The 2Africa consortium, comprised of China Mobile International, Meta, MTN GlobalConnect, Orange, stc, Telecom Egypt, Vodafone and WIOCC, announced today the first landing of the 2Africa cable - in Genoa, Italy. The landing sets the tone for more landings in the coming months as the cable is extended to a total of 46 locations by the completion of the project in 2024.

Announced in May 2020, the 2Africa subsea cable system together with its Pearls extension are designed to deliver seamless international connectivity to approximately 3 billion people, representing 36% of the global population and connecting three continents, Africa, Europe and Asia. At 45,000km, it will be the longest subsea cable ever deployed, serving communities that rely on the internet for services from education to healthcare and business, with all experiencing the economic and social benefits that come from this increased connectivity. 

Vodafone, the 2Africa landing party in Genoa, has partnered with Equinix to land the cable directly into the Equinix Carrier Neutral Data Center (CNDC), with Retelit delivering the fronthaul. As with all 2Africa cable landings, capacity will be available to service providers in Genoa on a fair and equitable basis, encouraging and supporting the development of a healthy internet ecosystem. 

Working with a local Italian operator, 2Africa has also developed a new terrestrial route connecting the Genoa cable landing station (CLS) directly to major CNDCs in Milan. Good progress on the survey work and manufacturing continues with the 2Africa project remaining on track for completion in 2024.

Telecom Egypt (WE), Egypt’s first integrated telecom operator, signed a cooperation protocol with Beverly Hills for Cities & Resorts Management to provide integrated telecommunications services to Beverly Hills Compound. The agreement was signed by Mr. Mohamed Abu Talib, the Executive Vice President of Commercial Affairs in Telecom Egypt, and Mr. Karim Husseini CEO of Beverly Hills company.

Under this protocol, Telecom Egypt (WE) is to implement the technology infrastructure of the closed Beverly Hills Urban Project and the fiber-optic network supply required to deliver high-speed Internet to all residential, administrative and commercial units of the project to make all integrated telecommunications services including fixed phone, high-speed Internet, IPTV Internet broadcasting and other advanced telecommunications services available.

Eng. Adel Hamed, Managing Director and CEO of Telecom Egypt said "We are happy to sign this protocol with Beverly Hills for Cities & Resorts Management, to provide the latest integrated telecommunications services in its projects, based on the advanced infrastructure and extensive technical expertise of Telecom Egypt, which enables it to provide state-of-the-art telecommunications and information technology services to major real estate projects in Egypt in line with the latest telecommunications technology in the world."

For his part, Karim Husseini, CEO of Beverly Hills for Cities & Resorts Management, said that "The company's management has signed a strategic cooperation protocol with Telecom Egypt (WE) for its previous experience in this field as it is one of the leading companies in providing the best service for high-speed Internet via fiber-optic cables and other advanced telecommunications services in order to provide the highest level of service to the people of Beverly Hills. "

Mohamed Aboutaleb, , the Executive Vice President of Commercial Affairs in Telecom Egypt said: "The collaboration with Beverly Hills for Cities and Resorts Management Company emphasizes the company's ability to gain the confidence of Egypt's major real estate developers and its ability to provide the best level of telecommunications services that keep pace with the evolving needs of customers."

April 2022

Telecom Egypt, Egypt’s first integrated telecom operator and one of the largest subsea cables operators in the region, announces that EG-IX, the first open access internet exchange in Egypt, is live and available for customers as of today. The new Internet Exchange, powered by AMS-IX, is intended to enhance the digital experience of internet users in Egypt, Africa, and the Middle East.

EG-IX is hosted inside Telecom Egypt’s largest certified tier III data center located in Smart Village in West Cairo and named Regional Data Hub (RDH). RDH is connected with advanced fully meshed network securing the access to 14 submarine cable systems, to be increased to 18 cable systems by 2025. EG-IX is based on the IX-as-a-Service (IXaaS) solution offered by AMS-IX, the world leading interconnection platform service provider, and will act as an open access Internet Exchange Platform for large content delivery network, application and cloud providers and telecom carriers who are looking to enhance the digital experience of end customers in MEA region.

IXaaS solution supports Telecom Egypt to set up and run a state-of-the-art internet exchange point in Egypt capitalizing on more than 25 years of AMS-IX’s experience in such field.

EG-IX Platform will support Telecom Egypt in its efforts to improve the quality of internet services in Egypt. Moreover, this exchange point will strengthen Egypt’s position as an international connectivity hub, further highlighting the potential of the growing digital sector in the region.

Adel Hamed, Managing Director and Chief Executive Officer, commented:

"We are pleased to announce that EG-IX, which is hosted within the RDH, the largest tier III certified data center in Egypt is going live now in partnership with AMS-IX. The launch of the EG-IX platform will support Egypt’s digital transformation plans. This step will not only enhance the country’s internet ecosystem, but also support the ongoing regional efforts to establish a regional digital ecosystem that aggregates internet traffic from Africa and the Middle East."

Peter van Burgel, AMS-IX CEO, said:

“The launch of EG-IX is a great milestone for AMS-IX, Telecom Egypt and the Internet community. This new Internet Exchange will enable networks from all over the world to directly connect and exchange traffic, which will lower the cost of peering, reduce latency, and enhance the quality of the Internet for countless end users.”

02 June 2022

Telecom Egypt and Etisalat Misr signed six new commercial and strategic agreements, a step that comes within the framework of a joint cooperation between both parties to maximize their returns and support the development of new technologically advanced services to end users in the local market.

