Telecom Egypt (TE) recorded a total sales revenues of EGP3.868 billion (USD545 million) in the quarter ended 30 June 2014, representing an almost 40% increase against the same period a year earlier. Such growth was driven by the operator’s ‘International Customers & Networks’ (‘IC&N’) business unit, which it said had had ‘a truly exceptional quarter’, with revenues surging by more than 400% on the back of the conclusion of major transactions with the SMW-5 and AAE1 cable systems. While the IC&N revenues rose to EGP999 million in the quarter under review, retail turnover fared less impressively, although still recording annual growth. In 2Q 2014 TE reported revenues of EGP779 million for its ‘Home Services’ unit, up 5% year-on-year from EGP742 million, with a 24.6% increase in turnover from home data services helping to offset a 18.6% decline in fixed voice revenues.
EBITDA for the second quarter of 2014 meanwhile totalled EGP1.730 billion, an increase of 105.9%, with this increase ‘directly attributable to higher revenues and careful control of operating expenditures’. Net profit for the quarter under review totalled EGP994 million, an 81.0% annual increase, although TE noted that corporate taxes actually increased from the second quarter of 2014, and as such it has said it expects these to be accounted for retroactively.
Capital expenditure in 2Q14 reached EGP376 million, up significantly from EGP143 million in the first quarter of the year, with the company saying the increase reflected its investment in upgrading its nationwide access network from copper-based to fibre-based technologies.
Echoing the trend in revenues, at the end of June 2014 TE reported a fixed voice subscriber base of 5.59 million, down from 5.95 million, while fixed broadband accesses increased from 1.368 million to 1.717 million. Average revenue per user (ARPU) for the company’s Home Services unit was EGP25.02 in 2Q14, down from EGP26.42 in the corresponding period of 2013.