Proudly reporting the continuation of Telecom Egypt’s growth momentum at the beginning of the year, Mohamed Nasr Eldin, Managing Director and Chief Executive Officer, commented, “Our Q1 2024 operational and financial results reflect the resilience of our business in the face of macroeconomic challenges.”
Q1 2024 Key Highlights
Telecom Egypt’s top line increased by 25% year-over-year (YoY), reaching EGP 17.5 billion, recording the highest quarterly revenue to date. The consolidated Q1 2024 revenue was driven by continued growth in data, which accounted for 62% of total revenue growth, followed by capacity sales and IDD, contributing 17% and 11% respectively to revenue growth.
Moreover, the operator’s net profit reportedly reached EGP 3.9 billion, with a 22% margin, marking a modest 2% increase YoY, as the robust financial performance was partially offset. Conversely, Telecom Egypt’s operating profit landed at EGP 3.6 billion, down 5% YoY due to 41% higher D&A costs YoY.
The operator’s EBITDA also grew 19% YoY, amounting to EGP 7.3 billion, with a notable 42% margin. This performance underscores the company’s robust organic growth, including the impact of the strategic price adjustments.
“We remain committed to enhancing our free cash flow in the period ahead through several strategic initiatives, including the phasing out of our CapEx, without humbling the growth momentum we have achieved,” the CEO continued.
These notable results illustrate this commitment; the in-service CapEx, excluding the license fee, landed at EGP 1.6 billion (representing 9% of revenues), while cash CapEx, including the license fee, reached EGP 15.0 billion, recording an 86% cash CapEx to sales ratio.
Additionally, the net debt to EBITDA ratio (excluding vendor finance) was 2.1x in Q4 2023, up from 1.9x. This rise occurred despite a 62% quarter-over-quarter (QoQ) increase in gross debt due to the revaluation of foreign-currency debt.
“As the year progresses, we will focus on enhancing our cost efficiency and on monetizing our assets, particularly those that generate returns in foreign currency. In addition, we will soon begin to harness the power of our newly awarded 5G license and maximize the impact of our diverse commercial offerings for the advantage of our customers. I can confidently say we are poised for the next phase of growth across all areas of our business. We have many opportunities to pursue and will continue executing our strategy, focusing on our core strengths to better serve our customers, and increase shareholders' value,” concluded the CEO.
Notably, Telecom Egypt’s customer base grew across the board: fixed voice customers increased by 9% YoY, broadband customers increased by 8% YoY, and mobile customers rose by 4% YoY to reach a total of 13 million.
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