TelecomEgypt has released its Q3 2022 Financial results.
Following are the highlights of the same:
- Consolidated revenue increased by 22% YoY to report EGP 32.3bn, thanks to higher revenues from both data (+21% YoY) and cable projects—representing 39% and 30% of the total growth, respectively.
- Customer base grew on all fronts, with fixed voice reaching 11.4mn subscribers (+8% YoY), fixed broadband reaching 8.6mn subscribers (+12% YoY), and mobile subscribers reaching 11.9mn (+54% YoY).
- EBITDA landed at EGP 13.3bn, achieving a strong margin of 41% driven by an improved revenue mix.
- Operating profit landed at EGP 8.3bn, increasing by 30% YoY, overshadowing the 25% D&A increase.
- Net profit reached EGP 6.2bn; however, excluding one-offs (Vodafone reversals, provisions and FX impacts) normalized net profit grew 25% YoY to record EGP 7.1bn.
- In-service capex reported EGP 5.2bn, implying in-service capex/sales of 16%, while cash capex reported EGP 11.2bn, implying cash capex/sales of 35%. Excluding payment of the recently awarded spectrum and the 2G license instalments, cash capex/sales would reach 29%.
- Net debt landed at EGP 17.9bn (up from EGP 13.3bn in FY 2021) due to the currency devaluation, denoting 1x net debt/annualized EBITDA.
I’m proud of the resilience Telecom Egypt is showing. The clear-cut wins quarter after quarter, and accordingly, positive 9M 2022 results, reflect our solid stance in the turbulent operational environment.
Data demand was the main contender for the 22% YoY upscale in top line—directly through retail data growth (21% YoY) and indirectly through higher cable project and domestic wholesale revenues recorded year-to-date. Meanwhile, EBITDA reached a strong margin of 41%, supported by an improved revenue mix, growing customer base and healthy ARPU on the operational front. Our net profit reached EGP 6.2bn, making up 19% of the top line.
Despite inflationary pressures witnessed across the various cost elements in 9M 2022 (the two-time salary increase, higher interest expense and currency devaluation—which inflated capex), we maintained our FCFF position in the positive territory, amounting to EGP 0.3bn, thanks to healthy operations and Vodafone dividends. However, excluding the payment of the recently awarded spectrum and the 2G license instalments FCFF would have reached EGP 2.3bn.
We’re confident that growing USD revenue streams and capex rationalization will continue to pay off—further enhancing our cash flow stance going forward. Additionally, we are committed to exceeding client expectations by providing cutting-edge technology services of the highest caliber while advancing the nation’s digitalization program. By doing so, and with the plan in place to face further market disruptions, we are confident that we will continue our growth story moving forward. This will ensure that we remain resilient and financially sound, fulfilling our responsibility to all stakeholders. As always, we will have the best interests of all of our shareholders in mind if and when we need to make any investment-related decisions.”Adel Hamed, Managing Director and Chief Executive Officer, TelecomEgypt