The agreements entail the provisioning of services by Telecom Egypt to Etisalat Misr including infrastructure, access and voice services allowing Etisalat to provide premium services to its customers nation-wide capitalizing on Telecom Egypt’s network, with the largest agreement being a 10-year transmission agreement with a total value of EGP 12.5bn. This agreement will secure the current and future expansions of Etisalat Misr’s network on Telecom Egypt’s infrastructure. Moreover, a Fiber to the site (FTTS) agreement was signed, a new cooperation between both companies, whereby Telecom Egypt will provide access services with ample capacities on optical fiber for Etisalat Misr’s mobile towers. These agreements come in addition to some amendments to a number of existing agreements.

The two companies also signed a modification to the national roaming agreement signed earlier in 2017, to enable Telecom’s Egypt’s demand for growing capacities on Etisalat Misr’s network during the year 2022, beside setting the ground for a more flexible and appropriate mechanism for the expiration of this agreement, which is due by end of year.

Adel Hamed, Telecom Egypt’s Managing Director and Chief Executive Officer, commented:
"We are very happy to have signed these agreements with Etisalat Misr, as this step fosters the cooperation between both companies to best serve their customers. Over the past years, we have been investing heavily in upgrading our backbone network and we are working on maximizing the returns on our infrastructure investment and continue to serve the local telecom market."

Hazem Metwally, Chief Executive Officer of Etisalat Misr, said:
“We are proud of our collaboration with Telecom Egypt, which affirms our leadership within the technology and telecom fields, playing a vital role in leading the digital future in Egypt. We are keen on investing in further strengthening and upgrading our network to meet the needs of Egypt’s market for data usage. Such investments will positively reflect in the quality of services provided to end users and comes in-line with the country’s digital transformation strategy as well as our mission to enrich people’s lives. During the upcoming period, these agreements will play an integral role in the company’s solutions that will be introduced for the first time in the Egyptian market.”

Consolidated revenue landed at EGP 20.4bn, up 17% YoY, mainly attributed to an 18% spike in retail revenue and 16% increase in wholesale revenue due to higher data, infrastructure, and capacity sales.

Customer base grew YoY on all fronts, with fixed voice and data subscribers increasing by 10% and 13%, respectively. Mobile customers increased by 44%, which included 3.6mn additional subscribers comprising 2.1mn related to the schools project and social solidarity initiatives.

EBITDA amounted to EGP 8.1bn, recording a strong 40% margin due to an improved revenue mix.

Net profit came in at EGP 3.8bn; excluding non-operational items, it reached EGP 4.1bn, recording a 16% YoY growth, thanks to the robust operational performance, higher Vodafone investment income, and lower interest expense, which all together overshadowed the 27% increase in D&A costs.
 

Net operating cash flow landed at EGP 8.3bn, representing 103% of H1 2022 EBITDA.

In-service capex/sales recorded 14%, while cash capex/sales recorded 39% (31% excluding spectrum fees), landing at EGP 8bn.

Net debt to annualized EBITDA reached 1.1x down from 1.2x in Q1 2022, with total debt down 6% QoQ.

H1 2022 FCFF organically reached EGP 0.6bn (noting that FCFF would reach EGP 1.8bn after considering the dividends received from Vodafone Egypt in July 2022).

Adel Hamed, Managing Director and Chief Executive Officer, commented:

"I am pleased with our excellent interim results year-to-date despite the myriad of global challenges, which include devaluation, inflation, and supply chain pressures. We’ve clearly demonstrated our resilience, as revenue grew organically across all business units. H1 2022 top line grew 17% YoY on strong retail performance with data continuing to be the main driver, comprising 52% of total top line growth. Furthermore, we still managed to maintain healthy margins even though we brought-forward the 2023 salary increase to April 2022—as an incentive for our employees during these challenging times. Additionally, our optimum debt structure enabled us to absorb the adverse effect of the EGP’s devaluation, resulting in a flat effective interest rate of 5.5%. Accordingly, our robust performance has filtered through to an organic FCFF of EGP 0.6bn, in addition to EGP 1.2bn dividends received from Vodafone Egypt in July 2022 under the modified Shareholder’s Agreement.

We look forward to preserving the momentum witnessed on all fronts by monetizing our local & international infrastructure assets to capture the market potential while also rationalizing our incurred costs without compromising on the quality of services provided to end users. On that front, we are eager to leverage our newly-signed national roaming services agreement with Orange Egypt. This step that mirrors our constant efforts to develop our services portfolio while boosting the mobile business margin & the company’s profitability at large.

As always, we will pursue value-accretive opportunities in the market to steer the company towards more success, ultimately maximizing the return to our shareholders.”

13 December 2022

Telecom Egypt, Egypt’s first integrated telecom operator and one of the largest subsea cables operators in the region, and Grid Telecom, a wholly owned subsidiary of the Independent Power Transmission Operator (IPTO) in Greece, signed a collaboration agreement to build a subsea system connecting Egypt and Greece. Egypt’s Minister of Telecommunications and Information Technology, Dr. Amr Talaat, witnessed the signing ceremony held in Cairo, Egypt. The Managing Director and CEO of Telecom Egypt, Adel Hamed, and the Chairman and CEO of IPTO, Manos Manousakis, signed the agreement.

