Telecom Egypt announces 2007 results

13 Mar 2008

Telecom Egypt (TE) has announced its full year results for the twelve months ended 31 December 2007. Driven by strong demand for domestic and international wholesale services, revenues increased 5% to EGP9.9 billion (USD1.8 billion), whilst EBITDA (before provisions) rose to EGP5.3 billion from EGP5.2 billion at the end of 2006. EBITDA in 2007 was affected by a one off impairment charge relating to TE’s investment in Algeria based Lacom with TE reporting ‘after provisions’ EBITDA down 2.1% to EGP5.2 billion. ‘after provisions’ EBITDA margin was 52.3%. Consolidated net profit for the year rose 4.4% to EGP2.5 billion. Operationally, in 2007 TE reported a 4% rise in fixed line subscribers to 11.23 million, whilst its ADSL subscriber base leapt 141% to 222,166.

Vodafone Egypt, in which TE holds a 44.66% stake, reported net profit of EGP2 billion in the nine months ended December 31 2007, on revenues of EGP7.7 billion.

In a separate but related story, news agency Reuters reports that TE is keen to acquire a telecoms operator in either the Middle East or eastern Europe, adding that the telco would prefer to acquire an existing company rather than roll out new infrastructure.

Egypt, Telecom Egypt, Vodafone Egypt