Telecom Egypt (ETEL) Q1 2024 earnings summary

Executive summary

• Q1 revenue was EGP 17.487bn, up 25% YoY; EBITDA reached EGP 7.309bn, up 19%, with a 41.8% margin. Management-reported net profit was EGP 3.882bn, up 1.8%.

• Separately, interim financial-statement figures showed a net loss of EGP 17.45bn versus EGP 3.80bn, amid FX translation losses and higher finance costs.

• Operating cash flow was EGP 10.36bn; cash and cash equivalents ended at EGP 9.68bn, down from EGP 10.44bn at year-end 2023.

• The interim review conclusion was qualified because reviewers could not access Vodafone Egypt to review the associate investment and related profit share.

Financial highlights

• Revenue rose 25.3% YoY to EGP 17,487mn; EBITDA increased 19.0% to EGP 7,309mn.

• Management-reported net profit was EGP 3,882mn, up 1.8% YoY; EPS was EGP 2.27, up 2%.

• Interim financial-statement figures showed an operating loss of EGP 2.85bn, loss before tax of EGP 18.49bn and net loss of EGP 17.45bn; basic and diluted EPS were both EGP (10.23).

• Other operating expenses included EGP 6.42bn in FX translation losses; finance costs were EGP 18.07bn versus EGP 6.64bn.

• Gross profit was EGP 7.15bn versus EGP 6.28bn; associate profit share was EGP 714.8mn versus EGP 825.3mn.

Outlook and guidance

• FY 2024 budget targets mid-double-digit revenue growth, an EBITDA margin in the high 30s, in-service CapEx/sales in the early 20s and FCFF/EBITDA in the early 40s.

• Priorities include phasing CapEx to support free cash flow, improving cost efficiency, monetizing assets—especially those generating foreign-currency returns—and deploying the 5G license.

• Interim results were stated as not indicative of results expected for FY 2024.