This agreement is a testimony of the strategic cooperation between Telecom Egypt and Grid Telecom. It comes in line with Telecom Egypt's strategy of strengthening its infrastructure, expanding its international network, and increasing its entry points to Europe by providing an eastern gateway via Greece through the new subsea system. The system will connect Port Said in Egypt to Crete island--making it the shortest, lowest latency, Mediterranean path between Egypt and Europe, extending northwards to the Balkans region and adjacent important destinations in Central and Western Europe, and southwards to the Arabian Peninsula and other regions in Africa and Asia. This also reinforces Egypt’s strategic position as an international telecommunications hub linking the East and West.

Earlier this year, Telecom Egypt and Grid Telecom signed a strategic Memorandum of Understanding, which set the ground for the exploration of different connectivity options between Greece and Egypt--through existing and future optical fiber links. This was followed by the signing of a Heads of Agreement to build this new subsea system extending the mutual international reach to neighboring countries.

The Minister of Communications and Information Technology of Egypt, Dr. Amr Talaat, stated that:

“This significant agreement, which intends to create a new subsea system connecting Egypt and Greece across the Mediterranean Sea, strengthens Egypt's strategic capacity in the realm of international subsea cables by opening a new landing site in eastern Europe on the Greek coast. It also provides a strategic advantage, particularly given that more than 90% of the data flow between East and West passes via Egyptian territorial waters and lands.” He further added that the signing of this agreement is the culmination of ten months of hard work since the start of the negotiations during his February visit to Greece where he witnessed the signing of a Memorandum of Understanding between Telecom Egypt and Grid Telecom with the aim of connecting the two countries using subsea cable systems.

The Managing Director and CEO of Telecom Egypt, Adel Hamed, commented:

"Telecom Egypt is continuously developing and extending its international infrastructure. Our collaboration with Grid Telecom will add explicit value to our robust reach worldwide to more than 140 destinations in over 60 countries. Our investments in new systems and solutions reiterate our leading position thanks to the multiple layers of our infrastructure diversity, which include establishing new subsea landing stations and crossing routes that will cater for the rising global demand for international capacities.”

The Chairman and CEO of IPTO, Manos Manousakis, stated:

"IPTO Group is taking the initiative to transform Greece into a critical energy and data hub of high geopolitical value at the crossroads of Europe, Africa and Asia. In this context, the fact that Egypt is a key international telecommunications hub for all subsea cables from East to West, creates strong synergies and win-win business opportunities. We are very pleased that the cooperation between IPTO’s subsidiary Grid Telecom and Telecom Egypt has culminated in building this subsea system, bringing a new international route that will enhance the strategic role of Crete island as a neutral open-access connectivity node in the wider Balkans – Mediterranean region."

21 June 2022

Telecom Egypt, Egypt’s first integrated telecom operator and one of the largest subsea cables operators in the region, and Grid Telecom, a wholly owned subsidiary of the Independent Power Transmission Operator (IPTO) of Greece, signed Heads of Agreement to connect Greece and Egypt by extending a branch from a major subsea cable system, which is currently being laid across the Mediterranean Sea. The agreement was signed at Telecom Egypt’s headquarter in Cairo by the Managing Director and CEO of Telecom Egypt, Adel Hamed, the Chairman and CEO of IPTO, Manos Manousakis and the Director of Grid Telecom, George Psyrris.

The planned connectivity between Egypt and Greece will serve the increasing data traffic between Africa, Asia and Europe creating a new reliable telecommunications corridor interconnecting the three continents. It will be the shortest possible path crossing the Mediterranean basin to reach the Balkans region as well as other important destinations like Genoa and Marseilles over hybrid terrestrial and submarine networks.

Earlier this year, on the 9th of February, Telecom Egypt and Grid Telecom signed a strategic Memorandum of Understanding (MoU) in Athens which had set the ground for the exploration of different connectivity options between Greece and Egypt, as well as the optimal utilization of Telecom Egypt’s and Grid Telecom’s state-of-the-art networks and international reach, through their existing and future optical fiber links to neighboring countries.

The Managing Director and CEO of Telecom Egypt, Adel Hamed, commented:

“With the increasing demand for connectivity regionally and around the globe, Telecom Egypt is working on improving and extending its international network and continuously investing in new cables. Our collaboration with Grid Telecom will increase our network's resiliency and reach.”

The Chairman and CEO of IPTO, Manos Manousakis, stated:

 "The Southeast Mediterranean incubates major synergies that will contribute to the wider region's emergence as a significant hub for both data and energy. In this context, with the fact that Egypt is a key hub location for all subsea cables from East to West, we are very pleased that the cooperation between IPTO's subsidiary Grid Telecom and Telecom Egypt, will bring a new international route that will enhance the strategic role of Crete island as a neutral open-access node on the intersection of three continents."

Telecom Egypt, Egypt’s first integrated telecom operator, signed an agreement with the "LUMEN" US to create LUMEN's first regional focal point in Egypt to provide Internet services to telecommunications companies in Egypt, Africa, Asia and the Middle East, in partnership with Telecom Egypt and based on its distinct international network.

This was during an interview with Eng. Adel Hamid, Managing Director and CEO of Telecom Egypt, and Ms. Anita Murphy, the regional head of LUMEN, at the company's headquarters in London in the presence of a high-level delegation of the two companies.  

On the sidelines of this visit, a joint cooperation between the two companies was discussed in the Arab region, Africa, Asia and the Middle East.

