Telecom Egypt achieves 8.4 billion pounds in net profits in 2021 and records 37.1 billion revenues

Telecom Egypt announced its business results for the fiscal year ending in December 2021, according to the consolidated financial statements prepared in accordance with Egyptian accounting standards.

The total consolidated revenues amounted to 37.1 billion Egyptian pounds, with a growth rate of 16%, compared to the previous year, mainly driven by the increase in data services revenues, which achieved a growth of 30% compared to the same period of the previous year, representing 67% of the total growth in revenues, followed by an increase in revenues Infrastructure services by 26%.

The customer base achieved growth in all services provided compared to last year, as the number of fixed-line subscribers and fixed-speed internet subscribers increased by 12% and 16%, respectively, with the number of mobile service subscribers reaching 9.4 million customers, a growth of 28% compared to the previous year.

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The profit before interest, taxes, depreciation and amortization amounted to 14.2 billion pounds, achieving a profit margin of 38%, as a result of achieving high-margin revenues.

The operating profit achieved a growth rate of 42% compared to the previous year, supported by the growth in revenues and efforts made to rationalize costs, despite the increase in depreciation and depreciation costs by 19% compared to the previous year.

The net profit after taxes amounted to 8.4 billion pounds, achieving a growth of 74% compared to the previous year, driven by the outstanding operational performance and the high return on investment income in Vodafone, which achieved a growth rate of 52% compared to the previous year.

Capital expenditures amounted to 10.1 billion pounds, or 27% of the total realized revenues, while paid capital expenditures amounted to 13.6 billion pounds, or 37% of the total realized revenues.

The net debt to EBITDA ratio stabilized on an annual basis 0.9 times compared to 1.6 times in the previous year, with the interest rate declining to reach 5.3% compared to 5.9% in 2020.

Net operating cash flow doubled to reach 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.

Engineer Adel Hamed, Managing Director and CEO of Telecom Egypt, commented on the company’s business results for the fiscal year 2021, saying: “We are pleased with the results of the fiscal year 2021, which reflect the company’s distinguished performance at all levels, as revenue growth reached 16% compared to the previous year, supported by the increase in Data services revenue increased by 30% on an annual basis, and 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 of EGP 7.7 billion, with a growth rate of 52 % after neutralizing the effect of non-operational items. The strategic results adopted by the company reflect 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 amounts to 7 billion pounds, after adding Vodafone Egypt’s exceptional dividends, which amounted to 4 billion pounds. Egypt.

The company continued to provide distinctive products to meet the needs 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 linking government buildings at the state level with fiber-optic cables, in addition to the first phase of the Good Life initiative, which includes linking about 1,400 villages with technology. Optical fiber for the home (FTTH).

The company also continued its efforts towards reducing borrowing and reducing the cost of financing by taking advantage of the high operating cash flows and exceptional dividends for Vodafone Egypt during the year, which the company obtained in light of the amended shareholder agreement with Vodafone Group, which gave the company a clear vision of the return on its investment in Vodafone Egypt.

Finally, the year 2021 demonstrates Telecom Egypt’s vision and commitment to maximizing shareholder returns in line with the country’s sustainable development strategy by striving towards achieving strategic goals next year and in the future.”