Telecom Egypt announced today the results of its operations for the financial period ending on March 31, 2024, according to the consolidated financial statements prepared in accordance with Egyptian accounting standards.
The most important indicators of the results of the first quarter 2024 were as follows:
• Total combined revenues achieved a growth of 25% compared to the same period of the previous year to reach 17.5 billion pounds, as a result of the continued growth in data services revenues, which contributed to the total growth in revenues of 62% compared to the same period of the previous year, followed by sales revenues. International capacities and incoming international call revenues contributed to a growth rate of 17% and 11%, respectively.
• The company showed growth in its customer base across all services provided compared to the previous year, as the number of fixed-line telephone subscribers and fixed-line Internet customers increased by 9% and 8%, respectively, compared to the same period of the previous year, while the number of mobile service subscribers achieved a growth of 4%, reaching 13. One million subscribers.
• Profit before interest, taxes, depreciation and amortization achieved a growth of 19% compared to the same period of the previous year, achieving an outstanding profit margin of 42% to record an amount of 7.3 billion pounds. This increase reflects the general growth in operational performance and the strategic impact of increasing the prices of services provided.
• Operating profit achieved an amount of 3.6 billion pounds, a decrease of 5% compared to the same period of the previous year, due to the 41% increase in depreciation and amortization expenses compared to the same period of the previous year, in addition to the allocations that were made during this quarter.Net profit after taxes achieved an amount of 3.9 billion pounds, achieving a profit margin of 22% and a slight growth rate of 1.8% compared to the same period of the previous year, as the company’s strong financial performance was partially affected by the increase in interest, which is estimated at 2.2%. times compared to the same period of the previous year, the increase in depreciation and amortization expenses by 41%, and the stability of investment income from sister companies as a result of the change in exchange rates.
• Net free cash flows amounted to negative 4.7 billion pounds (1.6 billion pounds after excluding mobile license expenses), which shows that the ratio of free cash flows to profit before interest, taxes, depreciation, and amortization is negative 65%.
• Capital expenditures for in-service assets amounted to 1.6 billion pounds after excluding mobile license expenses (9% of total revenues), while cash capital expenditures amounted to 15 billion pounds, including mobile license expenses, 86% of total revenues.
• The ratio of net debt to EBITDA after excluding (value of supplier facilities) on an annual basis was 2.1 times compared to 1.9 times in the fourth quarter of 2023, despite the fact that total debt swelled significantly by 62% On a quarterly basis due to the revaluation of our obligations in foreign currencies without adding other loans.
Mr. Eng. Mohamed Nasr, Managing Director and CEO of Telecom Egypt, commented on the results of the first quarter of 2024, saying:
“We are pleased to continue achieving this significant growth at the beginning of the year. The financial and operational results in the first quarter of 2024 reflect the strength and stability of our business despite the current economic challenges. Revenues achieved a growth rate of 25% compared to the same period of the previous year to record 17.5%. One billion Egyptian pounds, which is the largest quarterly revenue achieved by the company to date. Earnings before interest, taxes, depreciation and amortization also achieved a growth of 19% compared to the same period of the previous year, amounting to 7.3 billion Egyptian pounds despite the impact of inflationary pressures.
In the coming period, we remain committed to improving free cash flows through several strategic efforts that include rationalizing capital expenditures without compromising the increasing growth of our business.
During this year, we will work to focus on achieving more cost rationalization initiatives and achieving optimal use of assets, especially those that generate dollar revenues. In addition, we will soon begin benefiting from the fifth generation license that the company obtained, which will enable us to provide more diverse offers. To serve our customers. I can say, with complete confidence, that we are ready for the next phase of growth in all areas of our business. We have many opportunities that we will seek to seize and implement in accordance with our strategy, focusing on our core strengths to provide better service to our customers and maximize the wealth of our shareholders.”
