Telecom Egypt Q1 result beats forecast
Cairo, May 14, 2013
Telecom Egypt (TE) reported first-quarter revenue of 2.72 billion Egyptian pounds ($390.1 million), up 1.4 percent from the same period last year and beating an average forecast of 2.59 billion based on five analysts' forecasts.
The landline monopoly, in which the government owns 80 percent, on Tuesday posted a net profit of 858 million Egyptian pounds and earnings before interest, taxes, depreciation and amortization (EBITDA) of 947 million.
The average forecast for the company, whose data services are helping offset lower fixed-line income, was for net profit of 595.34 million pounds, on the basis of figures from six analysts polled by Reuters.
The average forecast from three analysts for EBITDA was 944.67 million.
Commenting on the results, Mohamed Elnawawy, TE's managing director and chief executive, said in statement the company had achieved a modest increase in revenue against the backdrop of Egypt's tough economic conditions in the wake of the 2011 uprising that ousted President Hosni Mubarak.
He said the company had been offering promotions for internet and data services to boost growth.
"We do see growth in our retail segment of our business via Telecom Egypt Data, for which revenues alone grew 28.9 percent in the first quarter of 2013, compared with the same period one year ago," he said.
"Increasing use of smart phones and the growth in internet penetration have played an important role and Telecom Egypt is well placed to meet the demands of an increasingly connected and mobile population," Elnawawy said. - Reuters
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