Page 16 - SAMENA Trends - August 2019

REGIONAL & MEMBERS UPDATES SAMENA TRENDS

Telecom Egypt Announces Its Q2 2019 Financials

Telecom Egypt has announces its Q2 2019 a margin of 29% and net profit would recognition of PEACE cable revenue that
results ending 30 June 2019. land at EGP 2.9bn. was introduced last April also contributed
H1 2019 key highlights • Normalized net profit increased 41% to the 24% YoY top line growth. We are
• Consolidated revenue totaled EGP YoY as a result of forex gains, EBITDA very pleased with the launch of WE SPACE
12.7bn, increasing 25% YoY on the back growth and the rebound in Vodafone’s internet offerings that represent a shift in
of higher data services and increased investment income. the Egyptian broadband market through
cable projects revenue mainly owed to • In-service CapEx intensity reached 29% the introduction of high speed bundles
the recognition of the USD 20mn PEACE as a result of the company’s plan to with speeds that start from up to 30
cable crossing. accelerate infrastructure and network Mbps instead of 5Mbps, allowing us to
• Customer base demonstrated improved development to complete the copper- better monetize our network investments.
trends across all segments with fixed to-fiber replacement program in 2 years Additionally, the company has completed
voice customers growing 11% YoY, fixed rather than 4, ending by 2020. the groundwork for the preparation for
broadband increasing by 19% YoY and • Net debt amounted to 10.2bn, the nationwide launch of IPTV services
mobile reporting a 29% growth. representing 1.6x of annualized EBITDA and the WE Wallet to fulfil our strategy of
• The company recorded a total cost compared to 2.1x in FY 2018. leading the market as a total ICT provider.
of EGP 1bn for the Early Retirement Adel Hamed, Group Chief Executive, In parallel to our strong revenue growth,
Program (ERP) with c2000 employees commented: “This quarter, our operational we successfully implemented cost cutting
signing up, which will be paid to the and financial performance demonstrated initiatives including the restructuring of
employees in Q3. Such cost led to the our ability to successfully execute our our debt, which lowered this quarter’s
decline of EBITDA to reach EGP2.6bn strategy and maximize our return on interest costs, and the activation of the
and net profit stabilized at EGP 2.1bn. investment by enhancing the quality of our early retirement program that will further
• Excluding the ERP, EBITDA would reach services, which was clearly reflected in the reduce our expenses on the short-run.”
EGP 3.6bn, growing 11% YoY recording notable growth of our data revenue. The

VIVA Wins Golden Strategic Award 2019

Viva, Kuwait’s fastest-growing and most
developed telecom operator, announced
that it has been recognized with the
“Golden Strategic Award 2019” for the best
website nationwide, at the annual event
held by the Excellence Awards Academy
- Dubai for the Golden Shield Awards for
Smart Websites and Applications, and
social media platforms across the Pan Arab
region. On this occasion, Mr. Abdulrazaq
Bader Al-Essa, Corporate Communications
Director at VIVA said: “The award reflects
our excellence in providing modern
digital services to our customers that
meet different needs and with ease and
flexibility. VIVA always endeavors to foster
its leading position in the local and regional
telecommunications market, through
a suite of world-class digital products,
services and solutions.” He added: “The an important portal that VIVA is constantly provide them with ease and comfort, and
VIVA website and its application, including seeking to update, to communicate with keep them posted with the latest offers
its official social media platforms, create its customers, respond to their inquiries, and packages.”
16 AUGUST 2019