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June 29, 2022


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Telecom Egypt achieves EGP 11.5 billion Net Profit in 2023

Telecom Egypt announced today the results of its business for the fiscal year ended December 31, 2023, in accordance with the consolidated financial statements prepared in accordance with Egyptian accounting standards.

The most important indicators of the results of the fiscal year 2023 * Total consolidated revenues achieved a growth of 28% compared to the previous year to reach 56.7 billion pounds, where data services revenues are the largest contributor to this increase by 18% compared to the previous year, followed by Infrastructure revenues, incoming international calls revenues and submarine cable projects by 27%, 76% and 64%, respectively.

* The company showed a growth in its customer base at the level of all fixed services provided compared to the previous year, where the number of fixed phone subscribers and fixed internet customers increased by 8% and 9% compared to the previous year, while the number of mobile service subscribers stabilized at the level of the previous year.

* Profit before interest, taxes, depreciation and amortization jumped to achieve a growth of 30% compared to the previous year, achieving an outstanding profit margin of 40% to reach 22.7 billion pounds, slightly exceeding management expectations as a result of outstanding operating performance and savings resulting from the new local roaming agreement, which limited the impact of rising costs affected by inflation.

* Operating profit increased by 28% compared to the previous year as a result of strong operating performance, which reduced the impact of the 27% increase in direct costs.

* Net Profit after taxes grew by 25% compared to the previous year, reaching EGP 11.5 billion. * Capital expenditures for assets within the service amounted to EGP 20.3 billion, up to 36% of total revenues, while cash capital expenditures amounted to EGP 26.4 billion, including licensing and frequency expenses.it is worth mentioning that cash capital expenditures include EGP 2 billion for the New Urban Communities Authority, the decent living initiative and digital transformation projects funded by the Egyptian government.

* Net operating cash flows amounted to EGP 16.9 billion, while total free cash flows amounted to EGP 3.6 billion as a result of the increase in capital expenditure payments to suppliers to hedge against currency exchange rate fluctuations.

* The ratio of net debt to profit before interest, taxes, depreciation and amortization on an annual basis was 1.7 times compared to 1.4 times in 2022, as a result of exchange rate changes, as 66% of loans are in foreign currency.

• The board of directors proposed a dividend of 1.5 C per share. Eng. Mohamed Nasr, managing director and CEO of Telecom Egypt, commented on the results of the fiscal year 2023, saying: “The year 2023 is one of the strongest financial years for Telecom Egypt.

the total revenue in the fourth quarter was EGP 14.7 billion with a growth rate of 23% compared to the previous year, while the total revenue for the year was EGP 56.7 billion with a growth rate of 28% compared to the previous year. despite the constant challenges and changes we faced, we continue to focus on our strategy and continue to move forward with our investment plans to support growth opportunities, strengthen our partnerships and improve our operations, and all this contributed to achieving the great results you see today.

We again managed to increase the customer base by 8% and 9% respectively for fixed voice and fixed data customers, while the mobile customer base stabilized by the end of 2023 and began to grow again by the beginning of 2024.

Eb (earnings before interest, taxes, depreciation and amortization) 2 2023. The company continues its strategy of covering and providing its capital expenditure needs in advance, as free cash flows have been under pressure to reach negative EGP 3.6 billion due to providing its future capital expenditure requirements and securing supply chains in advance to hedge against expected changes in exchange rates and other unforeseen risks due to the current situation in the region.

With the beginning of 2024g5, I am confident that our business plan will unleash the full potential of Telecom Egypt and maximize the wealth of our shareholders, and based on the strong business results, we have decided to offer a dividend of one and a half pounds per share,”he said.

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