Africazine:
Telecom Egypt is expanding its digital infrastructure following a significant rise in earnings and cash flow. The state-controlled operator reported a 47% increase in net profit, positioning itself for a robust five-year investment strategy.
In the first half of 2026, Telecom Egypt’s net profit reached EGP15.4bn, driven by a 17% rise in revenue to EGP59.2bn. The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) grew by 20% to EGP26.4bn, reflecting strong performance across its data services and international traffic.
Telecom Egypt Sees Strong Profit Growth
Telecom Egypt’s financial results highlight a significant upward trend. The company’s net profit margin climbed to 26%, up five percentage points from the previous year. This growth was supported by a 24% increase in consumer revenue and a 16% rise in enterprise revenue.
Data services were a key growth driver, with revenue increasing by 26% year-on-year. International incoming-call revenue surged by 32%, benefiting from an 18% rise in traffic and favorable foreign-exchange conditions. These results underscore the company’s strategic focus on enhancing its digital offerings.
Telecom Egypt: Key figures on net profit
- Net profit: EGP15.4bn
- Revenue: EGP59.2bn
- EBITDA: EGP26.4bn
- Free cash flow: EGP10bn
- Net debt to annualised EBITDA: 1.2 times
Future Plans for Digital Expansion
Telecom Egypt is committed to expanding its data centre capabilities and enhancing its digital infrastructure. The company plans to carve its data-centre assets into a wholly owned subsidiary, which will serve as a new revenue stream. This strategic shift aims to retain full ownership and maximize potential returns.
Additionally, the company is focused on accelerating fibre-to-the-home (FTTH) deployment and expanding its 5G network. These initiatives are part of a broader five-year plan aimed at improving returns and developing new revenue sources.
Next Steps for Telecom Egypt
- Continue expanding data centre operations
- Accelerate fibre-to-the-home deployment
- Expand 5G network capabilities
- Implement new revenue strategies under the five-year plan
Telecom Egypt's strong financial performance sets the stage for ambitious digital expansion.
