Telecom Egypt (ETEL) Q4 2024 earnings summary

Executive summary

• FY 2024 revenue rose 44.7% to EGP 82,037mn; EBITDA grew 45.4% to EGP 32,953mn, at a 40% margin.

• Reported net profit fell 14% to EGP 10,098mn; adjusted profit, excluding EGP 4.9bn FX losses and EGP 0.6bn early-retirement costs, rose 22% to EGP 14,308mn.

• Growth was supported by Data, IDD and infrastructure revenues, price adjustments, and higher fixed voice, broadband and mobile customer bases.

Financial highlights

• Q4 revenue rose 60.4% YoY to EGP 23,606mn; EBITDA increased 86.6% to EGP 9,468mn, with margin reaching 40.1%.

• FY operating cash flow was EGP 32,086mn in financial-statement figures; cash and cash equivalents ended at EGP 7,565mn.

• Net finance costs rose to EGP 30,591mn, including EGP 19,651mn of FX losses; other operating expenses included EGP 8,126mn of FX losses.

• Adjusted net profit margin was 17%; EPS was EGP 4.79, down 18% YoY.

Outlook and guidance

• FY 2025 budget targets low-20s revenue growth and an EBITDA margin in the high 30s.

• FY 2025 in-service CapEx-to-sales is targeted in the low 20s; FCFF/EBITDA is targeted in the early 40s.

• Management was evaluating limited FX hedging for part of USD exposure, subject to cost and counterparty considerations.