Telecom Egypt WE achieved record and historical profits during the year 2019.


According to ArabiaNet, the total consolidated revenues of the company amounted to 25.8 billion pounds, with a growth rate of 13% for the year 2018, mainly driven by growth in revenue related to data services across home business units, companies, institutions and the operators business unit.


The company showed a growth in its customer base at the level of all services provided, as the number of telephone and fixed internet subscribers increased by 11% compared to last year, and mobile subscribers increased by 33%. It also succeeded in implementing the early pension program, which included 3000 employees, at a total cost of 1.3 billion pounds.


According to the business results, the profit before interest, taxes, depreciation and amortization stabilized at 5.8 billion pounds, unchanged from the previous year. And achieving an amount of 7.1 billion pounds after neutralizing the effect of the early pension program, with a growth rate of 21% compared to the previous year, while the profit margin before interest, taxes, depreciation and consumption reached 28%, in line with our expectations for the year.


Net profit after tax jumped to achieve a growth rate of 33% compared to the previous year, achieving an amount of 4.4 billion pounds, driven by the strong revenues generated, currency difference profits and investment income from Vodafone, which negated the impact of the cost of the early pension program and the increase in depreciation and consumption expenses.


The capital expenditures amounted to 49% of the total revenue generated as a result of the intensive work plan to press the time period required to implement the program to replace the network from copper to fiber throughout the Republic to end by mid-June 2020, that is, within two years instead of four years.


While the net debt amounted to 15 billion pounds, achieving the ratio of net debt to profit before interest, taxes, depreciation and amortization (on an annual basis and after neutralizing the impact of the early pension program) amounted to 2.1 times compared to 2.2 at the end of 2018.


The company’s management has proposed distributing 0.25 Egyptian pounds per share for the fiscal year ending on December 31, 2019, provided that the proposal is presented to the general assembly.


The managing director and CEO of Telecom Egypt, Engineer Adel Hamed, said that during the past year, the company was able to provide the necessary liquidity to implement an important initiative to reduce costs, which is represented in the early pension program, as well as implement the necessary investments for the comprehensive development of infrastructure and raise the quality of Internet services in Egypt.


He explained that profit before interest, taxes, depreciation and consumption, after neutralizing the impact of the early pension program, has achieved double-digit growth supported by the increase in demand for high-speed data services in both wholesale and retail business units, for the company to achieve the largest net profit in its history of more than 4.4 billion pounds To reach 5 billion pounds after neutralizing the impact of the early pension program.

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