Telecom Egypt records 19% net profit drop in 1Q20, although sales climb 3%

12 Jun 2020

Telecom Egypt (TE) reported consolidated revenue of EGP7.00 billion (USD432 million) for the first quarter of 2020, representing a 3% year-on-year increase, attributing the growth mainly to strong retail performance and higher data revenue. In the three months ended 31 March 2020 turnover from TE’s Home & Consumer division represented the largest proportion (44.7%) of its total, EGP3.13 billion, up from EGP2.40 billion in 1Q19. Revenue generated by the Domestic Wholesale and International Carriers units reached EGP1.25 billion (down 5% y-o-y) and EGP1.13 billion (up 1% y-o-y), respectively, while Enterprise unit turnover was EGP786 million, up from EGP750 million. Rounding out the revenue breakdown, TE posted International Customers & Networks sales of EGP703 million in 1Q20, compared to EGP498 million a year earlier.

TE reported EBITDA of EGP2.28 billion for 1Q20, a 20% increase against the EGP1.90 billion recorded in the corresponding period of 2019. Net profit after tax totalled EGP1.3 billion, down 19% y-o-y, with the company saying this reduction was due to a ‘28% y-o-y decline in investment income from Vodafone resulting from one-off costs and provisions’, which had more than offset strong operational growth and foreign exchange gains.

In operational terms, at the end of March 2020 TE had 5.925 million fixed broadband accesses on its books, representing a more than 7% increase against the 5.535 million reported a year earlier. Of that figure, the lion’s share – 5.679 million, up from 5.248 million – were residential subscribers. With regards to the company’s mobile operations, it reported a customer base of 6.181 million as of end-March 2020, a more than 45% annualised increase from 4.247 million a year earlier.

Egypt, Telecom Egypt