Telecom Egypt today announces its results for the first quarter of 2022 for the period ending March 31, 2022.
First Quarter 2022 Highlights
Consolidated revenue increased 12% year-on-year to EGP 9.4 billion. The growth was primarily driven by higher data revenues (+22% YoY) constituting 74% of revenue growth, followed by higher cable and voice revenues.
The customer base grew across the board, with fixed voice and data customers growing 11% and 14% YoY respectively, and mobile customers growing 19% YoY, crossing the 10 min mark.
EBITDA stood at EGP 3.6 billion, recording a solid margin of 38% thanks to an improved revenue mix and continued cost optimization.
Net profit landed at EGP 1.4 billion, down 36% year on year due to non-operating items. Excluding these items, including one-off items, provisions, impairments and the foreign exchange impact of Vodafone Egypt, net profit reached EGP 1.7 billion, almost flat year-on-year.
CapEx/sales in service recorded 16%, while cash CapEx reached EGP 4.8 billion, including the second tranche of new spectrum.
Net debt reached EGP 17.3 billion, or 1.2x of annualized EBITDA compared to 0.9x in FY2021 due to EGP devaluation, without which it would have fallen to 1 .1x, while the effective interest rate fell to 4.6%.
Adel Hamed, Managing Director and CEO, said:
“I am very proud of the operational and financial performance of Telecom Egypt during this quarter on all fronts, despite the difficulties encountered by the global headwinds. The company continued to record growth among its BUs, with growth revenue growth of 12% YoY and EBITDA margin reaching 38%, in line with our guidance Retail led growth (+16% YoY), driven by higher data revenues , driven by a growing customer base across all services and good ARPU trends.This growth has led to stable operating organic and net income year-on-year, managing to reduce the impact of the increase in D&A costs in light of new acquired spectrum and devaluation accounting treatment. We continue to focus on FCFF, which organically settled at EGP 0.7 billion, excluding payment of the slice of the new spectrum. The company was able to navigate through several challenges this quarter and we continue to expect growth across the P&L and thrive for additional revenue streams and cost optimization efforts to future-proof the anization organization and increase value for our shareholders. Our strategy to achieve these financial goals revolves around an improved customer experience, we have developed a comprehensive plan targeted at every customer touch point to move from improved service quality through refined products to consistent and convenient service. for all customer groups across our various business units. Such a plan will not only improve our value proposition to our customers, but also make us more efficient, available and ready for the future.”
Telecom Egypt Company SAE published this content on May 31, 2022 and is solely responsible for the information contained therein. Distributed by Audienceunedited and unmodified, on May 30, 2022 10:49:02 PM UTC.