Telecom Egypt has reported EGP 4.1bn in net profit during the first quarter (1Q) of 2023, a growth of 144% compared to the same period of the previous year.
According to the company’s business results, the growth in profits is due to the increase in investment revenues, which limited the increase in depreciation and amortization costs and financing expenses.
Today, Telecom Egypt announced its business results for the financial period ending on 31 March 2023, according to the consolidated financial statements prepared in accordance with Egyptian accounting standards.
According to the results, the total consolidated revenues amounted to EGP 14bn, achieving a growth of 48% compared to the same period of the previous year, driven by the increase in the revenues of all business units, especially the wholesale business units, which contributed 70% of the total growth.
Infrastructure revenues also grew by 86% compared to the same period of the previous year, as did the growth in revenues from services provided in dollars.
Customer base expanded across the board, with fixed voice and broadband growing 5% and 7% YoY, respectively, while mobile customers increased by 22% YoY to reach 12.4m.
Adjusted operating profit jumped 101% YoY based on strong operational performance, offsetting the 31% higher D&A costs YoY, after neutralizing the effect of some exceptional items, as a result of the distinguished operational performance, which mitigated the impact of the increase in depreciation and amortization costs amounting to 31% compared to the same period of the previous year.
Capital expenditures for in-service assets amounted to EGP 1.3bn, or 9% of total revenues, while cash capital expenditures amounted to EGP 6.1bn, with a ratio of capital expenditures to sales amounting to 43%, and after excluding the effect of paying the last payments for new frequencies, the percentage reached 28%.
Mohamed Nasr, Managing Director and CEO of Telecom Egypt, said that the results of the first quarter of 2023 business demonstrate the company’s ability to maximize the benefit from its diversified assets and its distinguished strategic location.