The service is expected to start in the first quarter of 2023. The selection of Telecom Egypt by LUMEN, as a strategic partner in the region reflects great confidence in Telecom Egypt advanced infrastructure which includes the RDH Regional Data Centre in the Smart Village in Cairo, which links to 14 marine cables, reaching 18 marine cables by 2025 spanning more than 140 landing points in more than 60 countries around the world, as well as the data center in Alexandria.

LUMEN is one of the world's most important and largest Internet service providers Tier-1. Egypt's focal point is the first of its kind in Africa, Asia and the Middle East, making it a distinct step in improving the efficiency and quality of Internet services in Egypt, the region, Africa, Asia and the Middle East.

Telecom Egypt today announced the signature of a commercial agreement with Orange Egypt for national roaming services. The five-year agreement, which extends until the end of 2027, will ensure that Telecom Egypt continues to provide high-quality voice and data mobile network coverage to its customers nation-wide.

This deal comes in light of Orange Egypt winning the tender for national roaming services that Telecom Egypt issued to all mobile network operators due to the impending expiration of the current agreement. Orange Egypt submitted the best technical and financial offer in terms of value and return. This new agreement provides a number of competitive, technical, and commercial advantages that will boost the development of Telecom Egypt’s services and enhance its position in the Egyptian mobile market. It’s worth noting that the current agreement, which ends in December 2022, enabled Telecom Egypt to introduce its mobile services for the first time in 2017.

Furthermore, the agreement represents a significant milestone in the strategic relations between the two companies as it is the most advanced agreement—to date—due to the exceptional business model and extensive operational standards included in the service-level agreement. It also fulfills Telecom Egypt's continuous efforts to provide high-quality mobile services and confirms Orange Egypt's constant keenness to harness the latest technological capabilities to provide such services.

Adel Hamed, Telecom Egypt’s Managing Director and CEO, commented:

“This step confirms the depth of the strategic relationship between Telecom Egypt and Orange Egypt, and both companies' keenness to develop the telecom services in the Egyptian market. The new milestone will cement our position as a strong contender in the mobile market through the technical, commercial, and financial benefits—in particular, financial savings for our mobile call costs starting in 2023, which will improve the business line and consequently the overall margin—in line with our growing customer base. Concurrently, Telecom Egypt is committed to expanding its mobile network coverage by rolling out its mobile sites all over Egypt to provide superior telecommunication services to its customers.”

Yasser Shaker, Orange Egypt’s CEO and Managing Director, commented:

“We are pleased with signing this new agreement, which enhances the strategic cooperation between both companies and supports our strategies to provide the latest ICT services in the Egyptian market. Orange Egypt is keen on driving up investments to develop and modernize its networks in line with the latest global technologies to meet progressive customer needs.”

May 2022

Telecom Egypt today announces its Q1 2022 results for the period ending 31 March 2022.

Q1 2022 key highlights

• Consolidated revenue grew 12% YoY landing at EGP 9.4bn. The growth was mainly fuelled by higher data revenue (+22% YoY) constituting 74% of top line growth, followed by higher cable and voice revenues.
• Customer base grew across the board with fixed voice and data customers increasing by 11% and 14% YoY, respectively and mobile customers increasing by 19% YoY crossing the 10mn mark.
• EBITDA came in at EGP 3.6bn, recording a healthy margin of 38% driven by an enhanced revenue mix and continued cost optimization.
• Net profit landed at EGP 1.4bn declining 36% YoY due to non-operational items. Excluding such items including Vodafone Egypt’s one-offs, provisions, impairments and FX impact, net profit reaches EGP 1.7bn, almost flat YoY.
• In-service CapEx/sales recorded 16%, while cash CapEx reached EGP 4.8bn including the second instalment of the new spectrum.
• Net debt reached EGP 17.3bn, representing 1.2x of annualized EBITDA compared to 0.9x in FY2021 due to the EGP devaluation, without which it would have declined to 1.1x, while the effective interest rate declined to 4.6%.

Adel Hamed, Managing Director and Chief Executive Officer, commented:

“I am very proud with Telecom Egypt’s operational and financial performance during this quarter on all fronts despite encountering some challenges from global headwinds. The company continued to witness growth among its BUs, with top line growing 12% YoY and EBITDA margin reaching 38%, in line with our guidance. Retail led the growth (+16% YoY), thanks to higher data revenue driven by a growing customer base across all services and healthy ARPU trends. This growth led to organic flat operating and net profit YoY, managing to lessen the impact of higher D&A costs in light of the new spectrum acquired and the devaluation accounting treatment. We continue to focus on FCFF, which organically came in at EGP 0.7bn, excluding the payment of the new spectrum’s instalment. The company was able to navigate through several challenges this quarter and we continue to look forward to growth across the P&L and thrive for additional revenue streams and cost optimization efforts to future-proof the organization and enhance value to our shareholders. Our strategy to achieve these financial goals revolves around enhanced customer experience, we have put together an all-encompassing plan targeted at each customer touchpoint to move from improved service quality, to refined products to a consistent and convenient service to all customer groups across our different business units. Such plan will not only improve our value proposition to our customers, but also make us more efficient, available and ready for the future.”

22 February 2022

Full Press Release 

Telecom Egypt, Egypt’s first integrated telecom operator and one of the largest subsea cables operators in the region, announced that it is extending its reach through the Southeast Asia-Middle East-Western Europe 6 (SEA-ME-WE 6) subsea cable, as part of the cable’s consortium. The new cable will cross Egypt over the company’s distinctive infrastructure through trans-Egypt’s new geo diversified crossings and landing points from the other cables in the SEA-ME-WE family.

