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Telecom Egypt announced its Q1 2019 results ending 31 March 2019, registering a net profit of EGP 1.6bn. Consolidated revenue came in at EGP 6.1bn, recording +27% Year-on-Year. Retail revenue contributed 57% to the total Year-on-Year growth backed by the rise in data services revenue. 

Customer base continued to rise on all fronts. On a Year-on-Year basis, fixed voice subscribers increased +11%, fixed broadband jumped 27% and mobile subscribers rose 45% reaching 4.2mn customers. EBITDA totaled EGP 1.9bn, climbing 26% Year-on-Year with a healthy margin of 31%.

In-service CapEx intensity reached 23% on continuing infrastructure expansion and net debt recorded EGP 8.1bn down from EGP 12.6bn in Q4 2018, representing 1.1x annualized EBITDA down from 2.1x in Q4 2018.

Adel Hamed, Group Chief Executive, commented, “This quarter shows strong results and a robust preface to Telecom Egypt’s strategic objectives for 2019. Our retail revenue continues its notable growth driven by both fixed and mobile data, reflecting the growth of our customer base across our spectrum of services, which will soon expand to quad play. We aim to build upon our network capabilities and grow to become a fully-fledged ICT provider within 2019.

“The quarter is also marked by the strong execution ability of this organization having completed two strategic national projects in record time, reflecting our key role as the facilitator of Egypt’s digital transformation initiative. After the success of the schools’ connectivity project in Q3 2018, Telecom Egypt, in March 2019, distributed 613k data SIMs to students in their first-year of secondary education in four days. We have also successfully connected more than 650 governmental buildings in Port Said with fibre, with more governorates to follow in the next phase.

“On the wholesale front, this quarter’s performance shows the strong growth in wholesale revenue especially in light of the growing data consumption of MNO customers. I’m also very pleased with the PEACE cable system agreement signed in April that secures USD 45mn of revenue over the lifetime of the cable and will significantly contribute to IC&N revenue in the second quarter. Moreover, we signed a USD 20mn LoI with PEACE’s parent, HENGTONG, which will allow us to further monetize our international network, while simultaneously optimizing our Capex spending.”