Telecom Egypt Revenues Up on Vodafone Investment

Egypt's landline monopoly operator, Telecom Egypt (TE) has reported a ten-percent rise in full year profits for 2008 to EGP2.79 billion (US$492.2 million), driving largely by its 45% stake in Vodafone Egypt. However, the firm reported a drop in Q4 profits of 27.7% to EGP831 million (US$147.7 million).

Full year revenues rose 1.2 percent to 10.12 billion pounds (US$1.8 billion).

Commenting on the full year results, Eng. Akil Beshir, Chairman and CEO of Telecom Egypt, said: "2008 has been an unprecedented year globally and, while I report to you today a consolidated revenue figure which exceeds EGP 10 billion for the first time, market dynamics continue to present our business with challenges."

"Having reduced our debt position during the last two years and with significant cash reserves, we have no immediate refinancing requirements. I feel confident that we have started 2009 in good shape, with projects such as TE North on track and generating significant commercial interest; an increasing portion of growth business in the form of TE Data and Vodafone Egypt; a more diversified revenue base than ever before and robust margins which continue to produce significant shareholder returns."

TE's investments, including Vodafone Egypt, increased 16% provided an income contribution of EGP 1,309 million compared to EGP 1,126 million for the same period last year. Income from Vodafone Egypt was the main driver here as TE continues to capitalize on the growing domestic mobile telecommunications market via its 45% stake in the mobile operator. As of December 2008, Vodafone Egypt had a customer base of 17.6 million, an increase of 32% year-on-year. Total revenues generated by this base increased 15% year-on-year, to EGP 8,885 million for the nine months ending December 2008 (N.B. VE's financial year starts on 1st April).

Posted to the site on 16th March 2009