Telecom Egypt (TE) shared its Q3 2021 results with the nine-month consolidated revenue reaching EGP 26.4bn, climbing 18% YoY. The growth was mainly driven by higher data revenue, which made up 66% of top-line growth.
TE’s customer base continued to grow YoY across the board, with fixed voice and broadband customers both increasing by 16% YoY and mobile customers by 9% YoY. EBITDA also grew 37% YoY, landing at EGP 10.3bn and recording a strong margin of 39.1% on a higher margin revenue mix and cost containment initiatives.
In addition, TE’s net profit reached EGP 6.1bn, a 73% YoY growth with the adjusted net profit reaching EGP 5.7bn, growing 58% YoY on strong operational performance and higher investment income from Vodafone. Free cash flow also came in at EGP 5.8bn, of which, EGP 1.8bn is purely related to the organic performance of Telecom Egypt.
Commenting on the results, Adel Hamed, managing director and chief executive officer, commented, “We have adopted a multifaceted, sequential approach to reach financial and operational excellence, which is one of our prominent strategic pillars, involving driving growth across the P&L from revenue to earnings through cost containment initiatives, and deleveraging and restructuring our debt to reduce interest expense. Our focus has shifted to cash flow generation and CAPEX rationalization, in addition to visibility on dividends from Vodafone Egypt, in order to achieve positive FCFF for our shareholders and ensure its progressive growth.”
“Our growth rates, coupled with our strong human capital and advanced network capabilities, are making our goals of becoming a leading ICT provider and transforming Egypt into a premium digital hub increasingly attainable as we continue to direct our investments towards new technologies to serve the growing appetite for data," Hamed concluded.