With the rising demand for connectivity coupled with the dynamic digital transformations that are triggering higher levels of data transfers from Asia to Europe, SEA-ME-WE 6 provides an additional layer of diversity and resilience for the high traffic density route between Asia and Europe, strengthening the overall network of each consortium partner. The added flexibility means service providers in the consortium can rapidly scale capacity, protect traffic from faults, and lower total cost of network ownership. The system is expected to be completed by the first quarter of 2025.

The construction has commenced on a 19,200 km-long submarine cable system connecting multiple countries between Singapore and France. The SEA-ME-WE 6 system has more fiber pairs and over double the capacities of existing SEA-ME-WE cables over its overall path. It will offer one of the lowest latencies available between Southeast Asia, the Middle East, and Western Europe, transferring more than 100 terabytes per second, the equivalent of 40,000 high-definition videos each second.

The SEA-ME-WE 6 consortium includes Bangladesh Submarine Cable Company, Bharti Airtel Ltd. (India) Dhiraagu (Maldives), Djibouti Telecom, Mobily (Saudi Arabia), Orange (France), Singtel (Singapore), Sri Lanka Telecom, Telecom Egypt, Telekom Malaysia, Telin (Indonesia), and Trans World Associates (Pakistan).

The Managing Director and CEO of Telecom Egypt, Mr. Adel Hamed, commented: 

“Our participation in SEA-ME-WE-6 is another key milestone towards our goal to diversify our submarine infrastructure and improve our global reach. We are honored to work alongside renowned global partners to contribute to improving user experience and serve customer demands for premium connectivity services in cable–landing countries. We are also pleased to provide the new cable that serves as the shortest and most reliable link between Asia, Africa, and Europe as it connects the Red and Mediterranean Seas. For years, we have succeeded in revamping our international infrastructure and increasing the geodiversity of our assets to keep pace with the rising global demand for uninterrupted high bandwidth services.”

WE, Egypt’s first integrated telecom operator, signed a cooperation agreement with ValU, the leading purchasing and later payment platform (BNPL) To enhance the evolving lifestyle in the Middle East and North Africa, to provide product installment service to customers at WE branches. The agreement was signed by Mr. Mohamed Abu Taleb, the Executive Vice President of Commercial Affairs in Telecom Egypt, and Mr. Walid Hasouna, CEO of ValU.

Under this agreement, Telecom Egypt provides installment service for the products it offers at its outlets throughout Egypt for up to 60 months without a deposit. This confirms Egypt's desire to achieve the highest level of customer satisfaction and meet their evolving needs and facilitate their access to products and goods available at its branches.

Mohamed Aboutaleb, Executive Vice President of Egyptian Commercial Affairs, Telecommunications, said: "We are pleased to sign this agreement with ValU to make the products installment service available at the company's outlets," adding that "such an agreement will allow customers of the company to obtain their different needs from the products that WE provides more easily."

Walid Hasouna, Chief Executive Officer of ValU, said: "Partnering with the main telecommunications company in the Egyptian market with an ever-growing customer base will allow ValU to expand its services to a larger number of customers." Hasouna also expressed his pleasure with this partnership, through which ValU will "add" a very important partner to its merchants’ network as well as providing innovative purchase and later payment solutions to our "WE" customer base. These partnerships are an integral part of our vision to always provide the best financial solutions to the largest customer base where we remain committed to promoting their lifestyles. "

Telecom Egypt (WE), Egypt’s first integrated telecom operator, signed a cooperation protocol with "Everest for Real Estate Development", to provide integrated telecommunications services in its administrative and commercial projects, notably the Bureau 58 Business Park project and the ZIA project. The agreement was signed by Mr. Mohamed Abo Taleb; the Executive Vice President of Commercial Affairs in Telecom Egypt, and Eng. Khaled Abdelsamie; the CEO of Everest for Real Estate Development.

According to this protocol, Telecom Egypt|WE is to execute the technological infrastructure of the Bureau 58 Business Park project and the ZIA project and extends the fiber-optics network required to supply high-speed Internet to all project administrative and commercial units of both projects, aiming at providing all integrated telecommunications services including landline, high-speed Internet services, IPTV and other sophisticated telecommunications services.

Eng. Adel Hamed, Managing Director and CEO of Telecom Egypt said "We are glad to sign this protocol with Everest for Real Estate Development, to provide the top-notch integrated telecommunications services to its projects, based on the advanced infrastructure and extensive technical expertise of Telecom Egypt, which enables it to provide state-of-the-art telecommunications and information technology services to major real estate projects in Egypt in line with the latest around the world"

On the other hand, Eng. Khaled Abd Al-Samei, CEO of Everest for Real Estate Development, said: "We were keen to collaborate with Telecom Egypt in our newest projects in New Cairo due to our interest in providing the highest levels of diverse and most flexible telecommunications services to our global corporate and restaurants’ base that has trusted our company and opened its branches in Bureau 58 Business Park and the ZIA.

Mr. Mohamed Abu-Taleb, the Executive Vice President of Commercial Affairs in Telecom Egypt remarked "Cooperation with Everest for Real Estate Development confirms the company's capabilities to gain the trust of the major real estate developers in Egypt and its ability to provide The best telecommunication services that keep pace with the evolving needs of customers.

