Telecom Egypt publishes second quarter financials

Mergers, Acquisitions and Financial Results

Telecom Egypt (TE) reported consolidated revenues of EGP3.025 billion (USD385 million) in the quarter ended 30 June 2015, representing year-on-year growth of 9.6%. Turnover generated by the company’s ‘Home Services’ accounted for the largest portion of total revenues, 29%, bringing in EGP877 million in 2Q15, up from EGP779 million in the corresponding period a year earlier. Domestic wholesale revenues were also up, rising from EGP692 million in 2Q14, to EGP699 million a year later. TE’s ‘Enterprise Solutions Business Unit’ meanwhile experienced an overall decline in revenues year-on-year, with turnover falling by 6.4% to EGP511 million in 2Q15, impacted in part by ‘ongoing discounted promotional activities from the start of the year’. More notable was an 84% y-o-y drop in turnover attributed to the company’s International Customers & Networks Business Unit; with revenues for this unit totalling just EGP165 million in 2Q15, down from EGP1.03 billion a year earlier, TE noted that this drop was ultimately due to it having reported an ‘exceptional’ second quarter in 2014, when it concluded two major non-recurring transactions with the SMW-5 cable system and AAE1 cable system, respectively.
EBITDA in the period under review totalled EGP881 million, representing a 49.1% decline from EGP1.730 billion in 2Q14, while net profit after tax was EGP378 million, up from EGP243 million. Capital expenditure for the second quarter of 2015 meanwhile reached EGP567 million, an increase of 51% when compared to the corresponding period a year earlier.
Commenting on the results, TE’s chief executive Mohamed Amin El-Nawaw was cited as saying: ‘Today’s results for the second quarter 2015 are a good indicator of both the environment in which we operate and the ongoing modernization of Telecom Egypt, as we continue to serve the evolving telecommunications needs of our customers and fulfil our customer-centric approach …With the understanding that the first half of 2014 brought with it a number of non-recurring revenues, the overall performance has been healthy over the last quarter. We have reported a significant increase, in net profit compared to last year.’