Telecom Egypt’s profits rise 1.7% in ‘improving’ business environment

14 May 2012

Egyptian fixed line monopoly operator Telecom Egypt has posted a 1.7% year-on-year rise in consolidated net profit to EGP912 million (USD151 million) for the first quarter of 2012, on revenues which climbed by 12% to EGP2.68 billion. The telco’s earnings before interest, tax, depreciation and amortisation (EBITDA) reached EGP1.39 billion in the three months to the end of March, representing a 52% EBITDA margin. As reported by Reuters, CEO Tarek Aboualam stated: ‘Following a turbulent year in 2011, the Egyptian business environment is showing signs of normalising. This is reflected in our revenue performance year-on-year and quarter-on-quarter.’ The Egyptian economy has suffered from political turmoil since Hosni Mubarak was ousted from power in February 2011 and a transition to democracy has been marred by violence and disagreement between political groups and the ruling military. Telecom Egypt also reported that Vodafone Egypt, in which it owns a 45% stake, made a positive contribution to the share of profits of EGP192 million in the first quarter.

Egypt, Telecom Egypt