-Hamed: We have implemented a multifaceted business plan to achieve the best financial and operational performance
By: Wael Alhoseny - Bakinam Khaled
Telecom Egypt revealed its business results for the financial period ending on September 30, 2021, according to the consolidated financial statements prepared in accordance with Egyptian accounting standards. Compared to the same period of the previous year, supported by the increase in data services revenues, which represented 66% of the total growth in revenues.
The company also showed a growth in its customer base across all services provided compared to last year, where the number of fixed-line subscribers and fixed-speed Internet customers increased by 16%, as well as mobile subscribers by 9%, and the profit before interest, taxes, depreciation and amortization amounted to 10.3 billion pounds. Realizing a growth of 37% compared to the same period of the previous year, with a strong profit margin of 39.1%, supported by an increase in higher-margin revenues and efforts to rationalize expenditures.
The net profit after taxes amounted to 6.1 billion pounds, an increase of 73% compared to the same period of the year. By neutralizing the impact of non-operating elements, the net profit reaches EGP 5.7 billion, a growth rate of 58% compared to last year thanks to the outstanding operational performance and the increase in investment income from Vodafone despite the increase in depreciation and amortization costs by 24%.
Outstanding operating performance
For his part, Eng. Adel Hamed, Managing Director and CEO of Telecom Egypt, said that the company’s business results during the last period of this year reflect distinguished operational performance, as data transmission services continued to drive growth at the level of revenues, as total revenues increased by 18 % compared to the same period of the previous year as a result of an increase in data services revenues by 31% over the same period. The profit before interest, taxes, depreciation and amortization also recorded a growth of 37% with a profit margin of 39.1%, and this distinction was reflected in the growth of net profit after taxes, which amounted to 6.1 with a growth rate of 58% compared to last year after neutralizing the impact of non-operating elements.
high cash flow
He added that the company relied on a multi-sided plan of action to reach the best performance on the operational and financial levels, which is one of the strategic pillars to achieve the company’s goals, which include achieving revenue growth, and its reflection on the company’s profitability through rationalizing various expenses and reducing and restructuring the company’s loans in order to reach to the lowest cost of financing.
He explained that the company's focus is now on achieving high cash flows, in addition to rationalizing capital expenditures, through strong operational performance and the continuation of dividends from our investments to achieve free cash flows for shareholders and ensure their continuity. The free cash flow during the nine months amounted to 5.8 billion Egyptian pounds and neutralizing the impact of dividends from Vodafone amounted to 1.8, which reflects the company's ability to achieve strong cash flows.
He explained that the capital expenditures for assets within the service represented 16% of the total revenues achieved, while the cash capital expenditures without new frequencies represented 32% of the total revenues, reaching 8.5 billion pounds, and the free cash flows reached 5.8 billion Egyptian pounds, neutralizing the impact of Dividends from Vodafone amount to 1.8, which reflects the company's ability to generate strong cash flows.