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EGP 14bn total TE revenues for FY 2016  - Daily News Egypt

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EGP 14bn total TE revenues for FY 2016 

EGP 2.7bn total profits with 10.9% decline compared to last year


Telecom Egypt (TE) has revealed its business results for the fiscal year (FY) ending on 31 December 2016, based on the aggregated fiscal lists. The results have shown a strong financial and operational performance supported by the activity of all business units, especially the retail business unit, which has witnessed a growth in demand of data services.

Total consolidated results reached EGP 14.1bn for FY 2016, compared to total revenues of 2015 estimated at EGP 12.2bn, marking a 16% increase.

Net profit after tax reached EGP 2.7bn with a decline estimated at 10.9% compared to the same period in the previous year.

The market share of ADSL during 2016 reached 76% with an increase of 573,000 subscribers.

Commenting on the results, Tamer Gadalla, managing director and CEO of TE, said that 2016 was a prominent year in the company’s business and marked its transformation into an integrated telecom operator. The results of the business reflect the systematic vision and strategy, which focus on serving customers and committing to the integrated regional operational model which paid off and achieved an added value for the company. TE has managed to achieve exceptional results for 2016 in terms of financial and operational performance.

The company’s head attributed the net profits to the company’s precautions in the last quarter of 2016 to protect the rights of shareholders and workers, as well as protecting the rights of the company throughout the upcoming years, in addition to some other factors related to supporting the rights of workers through the Loyalty and Belonging Fund and the potential financial commitments from taxes. There are also some external impacts that the company witnessed in 2016, including the decline of the investments share in Vodafone Egypt due to the flotation of the Egyptian pound.

In terms of the growth of business units, Gad Allah pointed out that the home business unit has continued its strong performance during the fourth quarter of 2016, achieving EGP 1.1bn with a 20.5% increase compared to the same period of 2015. There was also an increase in data services during this quarter of 37.8% compared to the fourth quarter of 2015, supported by the increased demand by customers on these services. The home business unit has marked a good performance, achieving sales of EGP 4.2bn, compared to EGP 2.6bn for 2016, an 18.9% increase compared to 2015.

The enterprise unit has continued its growth during the fourth quarter of 2016, achieving an increase of 36.6% with total revenues worth EGP 763m compared to EGP 558m during the same period in 2015. The growth is supported mainly by a 53% increase in the revenues of data services and an increase in voice services revenues of 31.5%, which has led to total revenues worth EGP 2.4bn with a 25.7% growth compared to the same period of the previous year.

The international carriers’ business unit has achieved revenues worth EGP 3.2bn during 2016, compared to EGP 2.9bn in 2015, an 8.2% increase.

The increase in revenues was a result of the increased demand from telecommunications companies working in the Egyptian market on messaging and infrastructure services.

The international carriers’ business unit has witnessed a growth in the fourth quarter of 2016 with a 58.2% increase, achieving revenues of EGP 1.1bn, compared to the fourth quarter of 2015. Revenues in 2016 reached EGP 3.2bn, marking a 7.6% increase over 2015.

The business unit of international cables and networks has achieved an exceptional growth in the fourth quarter of 2016, where revenues reached EGP 563m, a 58% increase. The growth was supported by an increase in the sale of capacities, which brought EGP 403m with a 55.7% increase compared to 2015.

The cables and networks unit has achieved revenues worth EGP 1.1bn in 2016 with an increase of 39.5% compared to 2015.

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