Egypt’s leading telecom operator, Telecom Egypt, has announced its audited financial results for the second quarter of 2024, highlighting a 35% year-over-year (YoY) increase in consolidated revenue, reaching a record of EGP 38.0 billion.
The company’s growth was emphasized by the data revenue of the retail segment which boasted a remarkable 46% YoY cash flow, contributing to 48% of top-line growth. Its International Direct Dialing (IDD) and capacity sales revenue also exhibited a notable increase of 51% and 103% respectively, constituting to the company’s financial development.
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Sustained Growth Despite External Factors
Commenting on the financial results, Telecom Egypt’s Managing Director and Chief Executive Officer, Mohamed Nasr, stated, “Telecom Egypt’s performance in the first half of 2024 exemplifies our resilience in navigating complex macroeconomic challenges, including currency devaluation and inflationary pressures, while sustaining robust growth.”
Underscoring the company’s strong market position and the effectiveness of its diversified service portfolio, Telecom Egypt’s CEO highlighted the company’s competitive edge and dedication to delivering exceptional value to its customers.
“Furthermore, our international operations, including ICA and IC&N, achieved remarkable annual growth of 58% and 28%, respectively, benefiting from foreign currency appreciation and higher traffic volumes. Despite the impact of inflation on rising costs, our EBITDA reached EGP 15.5 billion, with a margin of 41%, highlighting our adept cost management, effective infrastructure monetization and strategic price adjustments; in addition to leveraging the continuously-growing data market locally and internationally, which is considered one of the principle drivers for the company’s revenue growth,” he indicated.
Net profit reached EGP 6.5 billion, remaining nearly unchanged compared to the previous year, with a margin of 17%. Despite a 2.6x increase in interest expenses and EGP 0.5 billion in foreign exchange losses due to currency devaluation, strong operational growth and a 52% year-over-year increase in income from VFE, driven by recent price hikes, helped offset these pressures.
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Becoming a Leading Regional Data Hub
Reflecting on the company’s future, the CEO added, “Our vision for Telecom Egypt is to establish ourselves as a leading regional data hub and drive growth across all business fronts. We are focused on enhancing the customer experience, maximizing the value of our infrastructure and assets, and delivering superior returns for our shareholders. As we look ahead, we are optimistic about the company’s future and believe that macroeconomic stability will positively influence our financial position. We are confident that our strategic growth initiatives, resilient business model, and agile execution will continue to position us for sustained success and growth.”
Telecom Egypt is widely recognized for its significant role in the global telecommunications landscape, consistently maintaining a market-leading position by delivering advanced technology and robust infrastructure solutions. This accomplishment underscores the company’s commitment to driving digital transformation across Egypt through enhancing its service offerings and meeting global demands for improved connectivity.
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