Telecom Egypt (TE) witnessed a remarkable 30% increase in its revenues, reaching EGP 42bn in the first nine months of 2023 (9M 2023).
The company’s financial results released on Tuesday showed that this positive growth stems from a surge in international call revenues, amounting to EGP 4.3bn, doubling compared to the same period last year. This surge is attributed to a 12% increase in incoming calls and the appreciation of the dollar.
Cable revenues also experienced a significant 50% increase, reaching EGP 3.1bn, compared to the same period last year. This uptick is complemented by the continued growth in data services revenues for both fixed and mobile lines, reaching EGP 15.9bn, representing an 18% increase from the previous year.
TE’s customer base expanded across all service portfolios compared to the same period last year. Fixed-line telephone subscribers grew to 12.4 million, demonstrating a 9% growth rate. Landline broadband customers reached 9.3 million subscribers, representing an 8% increase. Mobile service subscribers also witnessed an expansion, reaching 12.5 million, achieving a 6% growth rate.
Net profit after taxes soared by 48%, reaching EGP 9.1bn, despite a 3.7-fold increase in financing costs. This substantial profit growth is attributed to a 67% increase in investment income, amounting to EGP 3.4bn.
Moreover, net debt stood at EGP 35.9bn, achieving a profit before interest, taxes, depreciation, and amortization (EBITDA) margin of 1.5 times on an annual basis, compared to 1.4 times in 2022. This favourable margin was achieved despite a 51% increase in total debt due to the reassessment of obligations in light of exchange rate fluctuations.
Net operating cash flows amounted to EGP 11.4bn, while total free cash flows reached negative EGP 2.3bn. This negative free cash flow is primarily driven by the increase in payments to suppliers to hedge against currency exchange rate fluctuations.
Looking ahead, Mohamed Nasr, Managing Director and CEO of Telecom Egypt, outlined the company’s strategy for 2024, which focuses on providing innovative solutions and options that ensure sustainable profitability.
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