Telecom Egypt's revenues increased by 41 percent to EGP 4.64 billion in the second quarter. EBITDA was up 39 percent year-on-year to EGP 1.48 billion, delivering a solid margin of 32 percent. The company said the growth was largely driven by the retail business segment and a growing demand for data services.
EBIT reached EGP 1.55 billion in Q2, reflecting an increase of 37.6 percent year-on-year, and net profit grew 22 percent to EGP 1.27 billion. Total income from investments grew by 65.5 percent year-on-year to EGP 1.20 billion during H1 2017, driven by TE's stake in Vodafone Egypt. Capital expenditure doubled to EGP 1.28 billion in Q2 versus EGP 649 million a year ago, representing 28 percent of total revenues for the period, while capex for the first half was EGP 1.783 billion.
Telecom Egypt said it took a 77 percent share of the retail ADSL market, with total subscribers of 3.65 million. The Home Services Business Unit continued its growth driven by increasing data revenues from a growing subscriber base and a focus on upselling new offerings for high-speed data bundles. Total data revenues for the second quarter were EGP 969 million, up by 44.6 percent from Q2 2016.
Total Home revenues for the second quarter were EGP 1.33 billion, up 31.8 percent year-on-year. The Enterprise Solutions Business Unit also benefited from the growing demand for data services and generated revenues up 25.9 percent to EGP 718 million. Revenues at the Domestic Wholesale unit increased by 6.8 percent to EGP 868 million, driven by the growing demand from mobile operators for TE’s infrastructure services. International carrier revenues were up 78.6 percent to EGP 1.33 billion, driven by the depreciation of the pound despite a 16 percent fall in incoming minutes.
Over the mid-term, Telecom Egypt expects a CAGR of 11 percent for service revenues in the period 2018-2022, with an increasing contribution from mobile services to reach 16 percent of revenue by 2022. The EBITDA margin is targeted at the mid to high 20s, and annual capex is expected to average around 15 percent of revenues. The company ended June with net debt of EGP 4.753 billion, including cash of EGP 2.159 billion.
Source: https://www.telecompaper.com/news/telecom-egypt-q2-revenues-grow-41-to-egp-464-bln--1208118