Telecom Egypt (WE) revenues hit EGP 17.4bn in nine months

MENA , Thursday 15 Nov 2018

The company has seen a 45 percent increase in internet services, while a deal signed with India's Airtel will bring further revenue and an immediate windfall of $90m

Telecom Egypt (WE) revenues hit EGP 17.4 billion from January to September 2018, a 32 percent uptick in comparison with the same period last year.

In a statement Thursday, the company said the number of mobile phone subscribers upped 3.6 million, at a-300,000-subscribers-rise that quarter.

The number of fixed line subscribers increased by 10 percent, the statement said.

Earnings before interest, tax, depreciation and amortisation (EBITDA) ramped up to EGP 5.3 billion at a 36 percent rise in comparison with the same period last year.

Profit After Tax (PAT) recorded EGP 3.5 billion, while cash flows from operating activities upped by 37 percent in comparison with the corresponding period last year, the statement added.

The company attributed this rise in revenues to internet services growing by 45 percent in addition to a deal signed with India's Bharti Airtel in October.

The agreement grants Airtel IRUs (Indefeasible Right of Use) on the Middle East-North Africa Submarine Cable (MENA Cable) and TE-North Cable systems. Additionally, Airtel will take large capacities on a long-term basis on two new cable systems (SMW5 & AAE1). 

The agreement is expected to lead to an immediate revenue and cash flow of $90 million in addition to around four percent of annual recurring revenue for Telecom Egypt over the lifetime of the cable systems (a minimum of 15 years). 

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