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.
