arrow caller cards chat check extend facebook google-plus headset instagram left-arrow linkedin m3ak map multiplication pause-btn pdf phone play-btn play right-arrow search triangle twitter youtube ar-lang en-lang logo-ar

Press Releases

Q1 2024 results: Strong growth momentum sets the tone for the year

30 May 2024

Q1 2024 key highlights

  • Consolidated revenue grew 25% YoY to reach EGP 17.5bn, mainly on the back of continued growth in data, which accounted for 62% of total revenue growth, followed by capacity sales and IDD, contributing 17% and 11% to revenue growth, respectively.
  • Customer base grew across the board: Fixed voice and broadband up 9% and 8% YoY, respectively, while mobile customers increased by 4% YoY to reach 13mn.
  • EBITDA increased 19% YoY, landing at EGP 7.3bn, with a notable 42% margin. This performance underscores the company’s robust organic growth, including the impact of the strategic price adjustments.
  • Operating profit landed at EGP 3.6bn, down 5% YoY due to 41% higher D&A costs YoY, in addition to provisions recorded during the quarter.
  • Net profit reported EGP 3.9bn, with a 22% margin, marking a modest 2% increase YoY, as the robust financial performance was partially offset by the 2.2x hike in the interest expense, the 41% YoY increase in D&A, and the flat income from associates, mainly due to the currency devaluation.
  • FCFF amounted to EGP -4.7bn (EGP 1.6bn excluding mobile licenses CapEx), implying an FCFF/EBITDA ratio of -65%.
  • In-service CapEx, excluding the license fee, landed at EGP 1.6bn (representing 9% of revenues), while cash CapEx, including the license fee, reached EGP 15.0bn, recording an 86% cash CapEx to sales ratio.
  • Net debt/EBITDA (excluding vendor finance) recorded 2.1x vs. 1.9x in Q4 2023, despite gross debt being inflated by +62% QoQ due to the revaluation of our foreign-currency debt, with no additional debt drawn.

Mohamed Nasr Eldin, Managing Director and Chief Executive Officer, commented:

“I’m glad to report the continuation of our growth momentum at the beginning of the year. Our Q1 2024 operational and financial results reflect the resilience of our business in the face of macroeconomic challenges. Our top line increased by 25% YoY, reaching EGP 17.5bn, recording the highest quarterly revenue to date. Our EBITDA grew 19% YoY, amounting to EGP 7.3bn, despite the inflationary pressures.

We remain committed to enhancing our free cash flow in the period ahead through several strategic initiatives, including the phasing out of our CapEx, without humbling the growth momentum we have achieved.

As the year progresses, we will focus on enhancing our cost efficiency and on monetizing our assets, particularly those that generate returns in foreign currency. In addition, we will soon begin to harness the power of our newly awarded 5G license and maximize the impact of our diverse commercial offerings for the advantage of our customers. I can confidently say we are poised for the next phase of growth across all areas of our business. We have many opportunities to pursue and will continue executing our strategy, focusing on our core strengths to better serve our customers, and increase shareholders' value.”