in Q1. Earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 72% year-on-year, notching $197.4 million (EGP 6.1 billion) and reflecting a robust margin of 44%, mainly driven by high-margin revenues. Adjusted operating profit for the quarter soared 101% year-on-year on strong operational performance, allowing the company to offset the 31% higher D&A costs.
This month, the Egyptian government sold a 9.5% stake in Telecom Egypt and raised $119.7 million (EGP 3.7 billion) from the share sale. It further plans to offer about 0.5% stake to the company employees.
Telecom Egypt, ranked 83rd on Forbes Middle East's Top 100 Companies 2022 list, also holds a 45% stake in Vodafone Egypt, which officials reportedly considered selling—in total or in part—to Gulf-based investors.
Telecom Egypt said in January that the National Telecom Regulatory Authority (NTRA) accepted its financial and technical offer to obtain an additional five megahertz (MHz) spectrum in the 1800 MHz band.
Later in March, the telecom operator announced the appointment of Mohamed Nasr Eldin as Managing Director and CEO of the company to succeed Adel Hamed.
More recently, the company unveiled the landing of the 2Africa subsea cable in Port Said, marking the second and final 2Africa landing in Egypt. The development came five months after the first landing in the Red Sea city of Ras Ghareb.
