Telecom Egypt shows LE2.1b net profit for H1 2018
Telecom Egypt has announced that its consolidated results slipped 18.2 percent during the first half of 2018, recording LE 2.06 billion, compared to LE 2.52 billion during the same period of 2017.
The company clarified in a statement that the decline in its net profit came as a result of a decrease in investment income from Vodafone Egypt and the impact of higher financing expenses.
“H1 2018 net profit was weighed on by first quarter performance as the second quarter net profit increased 4 percent YoY and 66 percent QoQ thanks to operational growth offsetting the increase in D&A and finance expenses,” the statement read.
The statement revealed that its consolidated revenues hiked 16 percent on a year-on-year basis, crossing LE 10 billion for the first time.
The statement attributed the rise in revenues to the increase of the price of data services by 45 percent YoY, continuing to lead growth boosted by fixed broadband.
As per standalone results, the company marked an increase of 2.38 percent, recording LE 1.42 billion during the first half of 2018, compared to LE 1.39 billion in the first half of 2017.
“It is important to highlight that our strategy relies on targeted investments in order to fulfil our goals for the company and the country,” Group Chief Executive Ahmed el-Beheiry stated.
Beheiry referred that the company's main focus lies on three objectives which are: the successful integration and monetization of the newly established mobile business to boost growth, overhauling Egypt’s internet infrastructure to provide the best quality and induce revenue as well as economic growth, and the expansion of Egypt’s international network with the aim of enabling Egypt to become a digital hub.
“Our ambitious investment strategy, while long-term in nature, has already shown results in H1 2018 with operational profit growing by 11 percent YoY in such a critical phase of the company’s history,” he added.
Beheiry noted that the impact on Telecom Egypt Q2 2018 earnings release net profit in H1 2018 is an expected by-product of such investment strategy and the high interest macro environment.
In 2017, Telecom Egypt’s consolidated results increased 17.97 percent, recording LE 3.15 billion, compared to LE 2.67 billion in 2016, while the company’s standalone results declined to LE 558.34 million in 2017, compared to LE 3.39 billion in 2016, according to a filing to the Egyptian Exchange (EGX).
Telecom Egypt operates within the telecommunication services sector focusing on integrated telecommunication services.
It has 17 subsidiaries operating across British Islands, Western Europe, Northern Africa and Middle East. Telecom Egypt is based in 6th of October, Egypt.