07 Mar Egypt; Currency movements help Telecom Egypt increase full-year turnover by 33%
Telecom Egypt (TE) has posted a 33% year-on-year increase in consolidated revenues in the year to 31 December 2017, attributed to significantly higher turnover from its wholesale services, which was bolstered by the devaluation of the Egyptian pound against the US dollar. With the telco reporting a total turnover of EGP18.6 billion (USD1.1 billion) for FY 2017, it noted that even when normalising for the foreign exchange impact, it still recorded revenue growth of 13% y-o-y. EBITDA in the twelve-month period under review was up 36% at EGP5.2 billion, with an EBITDA margin of 28% (FY 2016: 27%). Meanwhile, net profit for FY 2017 totalled EGP3.2 billion, representing annualised growth of 18% from the EGP2.7 billion reported a year earlier.
In operational terms, at the end of December 2017 TE had 4.07 million broadband subscribers on its books, up from 3.38 million a year earlier, while fixed voice accesses reached 7.15 million, up from 6.46 million. More significantly, the company has made a strong start in the mobile arena; having launched its ‘WE’-branded services in September 2017, TE confirmed that by end-2017 it had signed up 2.30 million wireless subscribers, up from 352,000 at the end of 3Q17.