Telecom Egypt (ETEL) Q3 2024 earnings summary

Executive summary

• 9M revenue rose 39.3% YoY to EGP 58,431mn and EBITDA increased 33.5% to EGP 23,485mn; net profit declined 5.6% to EGP 8,637mn.

• Customer bases grew across fixed voice, fixed data and mobile by 4%, 8% and 9%, respectively.

Financial highlights

• Q3 revenue rose 48.1% YoY to EGP 20,478mn; EBITDA increased 42.8% to EGP 8,032mn and operating profit rose 42% to EGP 4,416mn.

• Q3 net profit fell 13% YoY to EGP 2,126mn; EPS declined 13% to EGP 1.25.

• 9M operating profit was EGP 12,833mn, up 26%; EPS was EGP 5.06, down 5.6%.

• 9M operating cash flow increased 32.1% YoY to EGP 15,019mn; ending cash was EGP 9,367mn.

Outlook and guidance

• FY 2024 guidance was reaffirmed: mid-double-digit revenue growth, high-30s EBITDA margin, in-service CapEx/sales in the mid-20s% and FCFF/EBITDA in the early 40s%.

• 9M actuals included 39% revenue growth, 40% EBITDA margin and in-service CapEx/sales of 22%; focus remained on cost optimization, cash flow and infrastructure monetization.

• Next-year spending was being optimized to improve cash flow without hindering revenue growth; cost structure had largely stabilized at a higher base.