Telecom Egypt posts 14% rise in Q2 profit, proposes dividend

Reuters, Wednesday 13 Aug 2014

Telecom Egypt premises in Cairo (Photo: Mai Shaheen)

Fixed-line monopoly Telecom Egypt posted 1.02 billion Egyptian pounds ($142.66 million) in net profit in the second quarter, up 14 percent from a year ago, driven by growth in its international networks business.

On the back of its increased profits, Telecom Egypt proposed a $0.05 cash dividend for 2014. The dividend is subject to shareholder approval.

"Every one of our business units has delivered revenue growth when compared to both the previous year and the previous quarter, allowing us to record the highest quarterly revenue result in the history of the company," it said in a statement.

Telecom Egypt is waiting for the government to approve a unified license for mobile and landline services that would allow it to offer mobile services and boost earnings.

Egypt's three existing mobile service providers, Vodafone Egypt, Mobinil and Etisalat Egypt, have been eating away at Telecom Egypt's fixed-line services as more Egyptians opt to use mobile phones and the internet instead.

Telecom Egypt has been relying on its data business to boost revenue and has been waiting to launch a new mobile operation that would complement its existing joint venture with Vodafone and rival the sector's two other players. 

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