Telecom Egypt (TE) announced its financial results for the year 2017, according to consolidated financial statements prepared in accordance with Egyptian accounting standards.
The company achieved unprecedented financial and operational performance, especially after the successful launch of its WE mobile network. The company’s total consolidated revenues for the fiscal year (FY) that ended on 31 December 2017 amounted to EGP 18.6bn, a 33% increase over the previous year. The increase is 13%, adjusting for exchange rate differences. Profit before interest, tax, and depreciation reached EGP 5.2bn, up by 36% from last year, and marking a profit margin of 28%. The net profit after taxes amounted to EGP 3.2bn compared to EGP 2.7bn in 2016, reflecting a growth rate of 18% with a profit margin of 17%.
The total number of subscribers to high-speed ADSL internet services reached 4.1 million subscribers, an increase of 20% over the previous year. The total number of landline subscribers reached 7.1 million subscribers for the year 2017, an increase of 11% over the previous year. Mobile subscribers amounted to 2.3 million by the end of 2017.
Earnings per share for the year ending 31 December 2017 amounted to EGP 1.4, compared to EGP 1.2 in 2016, reflecting an 18% improvement. Investment expenditure for FY 2017 was EGP 10.7bn, including the value of mobile license fees, compared to EGP 10bn in the previous year.
“The company achieved strong financial and operating performance in 2017, achieving a double-digit growth rate that is reflected in all indicators,” said Ahmed El Beheiry, managing director and CEO of Telecom Egypt. Total revenue reached EGP 18.6bn, up 33% over 2016, supported by a 42% growth in high-speed ADSL internet services, which led to a 28% increase in retail revenues over the same period. The company achieved a net profit growth of 18% despite the impact of the settlement with Orange and Etisalat Egypt in the income statement. Excluding the financial impact of these adjustments, net profit stands 31% higher than last year.
He explained that 2017 was a year of great strategic achievements. “The most important of these was the launch of our brand WE and entering the mobile market to become the first integrated operator in Egypt,” he added. Moreover, he said that TE has proven its leadership in Egypt by successfully attracting over 2 million consumers in the first three months of launching the mobile service, which had not been achieved by another company in the Egyptian market.
El Beheiry added that the year 2017 has also witnessed the development of the company’s new approach based on customer service, the establishment and development of customer service centres, and ending all long standing judicial disputes with mobile operators in Egypt, in addition to several long-term agreements that ensure the company’s revenues from wholesale services on the long run.
He added that the company has invested in ADSL services based on fibre optic cable networks and set up its own mobile network to offer its customers the best quality of internet services whether via ADSL or mobile devices in Egypt. “We look forward to being the first choice for our customers in terms of providing integrated communications services,” he concluded.