Telecom Egypt revenues, net profit drop in 2Q12

8 Aug 2012

Telecom Egypt (TE) has released its financial results for the three months ended 30 June 2012, with the fixed line incumbent posting a more than 32% quarter-on-quarter decline in net profit on revenues that fell by almost 11%. In the company’s second quarter of the 2012 fiscal year it posted a consolidated net income of EGP613 million (USD100.9 million), down from EGP912 million in the same period a year earlier. Turnover for the three-month period meanwhile stood at EGP2.388 billion, representing a 10.9% q-o-q decline against 1Q12, while TE noted that this figure represented a 7.9% drop compared to the same quarter of 2011. In drawing the comparison, TE did however note that both the first quarter of 2012 and the second quarter of 2012 were ‘exceptionally strong as a result of sizeable contributions from international cable projects, which distort any like for like comparison between the periods.’ Earnings before interest, tax, depreciation and amortisation (EBITDA) for 2Q12 totalled EGP900 in the second quarter of 2012, down 27% compared to 2Q12, with the decline being attributed to lower revenues, coupled with the ‘combined effect of a restructuring and annual increase of salary arrangements’.

In operational terms, at the end of June 2012 reported an ADSL subscriber base of 1.205 million, up from 1.017 million a year earlier, with average revenue per user (ARPU) standing at EGP57.6 per month.

Egypt, Telecom Egypt