Telecom Egypt revenue increase in 2013 driven by wholesale services

12 Mar 2014

Telecom Egypt (TE), the country’s fixed line incumbent, has published its financial results for the year ended 31 December 2013, reporting a 11% year-on-year rise in consolidated revenues. In the period under review TE generated a total turnover of EGP11.135 billion (USD1.6 billion), up from EGP10.032 billion in 2012. Revenues from domestic consumer services declined, however, falling by 1.1% to EGP2.985 billion, though this loss was more than offset by gains at its ‘Enterprise Solutions’ and ‘Domestic Wholesale’ units, which saw revenues increase by 1.7% and 7.6% respectively, to EGP1.765 billion and EGP2.271 billion. More notable though was the increase in turnover from the company’s ‘International Carriers Affairs’ and ‘International Customers & Networks’ divisions, which reported respective revenue increases of 26.0% and 44.7% in 2013. Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at EGP3.684 billion in FY 2013, representing a 1.4% decline against the previous fiscal year, with net profit for the twelve-month period coming in at EGP2.959 billion, up from EGP2.620 billion.

In operational terms, at the end of December 2013 TE had 5.72 million fixed voice lines in service, down by just over 8% from 6.24 million a year earlier. Fixed broadband accesses continued to climb, however, reaching 1.558 million at end-2013, representing a 23.2% increase from the 1.264 million reported for end-2012.

Commenting on the company’s performance in 2013, Mohamed Elnawawy, TE’s managing director and CEO, said: ‘2013 was an important year for TE. The strong financial performance we have delivered is testament to the early successes of our customer focussed strategy. We have defended and increased our top line, reaching more than EGP11 billion, while protecting margin … Demand for quality broadband services continues to be a key growth driver for retail service revenue and we are committed to delivering a new broadband network model which will enable us to carry more higher capacity traffic. In 2013, we started the EGP2 billion project, to upgrade TE’s access network from copper-based technologies, deploying four million ports connected on higher capacity fibre-based technologies, to be executed by year end 2015.’

Egypt, Telecom Egypt