Wholesale, broadband revenues offset fixed voice decline in 2010 for TE

11 Mar 2011

Turnover from internet, data and wholesale services helped offset declines in revenue from Egyptian fixed line incumbent Telecom Egypt’s (TE’s) traditional fixed line voice accesses in 2010. For the twelve-month period ended 31 December 2010 TE posted a total consolidated operating revenue of EGP10.138 billion (USD1.71 billion), up 3.6% year-on-year, with turnover from retail services accounting for 52%, or EGP5.379 billion, of the total. The telco noted, however, that turnover from retail services was down 6.7% y-o-y, a decline which it attributed to increased mobile usage by the country’s population, and in FY2010 total voice revenue declined 18.9% to EGP2.124 billion, but by contrast revenues from internet and data, mainly attributable to internet subsidiary TE Data, stood at EGP810 million, a 24.8% increase compared to 2009. TE did, however, note that having implemented a number of promotions to combat competition, total retail revenue in the last three months of the year was up 8.1% against the same quarter a year earlier. Total wholesale revenue in 2010 meanwhile reached EGP4.939 billion, representing an annual increase of EGP742 million, or 17.7%. Earnings before interest, taxation, depreciation and amortisation (EBITDA) for the twelve month period were EGP4.9 billion, while TE’s consolidated net profit for full year 2010 was EGP3.309 billion, a year-on-year increase of 8.5%.

As at 31 December 2010, TE claimed that TE Data had a 63% share of the Egyptian retail ADSL market, and said that during 2010 it had added 257,922 ADSL subscribers, taking its total customer base to 883,171. Fixed line accesses continued to decline, falling from 9.6 million in 2009 to 9.3 million in 2010.

Egypt, TE Data, Telecom Egypt