FY 2024 Results: Turning Market Shifts into Growth Opportunities
27 February 2025
FY 2024 Key Highlights
"Telecom Egypt continues to lead the Egyptian telecommunications market with outstanding performance during 2024. The Egyptian market is promising and filled with growth opportunities, which Telecom Egypt is well-positioned to seize while navigating any regional or global economic challenges with resilience and a steadfast commitment to delivering on its strategic priorities – reinforcing its position as a strong and reliable partner for all domestic and global stakeholders.
We successfully closed the year by a remarkable growth, with total revenue increasing by 45% YoY to reach EGP 82 billion. EBITDA grew by 45% YoY, maintaining a strong margin of 40%. This performance reflects robust top-line growth and disciplined cost-optimization efforts, enabling us to achieve our target margins despite persistent inflationary pressures. However, we are now witnessing signs of cost-base stabilization. This reflects the recent easing of inflationary pressures and a shift to a new, more predictable cost structure, providing greater clarity for future planning.
Organically, our core business segments performed exceptionally well. The Retail segment recorded 42% YoY growth, driven by an expanding customer base and the successful implementation of price adjustments earlier in the year and again in December. Data revenue remained the primary growth driver for this segment, expanding by 48% YoY, fueled by the rapid adoption of bandwidth-intensive applications, increased smartphone penetration, and the growing shift toward cloud-based services. The proliferation of video streaming, online gaming, and IoT-enabled solutions has amplified demand for high-speed, low-latency connectivity, reinforcing our network’s critical role in supporting Egypt’s evolving digital ecosystem.
The Wholesale segment delivered strong 48% YoY growth, mainly driven by the growth in International Calls, Domestic Infrastructure Services, and Capacity Sales, contributing 16%, 6%, and 5% to total revenue growth, respectively. Telecom Egypt remains a key global connectivity hub, leveraging its extensive submarine cable infrastructure and strategic geographic position. Throughout the year, we signed multiple agreements to monetize assets, expand subsea capacity, and support rising global data traffic. These efforts strengthen our role in enabling international connectivity while capitalizing on increasing demand from cloud providers, content platforms, and global carriers.
Net profit stood at EGP 10.1 billion, marking a 14% YoY decline, primarily due to the EGP 4.9 billion in non-recurring FX losses and EGP 0.6 billion in early retirement compensation.
Excluding these one-offs, normalized net profit reaches EGP 14.3 billion, reflecting a 22% YoY increase and a 17% margin. Excluding the mobile license fees, FCFF recorded EGP 4.4bn, delivering on our target to achieve a positive free cash flow to firm by year-end, and reflecting the company’s strong cash flow generation capabilities. We recognize that the volatile macroeconomic environment over the past two years has presented significant challenges to our profitability and cash flow. Nevertheless, our business fundamentals remain strong, and we have taken proactive measures to optimize our capital structure, enhance profitability, and improve cash flow. These efforts reflect our unwavering commitment to addressing the concerns of our shareholders and investors while strengthening our long-term financial position.
The strong foundations we established in 2024 position us for sustainable growth in the years ahead. We expect to deliver robust financial results in 2025, supported by a strengthened financial position, disciplined capital allocation, and robust operational performance, driven by our vast fixed fiber network and our best-in-the-market mobile network, enabling us to deliver premium, fully-integrated services to our customers. Reflecting our confidence in the company’s solid performance and our commitment to delivering shareholder value, the Board of Directors has proposed a dividend of EGP 1.50 per share for 2024, subject to the general assembly’s approval.”
- Total revenue increased by 45% YoY, driven primarily by a 48% YoY increase in Data revenue, contributing 41% to the overall growth, followed by a 68% surge in International Direct Dialing (IDD) revenue and a 21% YoY rise in Domestic Infrastructure Services revenue.
- Customer base increased YoY across Mobile, Fixed Broadband, and Fixed Voice by 13%, 8%, and 6%, respectively.
- EBITDA witnessed a 45% YoY increase, recording a 40% margin.
