Telecom Egypt shows highest operating cash flow to date in Q2/2020 results

Its customer base continued to grow YoY with a 20% YoY increase in fixed voice, 14% YoY in fixed broadband, and a 58% YoY increase in mobile customers, the latter reaching 6.7mn subscribers.

I am very proud of Telecom Egypt’s performance this quarter as the strong set of operational and financial results demonstrate the company’s remarkable ability to grasp the potential in the data market and monetize its massive network investments. Our top line grew 18% YoY and filtered through to a healthy EBITDA margin of 34% thanks to the upsurge in data, infrastructure, and digital transformation revenues. This exhibits that all our business units are strongly benefiting and capitalizing on investments made in prior years, which have enabled our robust infrastructure to withstand unprecedented traffic growth from our different customer segments.”

Adel Hamed, Group Chief Executive

The results further show that the operating profit grew 27% YoY (adjusted for the ERP) while the net profit declined by 3%, reaching EGP 2.1bn, which was offset by the solid operational performance. Normalizing for the ERP, the FX loss, and one-off impairments, net profit would have grown by 4%.

We are closely monitoring our liquidity and financing costs to ensure that our shareholders recognize the returns that are expected from the very strong operational growth. On that front, net debt to EBITDA declined to 1.6x, flat YoY, and down from 2.1x in FY 19. This comes as a result of the significant operational growth that offset the 52% increase in gross debt.

Adel Hamed, Group Chief Executive