Telecom Egypt's turnover up 7.7% in 1Q15

14 May 2015

Telecom Egypt, the country’s fixed line incumbent, has released its financial report for the first three months of 2015, with the telco revealing that consolidated revenues in the period under review totalled EGP2.761 billion (USD367 million), up from EGP2.564 billion a year earlier.

Telecom Egypt’s ‘Home Business Unit’ saw turnover rise by 10.1% year-on-year to EGP841 million, with this having been mainly driven by increased demand for data services, while the telco also highlighted ‘accelerating customer additions and accordingly elevating data revenues’ as having helped offset a decline in traditional national voice revenues. Meanwhile, the telco’s ‘Enterprise Solutions Business Unit’ recorded revenues of EGP379 million in the three months ended 31 March 2015, down from EGP393 million a year earlier, with the decline attributed to some revenue reclassifications that came into effect during Q1 2015 and the unit’s discounted promotional activities. ‘Domestic Wholesale Business’ revenue by comparison fared far better, increasing by more than 17% year-on-year to stand at EGP640 million in 1Q15.

EBITDA in the first quarter of 2015 amounted to EGP694 million, representing a decline of 13.7% compared to the same period a year earlier; this drop, Telecom Egypt said, was directly attributable to higher costs. Net profit after tax meanwhile was EGP604 million, up from EGP594 million in 1Q14.

With regards to the company’s performance in the first quarter of 2015, Telecom Egypt chief executive Mohamed Amin El-Nawawy said: ‘Retail revenues continued to grow, with data revenues offsetting the inevitable decline in traditional voice revenues, which again was the catalyst for [the company’s] massive investment plan to upgrade its infrastructure from copper-based technologies to today’s state-of-the-art fibre-based technologies.’

Egypt, Telecom Egypt