By: Sarah Noureddine - Mostafa Ibrahim
Telecom Egypt revealed that it achieved 42 billion pounds in combined revenues during the first nine months of 2023, achieving a growth of 30% compared to the same period of the previous year, driven by an increase in revenues from incoming international calls amounting to 4.3 billion pounds, which doubled. Compared to the same period of the previous year, as a result of an increase in incoming calls by 12% compared to the same period of the previous year and the rise in the price of the dollar, followed by a 50% increase compared to the same period of the previous year in cable revenues, which amounted to 3.1 billion pounds, in addition to the continued growth in revenues. Fixed and mobile data services amounted to 15.9 billion pounds, an increase of 18% compared to the same period of the previous year.
This came during the company’s presentation of its business results for the financial period ending on September 30, 2023, according to the consolidated financial statements prepared in accordance with Egyptian accounting standards, which included the most important indicators of the results of the first nine months of 2023, and the company showed growth in its customer base at the level of all services provided compared to the same. The period of the previous year, where the number of fixed telephone subscribers increased to reach 12.4 million subscribers, with a growth rate of 9% compared to the same period of the previous year, and the number of fixed Internet customers increased to reach 9.3 million subscribers, with a growth rate of 8% compared to the same period of the previous year, while the The number of mobile service subscribers reached 12.5 million subscribers, achieving a growth rate of 6% compared to the same period of the previous year.
The company explained that its profits before interest, taxes, depreciation and amortization (EBITDA) stood at 17.6 billion pounds, achieving an outstanding profit margin of 42%, supported by the increase in revenues from services with high margins. Operating profit also reached 10.6 billion pounds, achieving an increase of 23% compared to the same period of the year. The previous year, despite the increase in depreciation and amortization costs by 38% compared to the same period of the previous year.
The net profit after taxes achieved a growth of 48% compared to the same period of the previous year, reaching 9.1 billion pounds, despite the increase in financing costs by 3.7 times, thanks to the outstanding operational performance and the increase in investment income by 67%, which amounted to 3.4. One billion pounds. Capital expenditures for in-service assets amounted to 11.7 billion pounds, representing 28% of total revenues, while cash capital expenditures amounted to 18.4 billion pounds - including licensing and frequency expenses - with a capital expenditures-to-sales ratio of 44%, after excluding installments. The license is up to 37%.
The results revealed that net debt amounted to 35.9 billion pounds, achieving a percentage of profit before interest, taxes, depreciation and amortization on an annual basis of 1.5 times, compared to 1.4 times in 2022, despite the total debt inflation by 51% in light of the resumption of debt. Evaluation of liabilities as a result of exchange rate changes. Net operating cash flows amounted to 11.4 billion pounds, and total free cash flows amounted to negative 2.3 billion pounds, driven by the increase in payments to suppliers in order to hedge against currency exchange rate fluctuations.
For his part, Engineer Mohamed Nasr, Managing Director and CEO of Telecom Egypt, said that he is happy with the company’s financial performance for the first nine months of 2023, as we head towards the end of the year with strong performance, achieving total revenues of 42.0 billion pounds, as a culmination of the growth achieved at all levels. Business units, which reflects the company’s efforts towards continuing to improve the level of our services provided, as the revenues of the retail business units achieved revenues of 23.2 billion pounds, achieving a growth rate of 16% compared to the same period of the previous year, driven by the noticeable growth in revenues from fixed and mobile data services.
He added that sales of wholesale business units achieved revenues of 18.8 billion pounds, an increase of 52% compared to the same period of the previous year as a result of the growth of all services provided. We also recorded once again an increase in the customer base, and the profit margin before interest, taxes, depreciation and amortization reached 41%. 9%, and operating profit increased by 23% compared to the same period of the previous year.
