Telecom Egypt reports 88% y-o-y net profit increase in 1H21

11 Aug 2021

Telecom Egypt has published a strong set of financials for the first half of 2021, with the company reporting growth in all key metrics, prompting its CEO Adel Hamed to say: ‘I am very proud of our performance during the first half of the year, as we continue to deliver on our growth targets; both operationally and financially.’

For the six months ended 30 June 2021 Telecom Egypt reported consolidated revenue totalling EGP17.373 billion (USD1.1 billion), representing year-on-year growth of 16%, driven by a 31% annualised increase ‘in data followed by voice and other enterprise revenues’. Telecom Egypt’s ‘Home & Consumer’ division generated the greatest portion of the total – EGP8.629 billion, up from EGP6.759 billion in H1 2020 – while a notable increase in ‘Enterprise’ revenue was also reported, with this rising by 21% y-o-y to EGP2.321 billion. Meanwhile, Telecom’s EBITDA for H1 2021 totalled EGP6.729 billion, up from EGP5.041 billion in the corresponding period a year earlier, while net profit surged by 88% y-o-y to EGP3.872 billion, with the company attributing this to ‘a strong operational performance, growth in investment income from Vodafone, and [foreign exchange] gains’.

Operationally, Telecom Egypt saw continued customer growth in both fixed voice and broadband; in the latter sector it reported a customer base of 7.221 million as of 30 June 2021, up from 6.098 million a year earlier, while fixed voice accesses rose to 9.083 million (Jun-20: 8.493 million). Mobile subscriber numbers were also up on an annualised basis, climbing by just over 21% to 8.140 million as of mid-2021, though that figure did represent a 4.4% drop from the 8.516 million customers it was serving at 31 March 2021.

Egypt, Telecom Egypt