TE reports net income, revenue increases in 3Q12

12 Nov 2012

Egyptian fixed line incumbent Telecom Egypt (TE) has revealed a 3.3% year-on-year increase in quarterly net profit for the three months ended 30 September 2012, on revenues that rose by 5.6% compared to a year earlier. For the period under review TE posted a consolidated net income of EGP633 million (USD103.4 million), up from EGP613 million in the third quarter of 2011, despite the telco reporting earnings before interest, tax, depreciation and amortisation (EBITDA) of EGP911 million, a y-o-y decline of 9.1%, which it attributed to cost increases related to ‘salaries, the back dating of interconnection costs due to the MobiNil agreement and higher maintenance costs’.

Consolidated quarterly revenues totalled EGP2.48 billion, up from EGP2.39 billion, with TE noting that turnover from its retail services amounted to EGP1.22 billion in 3Q12, up 5.4% against the same period of 2011. With the operator revealing that it had seen an overall decline in voice revenues, it said that the rate of decline was slowing as it continued to focus on expanding and enhancing its product range. For the quarter under review fixed voice revenue slipped by 12.4% to EGP365 million. However, the telco reported that revenues from its TE Data unit, which provides high speed broadband services, rose by almost 10% year-on-year, which it claimed more than offset voice revenue declines. Wholesale service revenue, meanwhile, stood at EGP1.25 billion in 3Q12, up 5.7% against the year-ago period.

In terms of customers, at the end of September 2012 TE’s broadband subscriber base stood at 1.256 million, representing a 4.2% year-on-year increase.

Commenting on the results, Mohamed Elnawawy, TE’s managing director and CEO, said: ‘TE continues to outperform its peers and exceed market expectations. We have delivered strong operational performance across our diverse business lines, which once again translated to an impressive set of financial results. With a healthy balance sheet and strong cash generation profile, we are well positioned and well financed to move forward against our objective of becoming a total telecoms operator as and when government licensing begins.’

Egypt, TE Data, Telecom Egypt