Telecom Egypt has announced its financial results for the first half of 2018.
Among the highlights, consolidated revenue crossed 10 billion Egyptian pounds for the first time, a rise of 16 percent from 2017. Much of the growth was driven by dataq services (up 45 percent) and fixed broadband.
However, net profit was down 18 percent from the same period in 2017 (to 2.1 billion Egyptian pounds), due to a decline in investment income from Vodafone Egypt and the impact of higher financing expenses.
Said group chief executive Ahmed El Beheiry: “We are extremely proud of this quarter’s operational performance. Telecom Egypt has been able to maintain its net profit [year-on-year] with a slight increase in Q2 2018 thanks to the management team’s effort to strictly follow the long-term strategy put before the [Board of Directors] at the beginning of the year and to overcome through operational efficiency the challenges of higher costs of marketing new products, the impact of Capex spending on depreciation and the higher borrowing costs.
“I am extremely pleased with the operating profit growth we achieved this quarter of 26 percent [year-on-year], which has helped us to offset all the base effect on the bottom line of being in a new investment phase. It is important to highlight that our strategy relies on targeted investments in order to fulfil our goals for the company and the country.
“Our main focus lies on three objectives: (1) the successful integration and monetisation of the newly established mobile business to boost growth, (2) overhauling Egypt’s internet infrastructure to provide the best service quality and induce revenue plus economic growth, and (3) to expand Egypt’s international network with the aim of enabling our vision of Egypt as a digital hub. Our ambitious investment strategy, while long-term in nature, has already shown results in H1 2018 with operational profit growing by 11% [year-on-year] in such a critical phase of the company’s history. We are extremely proud of such performance noting that the impact on net profit in H1 2018 is an expected by-product of such investment strategy and the high interest macro environment. “
He said more. “The events in the past few months were a direct reflection of our efforts to fulfil the aforementioned strategy. On the retail side: two critical product launches were introduced to the market; our mobile postpaid product ‘Indigo’ and our fixed broadband revamp to ‘WE Internet.’ Both products target to increase our share of wallet of the customer’s spending, while at the same time offer our customers a completely new top-notch experience. On the wholesale front, several agreements were signed to secure our existing revenue streams, but also to improve our positioning in the mobile market. On the latter, we are very pleased to have been able to revise our national roaming agreement with Etisalat in our favour as well as to achieve asymmetric mobile termination rates through commercial agreements with Etisalat and Orange.”