Telecom Egypt records 12% revenue increase in 1Q22

31 May 2022

Telecom Egypt has posted a double digit revenue increase for the opening three months of 2022, with the company saying that growth had been ‘mainly fuelled by higher data revenue constituting 74% of top line growth, followed by higher cable and voice revenues’.

In the three months ended 31 March 2022 it recorded a total turnover of EGP9.417 billion (USD506 million), representing a 12% increase from the EGP8.399 billion reported for Q1 2021. With regards to a breakdown of revenue, the lion’s share – EGP5.001 billion, up from EGP4.191 billion – was attributable to ‘Home & Consumer’ operations. Strong growth was also recorded in the ‘International Customers & Networks’ unit, meanwhile, which saw revenues rise by almost 20% year-on-year to reach EGP797 million. EBITDA, meanwhile, reached EGP3.578 billion in 1Q22, up from EG3.235 billion in the corresponding period a year earlier. Net profit was, however, down 36% y-o-y at EGP1.366 billion, a drop that the company said was ‘due to non-operational items’. According to Telecom Egypt, excluding such items including Vodafone Egypt’s one-offs, provisions, impairments and FX impact, net profit was EGPY1.7 billion, broadly flat on an annualised basis.

In terms of operational highlights, Telecom Egypt reported that its mobile subscription total had surpassed a notable milestone, topping ten million in the period under review to reach 10.162 million as of 31 March 2022, up from 8.519 million a year earlier. Fixed broadband subscriptions also remained on an upward trajectory, increasing to 8.295 million at the end of 1Q22, up 14.3% y-o-y, while fixed voice subscriptions rose to 11.174 million from 10.045 million.

Commenting on the results, Adel Hamed, Telecom Egypt’s Managing Director and CEO, said: ‘I am very proud with Telecom Egypt’s operational and financial performance during this quarter on all fronts despite encountering some challenges from global headwinds.’

Egypt, Telecom Egypt