Telecom Egypt began the year with EGP 25 billion in total revenue, up 42 percent year over year due to strong results in both its retail and wholesale divisions.
This figure was revealed in the company’s financial result for the first quarter of 2025, which ended on March 31. The result demonstrates a steady increase in revenue along with improved operational effectiveness and a sound cash flow.
The company’s operational efficiency allowed it to outperform inflationary cost pressures, resulting in EBITDA growth of 49 percent YoY and a strong margin of 44 percent.
“With 2025 well underway, I am pleased to report that our Q1 results affirm our strong growth trajectory. We remain optimistic about sustaining this momentum, supported by a favorable economic outlook in Egypt, where exchange rates remain stable within expected ranges, inflation is under control, and interest rates are on a downward path,” stated Mohamed Nasr, Managing Director and Chief Executive Officer, Telecom Egypt.
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Retail revenue grew by 40%
Revenue grew 40 percent year over year in the retail segment, driven by a 45 percent increase in the Home & Consumer business unit after a 30 percent price adjustment in December 2024.
Due to outstanding growth in the Domestic and ICA business units, which grew by 56 percent and 64 percent YoY, respectively, wholesale revenue increased 44 percent YoY.
After ten years of prudent, calculated investments, the company is enjoying the benefits of being Egypt’s biggest telecom infrastructure provider and a major regional force in the global connectivity scene.
These initiatives have put it in a unique position to leverage the value of its vast assets and take advantage of the growing demand for connectivity on a local and international scale. Its solid growth momentum and its local and international partners’ ongoing trust are clear indications of this.
Net profit increased by 39% to EGP 5.2 billion
With a net profit margin of 21 percent, normalised net profit increased 39 percent year over year to EGP 5.2 billion after accounting for EGP 0.7 billion in foreign exchange loss in Q1 2025 and EGP 0.2 billion in foreign exchange gain in Q1 2024.
A 73 percent increase in interest expense was offset by a 3.6x increase in VFE YoY and strong operational performance, which drove this growth.
Cash CapEx fell 55 percent year over year, which is consistent with its plan to maximise expenditures while preserving operational excellence and ensuring future expansion.
With FCFF reaching EGP 3.8 billion (excluding EGP 0.2 billion in licenses), indicating an FCFF/EBITDA of 35 percent, its disciplined financial approach has resulted in strong cash flow generation.
This performance demonstrates its capacity to deploy resources effectively and fortify its financial position, and it is in line with its quarterly budget and keeps the company on track to meet its full-year goals.
Key highlights of Teelcom Egypt’s Q1 2025 result
Here are the key highlights of Telecom Egypt’s Q1 2025 result:
- Total revenue increased by 42 percent YoY to reach EGP 24.8bn, led by strong growth momentum in the retail segment, contributing 57% to total revenue and driving 56 percent of the YoY revenue growth.
- Customer base increased YoY across Mobile, Fixed Broadband, and Fixed Voice by 10 percent, 8 percent, and 4 percent, respectively.
- EBITDA grew by 49 percent YoY to EGP 10.9bn, reaching a robust margin of 44 percent, up from 42 percent in the previous year.
- Income from VFE increased by 3.6x YoY to reach EGP 3.2bn.
- Normalised net profit reached EGP 5.2bn, reflecting a 39 percent YoY increase and a 21% net profit margin.
- In service CapEx reported EGP 2.3bn (9% of sales), while Cash CapEx reported EGP 6.8bn (27 percent of sales).
- Net debt/EBITDA (annualised) improved to 1.6x compared to 2.2x in Q4 2024.
- FCFF (excluding EGP 0.2bn for licences) amounted to EGP 3.8bn, implying a FCFF/EBITDA ratio of 35 percent.
Mohamed Nasr, Managing Director and Chief Executive Officer, commented: “In a dynamic, capital-intensive industry that demands continuous investment and innovation to secure long-term growth, we remain focused on optimising our capital structure, enhancing profitability, and strengthening cash flow generation. Guided by a clear strategic vision that aligns with the Sustainable Development Goals and integrates leading ESG practices, and reinforced by strong partnerships and a highly committed team, we are well-positioned to deliver long-term, sustainable value to our stakeholders. Our commitment to operational efficiency and financial resilience gives us confidence in maintaining this positive momentum and unlocking further growth in the quarters ahead.”