14 June 2022

Telecom Egypt, Egypt’s first integrated telecom operator and one of the largest subsea cables operators in the region, and Aqua Comms, a leading provider of global subsea connectivity services, announced today the signature of a crossing and landing agreement for the Europe Middle-East India Connect 1 (EMIC-1) subsea cable in Egypt.

Under this agreement, Telecom Egypt will provide EMIC-1, which is a new intercontinental subsea cable and terrestrial fibre system, a seamless optical path between East Africa, Asia, and Europe. This is the first modern cable along this route, connecting up to 3 billion people to the internet and accommodating for the growing demand for data of the world's fastest growing regions. EMIC-1 ties into D9's (the owner of Aqua Comms) purpose, to improve connectivity around the world and bridge the digital divide.

EMIC-1 will land in Ras Ghareb on the Red Sea, and Port Said on the Mediterranean Sea side. The two landing stations are connected over two diverse terrestrial routes, deploying next-generation of fibre optics. The new routes are adjacent to the Suez Canal, between Suez and Port Said. Additionally, this crossing will also include a third new marine path, the Red Sea Festoon, that will link the Ras Ghareb and Suez landing stations with an option of the Suez Canal Route (a.k.a. the Al Morshedeen route), linking Port Said and Suez on the bank of the Suez Canal, offering a new level of resilience and diversity to the crossing solution.

The Managing Director and CEO of Telecom Egypt, Adel Hamed, commented:

“We are pleased to offer Aqua Comms a seamless trans-Egypt crossing for their new cable. For years, we have established tangible steps to revamp our international infrastructure and increase our assets' geodiversity to keep pace with the rising global demand for large bandwidth and global reach. We believe that EMIC-1 will be a valuable addition to the subsea cables landing in Egypt.”

Nigel Bayliff, CEO of Aqua Comms, said:

“We are delighted to work with Telecom Egypt to deliver a highly resilient and innovative solution that will be a critical part of our new EMIC-1 system. This new system will connect the key hubs in Europe of Genoa, Marseille and Barcelona with both Salalah, Oman and Mumbai, India serving these high-growth markets with best-in-class connectivity services.”

Telecom Egypt continues to expand the provision of International telecommunication services in the Middle East and sign an agreement with Orange Jordan to establish a new international route linking Iraq to Europe

Telecom Egypt, Egypt’s first integrated telecom operator and one of the largest subsea cables operators in the region, and Orange Jordan, the leading operator of integrated telecommunication services and a subsidiary of Orange Global Group, announced the signing of a strategic cooperation agreement to establish a new international route linking the State of Iraq to Europe across Egyptian and Jordanian lands.

The new track (CAB) CAIRO-AMMAN-BAGHDAD System is in line with the two companies' strategy towards expanding the delivery of the latest high-quality telecommunications services to operators in the Middle East region and specifically the Iraqi market depending on the distinct International distinguished structure of the two companies via multiple subsea cables. The two companies' networks will be integrated to provide high-quality, low-latency communications services through diversified and highly flexible routes to meet the growing demand for communications services in the Iraqi market.

The CAB system is expected to enter service during the third quarter of 2022 and once launched will be the most advanced fast track connecting Iraq to Europe, depending on Telecom Egypt’s infrastructure and Orange Jordan.

Eng. Adel Hamed, Managing Director and CEO of Telecom Egypt commented: "We are pleased to collaborate with Orange Jordan to build the new system, which will enrich the users experience in Iraq by providing services through a new highly flexible route." "We are proud to collaborate with Orange Group, our strategic partner, to develop communications infrastructure and improve the quality of services provided in the region."

Mr. Terry Marini, CEO of Orange Jordan, commented: "The new CAB route is a rich addition to the Iraqi market. Through this strategic partnership with Telecom Egypt, the company will be able to meet the growing demand for Internet services within Iraq through new high-reliability pathways that seamlessly connect Iraq with Europe. " "Orange Jordan is proud to be part of the CAB cable that will contribute to the enhancement of Internet services between Europe and Iraq, emphasizing its status as a leading digital service provider."

March 2022

Telecom Egypt cooperates with EIB to secure a €150 million investment to expand mobile broadband network

Telecom Egypt signed an agreement with the European Investment Bank (EIB) - the lending arm of the European Union - to secure a medium-term loan of € 150 million to expand Telecom Egypt’s 4G broadband network. 

The new developmental facility will be used to support Telecom Egypt in improving its mobile network coverage by deploying around 2,000 new mobile sites and installing additional capacity layers to its existing portfolio of mobile towers. The partnership, currently the EIB’s largest mobile network loan in Africa, will strengthen the network across Egypt, including less densely populated areas & enhance competition and affordability of services.

Adel Hamed, Managing Director and Chief Executive Officer, commented: 

“We are very pleased to secure this new credit line with EIB after extensive deliberations, including the presentation of our functional plan to improve our mobile network’s scale, an objective that comes in line with the bank’s priorities for developmental projects. Telecom Egypt will capitalize on its multiple financial resources, newly awarded spectrum and rich portfolio of valuable products, among other factors, to continue serving its growing customer base and strengthen its competitive position in the Egyptian telecom market.” 

