Telecom Egypt achieves 37.1 billion pounds in revenues during 2021, a growth rate of 16%

Telecom Egypt announced its business results for the fiscal year ending on December 31, 2021, according to the consolidated financial statements prepared in accordance with Egyptian accounting standards, achieving total consolidated revenues of EGP 37.1 billion, a growth rate of 16% compared to the previous year, mainly driven by With the increase in data services revenues, which achieved a growth of 30% compared to the same period of the previous year, as it represented 67% of the total growth in revenues, followed by an increase in infrastructure services revenues by 26%.

The company added in a statement issued today that the most important indicators of the results of the fiscal year 2021 include the following:

• The customer base achieved growth in all services provided compared to last year, as the number of fixed-line telephone subscribers and fixed-broadband internet subscribers increased by 12% and 16%, respectively, with the number of mobile subscribers reaching 9.4 million customers, with a growth rate of 28% Compared to the previous year. • EBITDA amounted to EGP 14.2 billion, achieving a profit margin of 38% as a result of high-margin revenues. • Operating profit achieved a growth rate of 42% compared to the previous year, supported by revenue growth and efforts to rationalize costs despite Increase in depreciation and amortization costs by 19% compared to the previous year. • Net profit after taxes amounted to 8.4 billion pounds, achieving a growth of 74% compared to the previous year, driven by the distinguished operational performance and the high return on investment revenues in Vodafone, which achieved a growth rate of 52% compared to the previous year.

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• Capital expenditures amounted to 10.1 billion pounds, or 27% of the total revenues achieved, while the paid capital expenditures amounted to 13.6 billion pounds, or 37% of the total revenues generated. times compared to 1.6 times in the previous year, with a decrease in the interest rate to reach 5.3% compared to 5.9% in 2020. The net operating cash flow doubled, reaching 16 billion Egyptian pounds, an unprecedented increase. The Board of Directors proposed a dividend of one pound per share for The year 2021, with a growth rate of 33% compared to the previous year.

For his part, Eng. Adel Hamed, Managing Director and CEO of Telecom Egypt, said that the results of the fiscal year 2021 reflect the company's outstanding performance at all levels, as revenue growth reached 16% compared to the previous year, supported by an increase in data services revenues by 30%. On an annual basis, EBITDA achieved a growth rate of 28% compared to the previous year, achieving a strong profit margin of 38%, and net profit recorded an unprecedented number, reaching EGP 7.7 billion, with a growth rate of 52% after neutralizing the impact of non-factors. operational. It reflects the strategic results adopted by the company to reach the highest levels of financial and operational excellence, as the company was able to translate the growth in revenues into high cash flows of 3 billion Egyptian pounds, which amounted to 7 billion pounds, after adding the exceptional dividends of Vodafone Egypt, which amounted to 4 billion pounds. Egypt.

He added that it continued to provide distinguished products to meet the desires of various customers, in addition to developing internal systems by relying on the company's distinctive infrastructure that extends across Egypt and the region. In addition, Telecom Egypt continued to contribute strongly to national digitization projects, including the new phase of the digital transformation initiative, which includes connecting government buildings nationwide with fiber optic cables, in addition to the first phase of the Decent Life initiative, which includes connecting about 1,400 villages with technology. Optical fiber to the home (FTTH).

He pointed out that the company continued its efforts towards reducing borrowing and reducing the cost of financing by benefiting from the high operating cash flows and the exceptional dividends of Vodafone Egypt during the year, which the company obtained in light of the amended shareholders’ agreement with the Vodafone Group, which gave the company clarity of the special vision. With the return on its investment in Vodafone Egypt. In conclusion, the year 2021 demonstrates Telecom Egypt’s vision and commitment towards maximizing shareholder returns in line with the state’s strategy for sustainable development by striving towards achieving strategic goals next year and in the future.”