Subscriber gains and ‘healthy ARPU trends’ help boost Telecom Egypt revenues

11 May 2021

Telecom Egypt has reported a consolidated revenue of EGP8.399 billion (USD535 billion) for the quarter ended 31 March 2021, representing a 20% year-on-year increase, with the company saying growth had been driven by ‘increased subscriptions and healthy ARPU trends, followed by higher infrastructure and voice revenues’. Of its total turnover, Telecom Egypt reported that its ‘Home and Consumer’ division generated the largest portion, EGP4.191 billion, up from EGP3.131 billion in 1Q20, while its ‘Enterprise’ unit saw the largest percentage increase in revenue terms, generating EGP1.129 billion, up from EGP786 million in 1Q20.

Meanwhile, Telecom Egypt recorded a 42% y-o-y increase in EBITDA, which increased to EGP3.235 billion in 1Q21, while operating income rose by 86% to EGP3.078 billion. Net profit after tax (NPAT) also saw a notable annualised improvement, rising to EGP2.124 billion in 1Q21, from EGP1.312 billion in the corresponding quarter of 2020, with the company attributing this to its strong operational performance and the doubling of investment income from Vodafone Egypt.

In operational terms, Telecom Egypt ended March 2021 with a total of 7.257 million fixed broadband accesses on its books, representing a 22% y-o-y increase, while fixed voice lines rose by 7% to 10.045 million. The company also reported sizeable gain in the mobile sector, reporting a total of 8.516 million mobile subscribers as of 31 March 2021, up 38% against the 6.181 million it had a year earlier.

Commenting, Adel Hamed, Telecom Egypt’s Managing Director and Chief Executive Officer, said: ‘I am very pleased with this quarter’s results as they reflect Telecom Egypt’s ability to preserve its growth momentum witnessed during 2020 and report strong financial and operational results … The main growth driver continues to be data, both fixed and mobile, and we have witnessed growth in customer numbers and spending, which we continue to push by not only investing in our network, but also enhancing customer experience to solidify our leading position in the market.’

Egypt, Telecom Egypt