Flavia Palanza, Director, EU Neighborhood Countries, European Investment Bank, said:

"This project will help accelerate large scale investment in mobile networks and ensure affordable access to digital services in Egypt. The EIB identifies the digital transformation as a catalyzer for innovation, employment and sustainable economic growth. We are pleased to partner with Telecom Egypt, a dynamic group engaged in its ambitious network expansion program, to offer a modern and broader access to connectivity throughout Egypt."

Tobias Krause, Deputy Head of Delegation, EU Delegation to Egypt said:

“Digital Transformation is a key pillar of this ambitious new phase of joint cooperation with Egypt. The EU aims to support Egyptian government efforts to secure resilient and affordable access to universal connectivity to the benefits of Egyptian citizens across the whole country. This project shows the commitment of our partners in the EIB, the EU’s lending hand, to support crucial inclusive digital infrastructure planning in Egypt. We will continue to work hand in hand with our Member States and European Financial Institutions as Team Europe to support Egypt’s human centric digital transition and to foster a sustainable, connected and inclusive economy and society.”

09 June 2022

Telecom Egypt is pleased to announce that it has received two awards in relation to the USD 500mn syndicated loan obtained in late 2021. The Europe, Middle East and Africa Finance magazine (EMEA Finance) granted TE the “best syndicated loan in North Africa” award and GCF Media Group (GFC), granted the company the “Structured Finance Deal of the Year” award. The loan was arranged by First Abu Dhabi Bank PJSC (FAB) and Mashreq Bank PSC (Mashreq).

The syndicated loan was 2.7x oversubscribed, after the 1.5x over subscription of the prior USD 500mn loan obtained in 2018, which portrays the confidence of reputable financial institutions in the company’s strategy and financial performance.

EMEA Finance is a leading information source that is dedicated to periodically report on financial events, challenges, opportunities and triumphs in emerging European, Middle Eastern and African financial markets, while GFC Media Group is specialized in organizing financing and investment conferences and events to improve connectivity, across the globe, between companies that are looking to raise capital and investors seeking to deploy it.

Adel Hamed, TE’s Managing Director and Chief Executive Officer, commented:

“We are happy to have received these 2 awards in recognition of our efforts to maintain an optimized capital structure that would support the company’s investment strategy and its profitability targets. We thank the arrangers of the syndication FAB and Mashreq for persistently believing in our efforts to improve the company and their continuous support to reach a structure that best fits our needs as well as the lenders. I would also like to thank Telecom Egypt’s multiple teams who worked on this syndication with our partner banks.

The new acquired facility was utilized to restructure debt maturities and lessen the finance costs, in line with the cash flow generation of the company, which has in turn supported Telecom Egypt achieve its operational and financial targets. Our strategy going forward is to deliver a value creating experience for our customers and we believe this will future-proof the organization and allow us to continue to deliver a progressive value to all our stakeholders.”

14 November 2022

9M 2022 key highlights

• Consolidated revenue increased by 22% YoY to report EGP 32.3bn, thanks to higher revenues from both data (+21% YoY) and cable projects—representing 39% and 30% of the total growth, respectively.
• Customer base grew on all fronts, with fixed voice reaching 11.4mn subscribers (+8% YoY), fixed broadband reaching 8.6mn subscribers (+12% YoY), and mobile subscribers reaching 11.9mn (+54% YoY).
• EBITDA landed at EGP 13.3bn, achieving a strong margin of 41% driven by an improved revenue mix.
• Operating profit landed at EGP 8.3bn, increasing by 30% YoY, overshadowing the 25% D&A increase.
• Net profit reached EGP 6.2bn; however, excluding one-offs (Vodafone reversals, provisions and FX impacts) normalized net profit grew 25% YoY to record EGP 7.1bn.
• In-service capex reported EGP 5.2bn, implying in-service capex/sales of 16%, while cash capex reported EGP 11.2bn, implying cash capex/sales of 35%. Excluding payment of the recently awarded spectrum and the 2G license instalments, cash capex/sales would reach 29%.
• Net debt landed at EGP 17.9bn (up from EGP 13.3bn in FY 2021) due to the currency devaluation, denoting 1x net debt/annualized EBITDA.

Adel Hamed, Managing Director and Chief Executive Officer, commented:

"I’m proud of the resilience Telecom Egypt is showing. The clear-cut wins quarter after quarter, and accordingly, positive 9M 2022 results, reflect our solid stance in the turbulent operational environment.

Data demand was the main contender for the 22% YoY upscale in top line—directly through retail data growth (21% YoY) and indirectly through higher cable project and domestic wholesale revenues recorded year-to-date. Meanwhile, EBITDA reached a strong margin of 41%, supported by an improved revenue mix, growing customer base and healthy ARPU on the operational front. Our net profit reached EGP 6.2bn, making up 19% of the top line.

Despite inflationary pressures witnessed across the various cost elements in 9M 2022 (the two-time salary increase, higher interest expense and currency devaluation—which inflated capex), we maintained our FCFF position in the positive territory, amounting to EGP 0.3bn, thanks to healthy operations and Vodafone dividends. However, excluding the payment of the recently awarded spectrum and the 2G license instalments FCFF would have reached EGP 2.3bn.

We’re confident that growing USD revenue streams and capex rationalization will continue to pay off—further enhancing our cash flow stance going forward. Additionally, we are committed to exceeding client expectations by providing cutting-edge technology services of the highest caliber while advancing the nation's digitalization program. By doing so, and with the plan in place to face further market disruptions, we are confident that we will continue our growth story moving forward. This will ensure that we remain resilient and financially sound, fulfilling our responsibility to all stakeholders. As always, we will have the best interests of all of our shareholders in mind if and when we need to make any investment-related decisions.”

