Friday, May 15, 2009

Telecom Egypt Reports 72% Growth in Profits

Telecom Egypt reported a 72 percent rise in first-quarter net profit to EGP 962.4 million compared with a net profit of EGP 558.3 million in the first quarter of 2008. Operating revenues rose to EGP 2.53 billion from EGP 2.39 billion a year earlier. The firm's EBITDA and before provisions was EGP 1.35 billion.
The company has an Internet subsidiary TE Data and also has a minority stake in Vodafone Egypt. Total retail revenues for the first quarter of 2009 were EGP 1.468 billion, a modest increase of 2 percent compared with Q1 2008, while the access revenues, comprising connections and subscriptions, grew from EGP 459 million to EGP 536 million, as a result of tariff rebalancing which was only effective in the second half of 2008
Voice revenues declined 4 percent year-on-year to EGP 680 million for the first quarter, reflecting the increased pressure on this segment from the mobile market. However, the largest constituent of Telecom Egypt's voice revenues, derived from local calls, has seen a significant increase year-on-year.
As TE Data further increased its market share, revenues from internet and data continued to grow, up 27 percent year-on-year to reach EGP 146 million for Q1. In the first quarter alone, TE Data added 52,000 new DSL subscribers to reach 477,000 subscribers, an increase of 83% in comparison to the end of March 2008. Total fixed line subscribers were 11.6 million, as at 31 March growing by 2.6 percent year-on-year. Telecom Egypt's investment in Vodafone Egypt was good for a contribution of EGP 350 million.

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