Telecom Egypt (ETEL) Q1 2025 earnings summary

Executive summary

• Q1 revenue rose 42% YoY to EGP 24,797,977 thousand; EBITDA increased 49% to EGP 10,870mn.

• Adjusted net profit reached EGP 5,150mn, up 39% YoY; net profit after tax was EGP 4,653,696 thousand, versus EGP 3,883,992 thousand.

• KPMG’s limited review found nothing indicating the interim statements were not fairly presented in all material respects under Egyptian Accounting Standard No. 30.

Financial highlights

• Revenue was EGP 24,797,977 thousand, up 41.8% YoY and 5% QoQ; gross profit reached EGP 10,509,187 thousand.

• EBITDA was EGP 10,870mn, up 48.7% YoY; its margin expanded 204 bps to 43.8%.

• Operating profit rose 93% to EGP 6,992,881 thousand; operating margin improved to 28% from 21%.

• Reported net profit after tax was EGP 4,653,696 thousand; basic and diluted EPS increased to EGP 2.72 from EGP 2.27.

• Net finance cost rose to EGP 4,022,575 thousand from EGP 1,666,346 thousand; profit before tax was EGP 6,157,502 thousand.

Outlook and guidance

• FY 2025 budget targets revenue growth in the low 20s and EBITDA margin in the high 30s; Q1 results were 42% growth and 44% margin.

• FY 2025 budget targets in-service CapEx/sales in the low 20s and FCFF/EBITDA in the early 40s; Q1 actuals were 9% and 35%, with FCFF/EBITDA excluding EGP 0.2bn of licenses.

• Results were described as in line with the quarterly budget and on track for full-year targets.