Telecom Egypt's revenues up 12% in Q1

Results reflect a "normalising" business environment, says CEO
Telecom Egypt's results reflected an imporving business climate in the country, according to the telco's CEO.
Telecom Egypt's results reflected an imporving business climate in the country, according to the telco's CEO.

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Telecom Egypt, which runs fixed line and mobile services in Egypt, posted revenues of EGP 2.7 billion ($447m) in Q1 2012, an increase of 12% compared to the same period last year. The telco’s net profits increased by 1.7% to reach EGP 912 million, while EBITDA was EGP 1.4 billion, delivering a margin of 52%.

Telecom Egypt’s mobile arm, Vodafone Egypt, contributed a net profit of EGP192 million in the first quarter of the year. The unit finished Q1 with 37.2 million subscribers, a rise of 15.5% on the previous year.

By the end of Q1, Telecom Egypt’s total fixed line subscriber base stood at 7.9 million, of which 1.9 million were double-play subscribers. Retail ADSL subscribers reached 1.2 million, resulting in an ADSL market share of 61%.

Tarek Aboualam, CEO and MD, Telecom Egypt, said that the results the Egyptian business environment was showing signs of “normalising” following a turbulent 2011, and that this was reflected in the telco’s results.

“We have made a very positive start to 2012, with sound financial performance which beat market expectations, and good progress against our strategic objectives.”

He added that Telecom Egypt’s cost optimisation programme had also started to deliver “tangible benefits” by protecting margins. “We are building a platform for the future and it is critical to consider our progress against objectives. Firstly, Vodafone Egypt continues to consolidate its position as a market leader, growing its customer base to a record 37.2 million," he said.

“Elsewhere, TE Data’s broadband footprint leads the market, with on average more than 50,000 net new subscribers joining its service every quarter for the past three years. Our own direct double play subscribers have already, therefore, reached 1.2 million. Furthermore, our international cable business is already making a significant contribution to our wholesale revenues; this is a trend that we expect to continue.”

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