Telecom Egypt’s H1 2023 Results: Revenue Up 38%

Telecom Egypt has announced robust interim results for H1 2023, showcasing significant growth across key metrics. The company’s consolidated revenue saw a remarkable 38% year-over-year increase, reaching EGP 28.1 billion. The growth was primarily driven by a substantial 75% surge in wholesale revenue, accounting for 71% of the overall revenue growth, supported by a solid performance in the retail segment.

The telecom giant observed growth in its customer base, with fixed voice and broadband customers increasing by 5% and 8% respectively year-over-year. Mobile customers also grew by 7% to reach a total of 12.6 million.

Telecom Egypt’s EBITDA reached EGP 12 billion, reflecting a remarkable 48% YoY increase and a high margin of 43% due to an improved revenue mix. The company’s adjusted operating profit saw a 54% rise, driven by strong operational performance.

The net profit amounted to EGP 6.7 billion, while normalized net profit reached EGP 7.0 billion, showing an impressive 67% increase year-over-year. This growth was attributed to exceptional operational outcomes and higher investment income, which offset the rise in interest expenses.

Telecom Egypt’s in-service CapEx rose by 55% YoY to EGP 4.5 billion, constituting 16% of sales, while cash CapEx excluding license fees stood at EGP 11.2 billion, equivalent to 40% of sales. Despite a 43% increase in gross debt due to foreign currency exposure revaluation, the net debt/EBITDA ratio on an annualized basis remained steady at 1.4x compared to FY 2022.