With total revenues of 25.8 billion pounds and a percentage of 13%
Egypt in its history, and we are betting on the quality of services
and the regional digital strategy
Revenue growth..profits..customer base..service improvement and early
pension.. main features of business results
By: Nelly All - Nahla Muqalled
The company “Telecom Egypt” revealed its business results for the fiscal year ending on December 31, 2019, according to the consolidated
financial statements prepared in accordance with the Egyptian Accounting Standards, where the total consolidated revenues reached 25.8 billion pounds, with a growth rate of 13% over the previous year, driven mainly by growth In revenue associated with data services across home business units, companies, institutions, and operators business unit.
The company showed a growth in its customer base at the level of all the services provided, as the number of telephone and fixed internet subscribers increased by 11% compared to last year, and mobile
subscribers increased by 33%. The company also succeeded in implementing an early pension program that included 3000 employees with a total cost of 1.3 billion pounds.
Profit before interest, taxes, depreciation and amortization stabilized at an amount of 5.8 billion pounds, unchanged from the previous year. And achieving an amount of 7.1 billion pounds after
neutralizing the impact of the early pension program, with a growth rate of 21% compared to the previous year, while the profit margin before interest, taxes, depreciation and consumption reached 28%, in line with our expectations for the year.
Net profit after tax jumped to achieve a growth rate of 33% compared to the previous year, achieving an amount of 4.4 billion pounds, driven by the strong revenues generated, currency difference profits
and investment income from Vodafone, which negated the impact of the cost of the early pension program and the increase in the expenses of
depreciation and consumption, as well as capital expenditures amounted to 49% of The total revenue generated as a result of the intensive work plan to press the time required to implement the program to
replace the network from copper to fiber throughout the Republic to end by mid-June 2020, that is, within two years instead of four years.
Net debt reached 15 billion pounds, achieving the ratio of net debt to profit before interest, taxes, depreciation and amortization (on an annual basis and after neutralizing the impact of the early pension
program) of 2.1 times compared to 2.2 at the end of 2018, and the company's management has proposed distributing 0.25 EGP per share for the fiscal year Ended December 31, 2019, provided that the proposal is presented to the General Assembly.
For his part, Engineer Adel Hamed, Managing Director and CEO of Telecom Egypt, said on the results of the company's business for the fiscal year 2019, “Telecom Egypt managed to end the year 2019 with strong performance and outstanding financial results, and the company was able to provide the necessary liquidity to implement an important initiative to reduce costs, which is represented in Early pension program, as well as implementing the necessary investments for the comprehensive development of infrastructure and raising the quality of Internet services in Egypt.
Profit before interest, taxes, depreciation and consumption, after neutralizing the effect of the early pension program, has achieved a two-digit growth, supported by the increase in demand for high-speed
data services in both wholesale and retail business units, for the company to achieve the largest net profit in its history of more than 4.4 billion pounds to reach To 5 billion pounds after neutralizing the
effect of the early pension program.
The main features of the company's business results during 2019 were revenue growth, recording the largest net profit, in addition to increasing the customer base, improving services, and an early pension program. The quality of services and the regional digital strategy also contributed to achieving this outstanding financial performance.
Our focus this year was on fully preparing for the digital future, whether inside Telecom Egypt or across the country, we have fully committed to the main pillars that were designed to develop Telecom Egypt to become an integrated provider of telecommunications and information technology ervices at the local and international level that strengthens Egypt's position as a digital center Regional, total
capital expenditures for this year amounted to 12.7 billion pounds, reflecting our strong commitment to developing our infrastructure, which paid off in the form of unprecedented commercial success for the
WE SPACE system, which provided unparalleled speeds in the market and You continued implementation of the national initiative to link the
provinces of fiber-optic (Alfabir), which underlines the company's determination to enhance the development and goals of providing premium services to its customers the best experience.
Take advantage of this opportunity to confirm our position towards the potential deal between Vodafone International and STC, where Telecom Egypt affirms that all options and opportunities are open to it to make a thoughtful decision that serves the interests of its shareholders with regard to its investments in Vodafone Egypt, we have worked hard to ensure All our legal rights are enforceable and our decision is based on what is in the interest of the shareholders, which is what we always adhere to, as we see that there are multiple opportunities in each of the options presented, whether by achieving
economic savings or an immediate return on investment in a way that guarantees the exploitation Such as the Company's assets to generate
returns for shareholders.
Today the Board of Directors approved the use of a strong alliance that includes EFG Hermes and Citi as an investment advisor and Tamimi and Co as a legal advisor to ensure .