TE see flat revenue in 9M10 as wholesale turnover helps offset retail declines

12 Nov 2010

Telecom Egypt (TE), the country’s monopoly fixed line voice provider, posted relatively flat revenues in the nine months ended 30 September 2010, with the operating citing year-on-year growth in wholesale turnover, a seasonality effect affecting TE’s retail business, and an increased contribution from its internet unit TE Data as contributory factors. In 9M10 TE generated revenues of EGP7.79 billion (USD1.35 billion), up 0.7% year-on-year, with turnover from retail services accounting for just over half of that, EGP4.04 billion, down 11% when compared to the same period a year earlier. Wholesale revenues however, helped to offset a significant portion of the lower retail revenues, climbing 17% in the year to reach EGP3.75 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at EGP3.99 billion, down 4% y-o-y which TE said was the result of increased employee and promotional costs. Net income for the nine-month period was EGP2.73 billion, up 6% against 9M09. Commenting on the results, Tarek Tantawy, the telco’s CEO and managing director, noted: ‘The period under review once again shows that we are delivering on our strategic objectives and continuing to create significant economic value for shareholders … Our growth strategy centres on investing in and growing businesses with attractive, market leading technology and executive management which can be relied upon to navigate the challenges thrown up by the intensification of competition.’

Egypt, TE Data, Telecom Egypt