Total consolidated revenues achieved a growth of 35% compared to the same period of the previous year, reaching EGP 38 billion. This was due to an increase in data services revenues in the retail business unit by a growth rate of 46% compared to the same period of the previous year, as it constituted 48% of the total revenue growth, followed by a growth in incoming international calls revenues and international capacity sales by 51% and 103%, respectively.
* The company showed growth in its customer base across all services provided, as the number of fixed-line and fixed-line internet subscribers increased by 8% year-on-year for each, while the number of mobile subscribers increased by 4% compared to the same period of the previous year.
* EBITDA grew by 29% YoY to EGP 15.5 billion with a 41% margin. Improved revenue mix coupled with cost rationalization efforts helped maintain EBITDA at target levels despite increased inflationary pressures.
* Net profit after tax reached EGP 6.5 billion, unchanged YoY, with a 17% margin. Vodafone’s strong operating performance and significant increase in investment income (up 52% YoY, supported by a price increase) mitigated the impact of a 2.6x YoY increase in interest expense and EGP 0.5 billion in FX losses during the period due to changes in foreign exchange rates.
* In-service capital expenditures amounted to EGP 8.0 billion (21% of total revenues), while cash capital expenditures amounted to EGP 27.4 billion, representing approximately 80% of cash capital expenditures for 2024. It is worth noting that the jump in cash capital expenditures is due in part to the increase in the foreign exchange rate, in addition to the concentration of most of the payments due for the current year during the first half of the year, as the value of payments to suppliers amounted to EGP 7.5 billion in the first half of 2024, representing 68% of the total obligations amounting to EGP 10.9 billion due for payment during the fiscal year 2024.
* Net debt to EBITDA ratio reached 2.4x compared to 1.7x in 2023, this increase is mainly due to the change in foreign exchange rates.
* Free cash flow was EGP-10.4 billion due to pressure from the EGP7.5 billion supplier payments in H1 2024 (representing 68% of the planned payments in the 2024 budget) in addition to EGP6.4 billion in licensing payments. Free cash flow would reach EGP-958 million if licensing payments are excluded and Vodafone’s cash dividends collected in July 2024, amounting to EGP3.1 billion after tax, are included.
