Telecom Egypt, a prominent player in the telecommunications industry, has announced its operational achievements for the financial period concluding on June 30, 2023. The results were presented in accordance with Egyptian accounting standards, as reflected in the consolidated financial statements.
In this successful H1 2023 period, Telecom Egypt saw an impressive 38% increase in consolidated revenues, reaching a remarkable EGP 28.1 billion. This substantial growth was primarily attributed to a notable 75% surge in revenues from wholesale business units, a pivotal contributor accounting for 71% of the overall revenue rise. The performance of retail business units further supplemented this positive trajectory.
Customer trust and base expansion were evident as Telecom Egypt showcased appreciable growth in its clientele across all services compared to the same period last year. Fixed telephone subscribers increased by 5%, while fixed high-speed internet customers saw an 8% rise. Mobile service subscribers reached an impressive 12.6 million, signifying a noteworthy 7% growth year-on-year (YoY).
Financially, Telecom Egypt showed strength with a 48% surge in profit before interest, taxes, depreciation and amortization, amassing EGP 12 billion. This achievement translated to a robust profit margin of 43%, bolstered by an upswing in revenues from high-margin services.
Operating profit showcased exceptional performance, escalating by 54% after excluding certain non-operational elements. This growth was instrumental in counterbalancing the impact of a 38% increase in depreciation and amortization costs.
Notably, net profit after taxes surged to EGP 6.7 billion, further reaching EGP 7 billion after neutralizing the influence of specific extraordinary items. This remarkable 67% YoY growth was underpinned by robust operational performance, increased investment income and effective management of higher financing costs.
Strategically, capital expenditures in service assets witnessed a significant 55% increase, amounting to EGP 4.5 billion compared to the previous year's corresponding period. This figure constituted 16% of total revenues. Meanwhile, cash capital expenditures, excluding licensing and frequency expenses, totaled EGP 11.2 billion, leading to a capital expenditure-to-sales ratio of up to 40%.
Despite a 43% inflation in total debt caused by a liability revaluation triggered by exchange rate fluctuations, the net debt-to-profit (before interest, taxes, depreciation and amortization) ratio remained stable at 1.4x. This was in line with the achievements of the previous fiscal year.
In response to these results, engineer Mohamed Nasr, the managing director and CEO of Telecom Egypt, highlighted the synergy between the company's optimal business model and its robust foothold in international telecommunications infrastructure. Nasr emphasized the company's ability to achieve outstanding financial and operational performance, thanks to the growth in data services, skilled human resources and an adaptive approach to economic challenges. The diversification of services, with a focus on wholesale business unit revenues, played a pivotal role in achieving the remarkable EGP 28 billion total revenue milestone.