Telecom Egypt reports revenue increase in 3Q13

14 Nov 2013

Telecom Egypt (TE) has published what its chief executive officer claimed were a ‘strong set of financial and operational results’ for the three month period ended 30 September 2013, with the telco recording a 16% year-on-year increase in revenues.

In the third quarter of 2013 TE generated a total turnover of EGP2.862 billion (USD408.7 million), up from EGP2.477 billion a year earlier, with such growth driven by increased revenues from the company’s ‘International Carriers Affairs’ and ‘International Customers & Networks’ divisions, which registered annual revenue increases of 26.2% and 433.5%, respectively. Revenues from the telco’s domestic residential customers rose by 1.1% against 3Q12, with the services generating EGP764 million in the quarter under review. This increase, TE said, reflected ‘increased demand for broadband services with faster speeds’. With the operator highlighting the fact that recent events in the country had limited business activity, resulting in fewer voice calls, enterprise revenues stood at EGP412 million, representing a 17.3% y-o-y drop.

EBITDA in 3Q13 totalled EGP1.131 billion, an increase of 23.7% compared to the year ago period, with growth attributed mainly to the increase in revenues between the comparative periods, while EBIT in the quarter reached EGP845 million, up from EGP655 million in 3Q12. Net profit, meanwhile, totalled EGP650 million, up marginally from EGP636 million. Capital expenditure in the third quarter of 2013 totalled EGP100 million, down from EGP127 million reported in the previous quarter, with the drop said to be mainly due to the ongoing political unrest in the country, which in turn had led to ‘delays experienced through some of TE’s major supplier contracts.’

In separate but related news, Reuters cites Telecom Egypt CEO Mohamed el-Nawawy as saying that he was confident the government would grant the telco a unified operating license under which it will be able to provide mobile voice services by the end of this year. ‘We see a reason to be confident that such a license would be issued within 2013,’ the executive reportedly said.

Egypt, Telecom Egypt