Telecom Egypt says it still considers selling stake in company

Fatma Salah
4 Min Read

Telecom Egypt has said that it had contacted the main shareholder of the company, the Ministry of Finance, regarding the news of selling 10% of the company, and that it had reported that the state was studying the feasibility of offering an additional stake in the company’s capital, within the framework of the state ownership policy document.

The company added, in a disclosure to the Egyptian Exchange, that the main owner is working to maximize resources through the assets owned by it, and that the matter did not go beyond more than a preliminary study that is still in its infancy and initial stages, and no official decisions have been taken regarding it, which is what this study may end with.

The company called on investors to take caution and caution in trading in light of the information officially disclosed by the company.

Informed sources had revealed to Daily News Egypt that the government aims to sell a share of Telecom Egypt in order to provide dollar liquidity in order to launch 5G.

Yesterday, Monday, Reuters news agency quoted unnamed sources as saying that the Egyptian government intended to offer a 10% stake in Telecom Egypt, and that it had appointed CI Capital and Al-Ahly Pharos to manage the sale.

The government owns 80% of Telecom Egypt’s shares, and the other 20% is traded on the Egyptian Exchange.

The sources added to Daily News Egypt that the share to be sold has not been settled, but the company assigned investment banks to study the possibility of selling a share to a strategic investor in order to provide the dollar liquidity it needs, while the sold share will reach a minimum of 10%, explaining that the company aims to exit from the share. minority.

The company achieved total consolidated revenues of EGP 44.3bn, achieving a growth of 19% compared to the previous year, driven by an increase in revenues from retail business units and wholesale business units (a growth rate of 21% and 17%, respectively), as data services revenue increased by EGP 3.2bn compared to the previous year with the increase in other revenues of the enterprise business unit by EGP 0.9bn, cable revenues achieved the same increase compared to the previous year.

The company showed a growth in its customer base at the level of services provided compared to last year, as the number of fixed-line subscribers increased by 5%, and the number of fixed high-speed internet customers by 9%, while the number of mobile subscribers increased by 3 million clients thanks to the increase in government project’s clients.

EBITDA grew by 23% compared to the previous year, recording EGP 17bn, achieving a profit margin of 39%, in line with management’s expectations and directives, and supported by the increase in high-margin revenues, which mitigated the impact of inflation reflected on some cost elements.

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