Telecom Egypt Unveils its 2022 Budget

Telecom Egypt’s board of directors have approved its 2022 with the guidance for the coming year to be under the following KPIs:

• Early double digit revenue growth
• EBITDA margin in the mid to high thirties
• In-service CapEx-to-sales ratio in the mid-twenties
• FCFF to EBITDA of early double-digit

The Managing Director and Chief Executive Officer of Telecom Egypt, Adel Hamed commented on the budget saying,

“Telecom Egypt’s 2022 budget foresees another year of strong operational and financial performance. The strong data momentum witnessed during the pandemic has persisted throughout 2021 and is expected to continue to drive the company’s top line growth during 2022. Our data performance will also continue to drive direct and indirect growth across our business lines, opening up new opportunities for us to grasp by capitalizing on our enhanced infrastructure services, international presence, and cost optimization efforts, which will ultimately filter through to healthy margins and higher profitability.

Going forward, our CapEx cycle is expected to slow down as we have nearly completed our copper-to-fiber replacement program. We plan to diversify our investments to include our mobile network, data centers, and internal system upgrades to grow our service portfolio and enhance customer experience. Additionally, we plan to follow through with our financing strategy to deleverage over time while enhancing our financing cost.

We expect our free cash flow to grow during the upcoming year on the back of strong operational cash flow, CapEx rationalization efforts, and certainty on dividends from Vodafone. This will support us in maximizing shareholder value while we tackle our strategic goals of becoming a leading ICT provider and a facilitator of Egypt’s plan to become a regional digital hub.”

Adel Hamed, Managing Director and Chief Executive Officer, Telecom Egypt