Adel Hamed: Telecom Egypt's revenues reach EGP 12.7 billion, up 25% year-on-year in the first half of 2019



  • 11% growth rate of fixed telephone subscribers .. 19% increase in

    broadband and 29% increase in mobile subscribers.

    2.9 billion pounds net profit after taxBooks

     

    by: Basil Khaled

    Telecom Egypt recently disclosed its financial results for the period

    ended 30 June 2019, in accordance with the consolidated financial

    statements prepared in accordance with the Egyptian Accounting

    Standards.

     

    Key indicators for the first half of 2019 included consolidated

    revenues of EGP 12.7 billion, a 25% growth over the same period last

    year, driven by an increase in data services revenue and an increase

    in sales of submarine cables, mainly PEACE cable revenues of USD 20

    million.

     

    The number of fixed-line subscribers increased by 11% compared to last

    year, and the number of fixed broadband customers increased by 19% and

    mobile subscribers by 29% over the same period last year.

    The company recorded a cost of LE 1 billion in the value of the

    entitlements of nearly 2,000 employees in accordance with the early

    retirement program, which led to a decline in EBITDA of LE 2.6 billion

    compared to the same period last year, while net profit after taxes

    stabilized to achieve LE 2.1 billion.

     

    After the neutralization of the impact of the application of the early

    pension program, EBITDA amounted to LE 3.6 billion, an increase of 11%

    over the same period of the previous year with a margin of 29%. The

    net profit after tax amounted to 2.9 billion pounds.

     

    The increase in net profit after tax by 41% compared to the same

    period of the previous year was due to several factors, most notably

    the gains in currency differences, the growth in operating income and

    the recovery of investment income from Vodafone.

    Capital expenditure accounted for 29% of the total revenue generated

    as a result of the launch of an intensive action plan to compress the

    time needed to implement the Infrastructure Efficiency Upgrading and

    Network Improvement Project for two years instead of four years for

    completion in 2020

     

    Net debt also recorded EGP 10.2 billion, posting EBITDA of 1.6 times

    year on year compared to 2.1 times in 2018.

     

    For his part, Eng. Adel Hamed, CEO and CEO of Telecom Egypt on the

    company's results for the second quarter of 2019, showed the

    outstanding financial and operational performance achieved by the

    company during this quarter, our ability to continue to implement our

    strategy successfully and maximize the return on investment by

    improving the level of services Provided to our customers, which is

    clearly reflected in the increase in data services revenue. Revenue

    from the PEACE cable agreement announced last April also contributed

    to a 24% increase in revenue growth over the same period last year.

     

    He added that we are pleased to launch the WE SPACE internet system

    which is a shift in the Egyptian Internet market by offering a range

    of high speed packages starting from 30 Mbps instead of 5 Mbps, which

    maximizes the benefit of our investment in the development of our

    networks.

     

    He continued to provide more services to our customers as the company

    laid the foundation stone for the provision of IPTV services across

    the republic as well as the launch of the application of electronic

    wallet via mobile WE Wallet, enabling the company to achieve

    leadership in the Egyptian telecommunications market as the first

    integrated operator of communications and information technology

    services .

     

    In conjunction with strong revenue growth, the company has

    successfully implemented several cost-cutting initiatives, including

    debt restructuring, which has resulted in lower funding benefits, and

    we have also activated an early pension program that will bring

    financial savings in the short term.



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