Cairo-based Telecom Egypt posted net profit of EGP 3.9 billion ($249.20 million) for the first half of 2021, surging by 88% year-on-year. Total consolidated revenue stood at EGP17.4 billion in the period, up 16% year-on-year.
The Arab country’s primary telecommunication company attributed this growth in net revenue to the steady operational performance, foreign exchange gains, and higher investment income from Vodafone.
In June, Telecom Egypt and Vodafone Group signed a modified shareholders’ agreement. The agreement includes changes to Vodafone Egypt’s dividend policy, whereby VFE will pay a onetime dividend of EGP10bn to its shareholders during the 2021 calendar year, EGP 2bn of which was paid in March and EGP 8bn in July. The parties have also agreed on a minimum dividend payout ratio of 60% of free cash flow going forward.
On quarterly basis, Telecom Egypt’s net profit amounted to EGP 1.7 billion in the second quarter (Q2) of 2021, up from EGP 748.39 million in Q2 2020.
Adel Hamed, Managing Director and Chief Executive Officer, commented:
“I am very proud of our performance during the first half of the year, as we continue to deliver on our growth targets; both operationally and financially. Top line grew 16% YoY mainly owed to significant data growth of 31% YoY, which, in parallel to the continued cost containment efforts, sustained the improved profitability. EBITDA margin came in at 39% and operating profit grew almost 60% YoY, trickling down to an organic net profit growth of 54% YoY.”
Hamed was appointed Managing Director and Chief Executive Officer of Telecom Egypt in January 2019. He is also a member of Telecom Egypt’s board, representing the Egyptian government. Hamed is a Telecom Egypt veteran having served 20 years in the company assuming multiple roles. He first joined Telecom Egypt in 1999 as a network engineer, undertaking various roles and responsibilities before becoming the General Manager of International & Wholesale Business Operations in 2008. Hamed holds a Bachelor of Science in in Electronics and Electrical Communication from Helwan University, Egypt.
Telecom Egypt is the first total telecom operator in Egypt providing all telecom services to its customers including fixed and mobile voice and data services. Telecom Egypt has a long history serving Egyptian customers for over 160 years maintaining a leadership position in the Egyptian telecom market by offering its enterprise and consumer customers the most advanced technology, reliable infrastructure solutions and the widest network of submarine cables. Aside from its mobile operation “WE”, the company owns a 45% stake in Vodafone Egypt. Telecom Egypt’s shares and GDRs (Ticker: ETEL.CA; TEEG.LN) are traded on The Egyptian Exchange (EGX) and the London Stock Exchange (LSEG).