Egyptian fixed line incumbent Telecom Egypt (TE) has released its financial results for the twelve months ended 31 December 2009, posting a 9.4% year-on-year increase in net profit to EGP3.06 billion (USD559 million). Total consolidated operating revenues for the twelve-month period however fell 1.56% y-o-y to EGP9.96 billion compared to EGP10.12 billion a year earlier. Retail services accounted for more than half of total turnover, or EGP5.76 billion, but fell 7% against the amount generated in 2008, which TE attributed to promotional activities designed to boost competitiveness against mobile voice operators. Indeed, total voice revenues were EGP2.62 billion in 2009, a decline of 13% against FY2008, although turnover from internet and data services helped to offset the fall, rising 13% y-o-y to EGP649 million.
Commenting on the results, Tarek Tantawy, TE’s CEO, said: ‘There is no doubt that 2009 has been a challenging year. Egypt has not been immune to the global slowdown. Combined with the ambitions of mobile operators in Egypt, this has resulted in aggressive pricing. In our retail business we have responded nimbly to such discounts with compelling promotions of our own. This has placed some pressure on retail revenues in the short term, but has already resulted in a number of subscribers choosing the Telecom Egypt option – one of quality and value.’
As at end-December 2009 TE reported that it had 9.55 million fixed line voice subscribers, down from 11.7 million a year earlier, while customers signing up for high speed internet services via its internet service provider subsidiary TE Data rose 47.3% to 625,249 at that date.