- Normalized net profit (excluding EGP 4.9bn FX losses and EGP 0.6bn early retirement compensation) reached EGP 14.3bn, marking a strong 22% YoY increase. This growth was driven by robust operational performance and a 64% rise in VFE income, offsetting the impact of a 48% increase in D&A and a 1.5x rise in interest expenses caused by the EGP devaluation.
- In-service CapEx reported EGP 19.8bn (24% of sales), while Cash CapEx reported EGP 35.1bn (43% of sales).
- Net debt/EBITDA recorded 2.2x compared to 1.7x in FY 2023, given the 64% upside in gross debt due to the revaluation of foreign-currency-denominated debt.
- FCFF, excluding the mobile license fees of c. EGP 6bn, reached EGP 4.4bn.
"Telecom Egypt continues to lead the Egyptian telecommunications market with outstanding performance during 2024. The Egyptian market is promising and filled with growth opportunities, which Telecom Egypt is well-positioned to seize while navigating any regional or global economic challenges with resilience and a steadfast commitment to delivering on its strategic priorities – reinforcing its position as a strong and reliable partner for all domestic and global stakeholders.
We successfully closed the year by a remarkable growth, with total revenue increasing by 45% YoY to reach EGP 82 billion. EBITDA grew by 45% YoY, maintaining a strong margin of 40%. This performance reflects robust top-line growth and disciplined cost-optimization efforts, enabling us to achieve our target margins despite persistent inflationary pressures. However, we are now witnessing signs of cost-base stabilization. This reflects the recent easing of inflationary pressures and a shift to a new, more predictable cost structure, providing greater clarity for future planning.
Organically, our core business segments performed exceptionally well. The Retail segment recorded 42% YoY growth, driven by an expanding customer base and the successful implementation of price adjustments earlier in the year and again in December. Data revenue remained the primary growth driver for this segment, expanding by 48% YoY, fueled by the rapid adoption of bandwidth-intensive applications, increased smartphone penetration, and the growing shift toward cloud-based services. The proliferation of video streaming, online gaming, and IoT-enabled solutions has amplified demand for high-speed, low-latency connectivity, reinforcing our network’s critical role in supporting Egypt’s evolving digital ecosystem.
The Wholesale segment delivered strong 48% YoY growth, mainly driven by the growth in International Calls, Domestic Infrastructure Services, and Capacity Sales, contributing 16%, 6%, and 5% to total revenue growth, respectively. Telecom Egypt remains a key global connectivity hub, leveraging its extensive submarine cable infrastructure and strategic geographic position. Throughout the year, we signed multiple agreements to monetize assets, expand subsea capacity, and support rising global data traffic. These efforts strengthen our role in enabling international connectivity while capitalizing on increasing demand from cloud providers, content platforms, and global carriers.
Net profit stood at EGP 10.1 billion, marking a 14% YoY decline, primarily due to the EGP 4.9 billion in non-recurring FX losses and EGP 0.6 billion in early retirement compensation.
Excluding these one-offs, normalized net profit reaches EGP 14.3 billion, reflecting a 22% YoY increase and a 17% margin. Excluding the mobile license fees, FCFF recorded EGP 4.4bn, delivering on our target to achieve a positive free cash flow to firm by year-end, and reflecting the company’s strong cash flow generation capabilities. We recognize that the volatile macroeconomic environment over the past two years has presented significant challenges to our profitability and cash flow. Nevertheless, our business fundamentals remain strong, and we have taken proactive measures to optimize our capital structure, enhance profitability, and improve cash flow. These efforts reflect our unwavering commitment to addressing the concerns of our shareholders and investors while strengthening our long-term financial position.
The strong foundations we established in 2024 position us for sustainable growth in the years ahead. We expect to deliver robust financial results in 2025, supported by a strengthened financial position, disciplined capital allocation, and robust operational performance, driven by our vast fixed fiber network and our best-in-the-market mobile network, enabling us to deliver premium, fully-integrated services to our customers. Reflecting our confidence in the company’s solid performance and our commitment to delivering shareholder value, the Board of Directors has proposed a dividend of EGP 1.50 per share for 2024, subject to the general assembly’s approval.”