Telecom Egypt reports better-than-expected 1Q net profit

14 May 2009

Egyptian incumbent Telecom Egypt (TE) has released its financial results for the three months ended 31 March 2008, posting a 72% rise in net profit for the period. TE reported net profit of EGP962.4 million (USD171.3 million), significantly ahead of expectations, while consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) also beat forecasts, rising 12% year-on-year to EGP1.35 billion. Group revenue increased 6% y-o-y to EGP2.52 billion, with TE noting strong performance from its internet and data services, where revenue was EGP146 million, a 27% increase against the same period last year. Voice revenue, however, fell 4% against end-March 2008 to EGP680 million, which the operator claimed was a result of the ‘increased pressure’ from the wireless sector.

Despite such pressure, TE reported that subscribers to its fixed line services increased 2.6% y-o-y to 11.55 million, although this was upstaged by an 83.5% increase in the operator’s number of high speed internet customers, which reached 476,544.

Egypt, TE Data, Telecom Egypt