9M 2024 key highlights
Total revenue increased by 39% YoY to reach EGP 58.4bn, driven by a 46% YoY increase in Data revenues, accounting for 45% of total revenue growth, thanks to the growing customer base and the price adjustments effected at the beginning of the year, followed by a 61% YoY hike in International Direct Dialing (IDD) revenues and a 90% YoY surge in Capacity Sales.
Customer base increased YoY across Mobile, Fixed Broadband, and Fixed Voice by 9%, 8%, and 4%, respectively.
EBITDA witnessed a 34% YoY increase, reaching EGP 23.5bn with a margin of 40%, in line with our targeted levels.
Net profit declined by 6% YoY to EGP 8.6bn, with a net profit margin of 15%.
In-service CapEx reported EGP 12.8bn (22% of sales), while Cash CapEx reported EGP 30.1bn (52% of sales).
Net debt/EBITDA scored 2.3x in 9M 2024 vs 1.7x in FY 2023, mainly on currency depreciation.
FCFF enhanced during 9M 2024 compared to H1 2024, recording EGP -5.9bn and EGP 48mn when we exclude the license fees.
Mohamed Nasr, Managing Director and Chief Executive Officer, commented:
“Telecom Egypt has once again demonstrated its ability to navigate through a complex and challenging environment. Despite the challenging macroeconomic environment, we have successfully maintained healthy results, underscoring the strength and resilience of our business model.
Our total revenue increased by 39% YoY, reaching EGP 58.4 billion. EBITDA grew by 34% YoY, reaching EGP 23.5 billion and recording a 40% margin, thanks to strong top-line growth and effective cost-optimization measures, which allowed us to maintain margins at targeted levels despite continued inflationary pressures. However, net profit declined by 6% YoY, landing at EGP 8.6 billion, despite the strong operational growth and a 56% increase in our income from VFE, as the 3x YoY higher net finance costs caused by the devaluation of the EGP and the higher interest rates during the period pressured the bottom line.
The Retail segment continues to grow organically, driven by an expanding customer base and the implementation of price adjustments at the start of the year. Data revenue remains the primary growth engine for this segment, reflecting broader global trends.
Meanwhile, the Wholesale segment is also performing well. Just this week, we signed long-term, landmark infrastructure service agreements with Vodafone Egypt, with varying maturities up to 2034, worth a total value of EGP 30 billion. These agreements align with our strategic plan to monetize our existing assets and network infrastructure.
Overall, our business remains resilient, and we are optimistic about the future, as macroeconomic conditions begin to stabilize. We are witnessing a stabilization in the exchange rate, a gradual decline in inflation, and a reduction in Federal Reserve interest rates – with local interest rates expected to follow suit in the near future.
This stabilization will help enhance our financial performance moving forward. While our cost structure has risen to a new base, it has now largely stabilized, giving us clearer visibility to scale up revenue and enhance margins. On the CapEx front, our investments in subsea cables, fiber optic networks, mobile networks, and the 5G license were essential for our growth and to secure our position in the market. However, we are working tirelessly to optimize next year’s expenditures and achieve healthier cash flow without hindering our revenue growth momentum.
As we approach the end of 2024, we remain focused on delivering innovative solutions and exceptional value to our customers and partners. By continuously enhancing our services portfolio, optimizing expenditures, and strategically monetizing our assets and infrastructure, we are committed to maximizing shareholder returns and driving sustainable growth across our core business lines.
With confidence in our ability to achieve our targets, we reaffirm our 2024 guidance and remain dedicated to creating long-term value for our shareholders.”
