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.