Telecom Egypt Sees a 19% Increase in Consolidated Revenue in FY 2022

Telecom Egypt has announced their results for FY 2022 wherein they saw its customer base expand in fixed voice and broadband by 5% and 9% respectively.

Telecom Egypt has announced its results for FY 2022.

The key highlights of the same are as follows:

  • Consolidated revenue increased by 19% YoY to report EGP 44.3bn in FY 2022, backed by the 21% and 17% increase in retail and wholesale revenues, respectively, thanks to the EGP 3.2bn increase in data revenue, followed by other enterprise and cable projects revenues, each increasing EGP 0.9bn YoY.
  • Customer base expanded across the board, with fixed voice and broadband growing 5% and 9% YoY, respectively, while mobile customers increased by almost 3mn subscribers backed by 1.5mn new customers from mega projects.
  • EBITDA landed at EGP 17bn (+23% YoY), implying a strong margin of 39% on higher revenue mix, meeting management’s guidance and easing the inflationary pressures reflected on some cost elements.
  • Operating profit grew 16% YoY despite the 25% increase in D&A. However, normalized for the one-off provision costs, it grew by 22% YoY to report EGP 10.3bn.
  • Net profit increased by 9% YoY reaching EGP 9.2bn, backed by the strong operational performance. However, excluding one-offs—comprising lower income from Vodafone (mainly caused by currency devaluation), the aforementioned provision reversal and FX impact — normalized net profit would have recorded EGP 10.1bn, growing 31% YoY and implying a margin of 23%.
  • In-service capex landed at EGP 12.6bn (representing 28% of revenues, +1% YoY). Cash capex reached EGP 19bn, whereas by excluding spectrum and license fees, it reaches EGP 13.7bn.
  • Net debt/EBITDA recorded 1.4x vs. 0.9x in 2021; however, the Effective Interest Rate (EIR) declined to 5.5% vs. 7% in the same period, despite the inflated gross debt of +89% YoY resulting from the USD appreciation.
  • Dividend distribution proposed by the BoD is EGP 0.75/share.

Telecom Egypt has once again extended its growth momentum, delivering a strong quarter and closing 2022 on a high note. Despite the continued market challenges, our clear strategy and enhanced operational efficiency have enabled us to meet our objectives.

FY 2022 revenue increased by 19% YoY, arriving at EGP 44.3bn. Our customer base continues to expand, particularly mobile subscribers, which increased by 3 million. EBITDA increased to EGP 17.4bn, marking a robust 39% margin due to higher revenue across the board—which offset the inflationary pressures witnessed across different cost elements. Net profit increased 9% YoY reaching EGP 9.2bn, while normalized net profit would have reached EGP 10.1bn, up 31% YoY. We recorded a FCFF of EGP 3bn after excluding spectrum and license fees; nonetheless, we deemed such investments crucial as we strive to continue growing our customer base and enhancing service quality.

We look forward to continuing our growth story well into 2023. As such, we seek each and every possible opportunity to monetize our investments and strengthen our performance, while keeping a close eye on expanding our reach and rationalizing different cost elements — as witnessed through our newly signed national roaming agreement with Orange Egypt, which kicked in at the end of 2022 and is expected to drive annual savings of EGP 1bn, starting 2023. I believe that our core values of providing the most reliable and advanced ICT services, while fortifying our international presence in the connectivity space, will continue fuelling our growth momentum, benefiting all our stakeholders, and delivering a decent value to our shareholders. In that regard, I’m pleased to share that despite the global economic conditions and macro challenges, the BoD has proposed to pay out a dividend of EGP 0.75/share for FY 2022.

Adel Hamed, Managing Director and Chief Executive Officer, Telecom Egypt

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