March 2022

FY 2021 results: Telecom Egypt tops unprecedented financial performance with a 33% hike in proposed dividends

FY 2021 key highlights

Consolidated revenue grew 16% YoY, landing at EGP 37.1bn. The growth was mainly driven by a 30% YoY increase in data revenues, constituting 67% of top line growth, and a 26% YoY increase in infrastructure revenue.

Customer base grew on all fronts with fixed voice and broadband growing 12% and 16% YoY, respectively, and mobile customers growing 28% YoY, reaching 9.4mn.

EBITDA came in at EGP 14.2bn with a strong margin of 38% on an improved revenue mix.

Operating profit grew 42% YoY thanks to a high margin revenue mix and continued cost containment efforts, despite a 19% YoY growth in D&A.

Net profit reached EGP 8.4bn, growing 74% YoY driven by strong operational performance and higher investment income from Vodafone (+52% YoY).

In-service CapEx reached EGP 10.1bn, representing 27% of total revenue, while cash CapEx reached EGP 13.6bn (37% of sales).

Net debt to EBITDA declined 0.9x, compared to 1.6x last year, while the effective interest rate declined to 5.3% vs. 5.9% in FY 2020.

Operating cash flows doubled YoY, reaching an all-time high of EGP 16bn.

Dividend distribution proposed by the BoD is EGP 1/share (+33%YoY).

Adel Hamed, Managing Director and Chief Executive Officer, commented: 

"I am very proud of our FY 2021 results that reflect Telecom Egypt’s outstanding performance across the board. Our top line grew 16% YoY, mainly attributable to a 30% YoY spike in data revenue, while EBITDA climbed 28% YoY, recording a strong margin of 38%. Our net profit has hit a record-high EGP 7.7bn, organically up 52%. Our full year results clearly demonstrate that the strategy we adopted to reach financial and operational excellence is already bearing fruit, as we continue to see our growing margins translate to strong organic free cash flows of EGP 3bn, after excluding special dividends from Vodafone Egypt of around EGP 4bn.

Our remarkable performance is credited to our unique and valuable product offerings that cater to all customer segments, our internal system upgrades, and our ability to capitalize on our distinctive infrastructure that spans both Egypt and the region. Additionally, Telecom Egypt continued to contribute strongly to national digitization projects, including the new phase of the digital transformation initiative that involves connecting nationwide governmental buildings with fiber, in addition to the first phase of Hayah Karima, which involves connecting about 1,400 villages with Fiber to the Home (FTTH) technology.

Strategically, we have resumed our efforts to deleverage and decrease our cost of debt by utilizing our higher operating cash flows and the special dividends we received from Vodafone Egypt, which was a result of the new modified shareholders’ agreement with Vodafone Egypt, which provides us with visibility on our investment and expected returns going forward.

To conclude, 2021 is evidence that Telecom Egypt is a forward-focused company committed to maximizing shareholder returns and enabling Egypt’s sustainable development strategy. We look forward to continue delivering on our strategic goals throughout 2022.

WE introduces its newest product “WE MIX” starring Mekki & Wegz's strongest duet

Telecom Egypt |WE launched its rocket-like campaign of the phenomenal product “WE MIX" in Egypt, which is the only product that merges the mobile control bundle and the fixed internet in one package. The campaign was delivered by Mekki and Wegz starring together in a booming duet video production of a song that set all social media platforms on fire just hours after its publish.

That is how WE reintroduced its products' impact on users, reflecting the company’s mission of offering a vast range of products for different needs. Moreover, WE enables the users to enjoy the full package of mobile and fixed internet services to the fullest. Thus, this reflects Telecom Egypt’s leading position in the market as the first ICT services provider by granting users all the new and creative options.

"WE MIX” gives current and new users not only the combo of the biggest mobile control bundle and fixed internet in one system, but also the opportunity to share minutes and megabytes with family and friends. In addition, the mix provides users with the option of using the megabytes of their fixed internet for mobile if their mobile bundle was fully consumed. This option is considered the first of its kind in the Egyptian telecom market.

Mr. Mohamed Abo Taleb, the Vice President of Commercial Affairs at Telecom Egypt, announced, “The introduction of this phenomenal product for the first time in Egypt ensures Telecom Egypt’s leadership and its keenness to provide the best products and constantly develop them to keep up with the ever-growing needs of users,” adding that “the launch of WE MIX was a product of a thorough study of users’ needs and requirements."

WE starts the new year 2023 with a development of its brand under the slogan "Like no other”

10 January 2023

WE announced the development of its brand and slogan at the beginning of the New Year 2023, in celebration of the reach of 12 million mobile customers with a market share exceeding 10% within 5 years of the launch of WE brand to become the first integrated operator within the Egyptian telecommunications market.

The slogan becomes "Like no other" in line with the company's plan and strategy during the next phase and its transformation from the first integrated telecommunications operator to the first digital operator to provide innovative and different digital solutions and services that contribute to enhancing the digital economy and accelerating the transition towards a digital society, commensurate with the leadership of Telecom Egypt as one of the largest ICT providers in the region.

On this occasion, WE launched its new promotional campaign that brought together many artists and stars, Hind Sabri, Amr Saad, Nadine Najim, Hoda al-Mufti, Nur al-Nabawi and Marwan Musa as an expression of addressing all segments of customers with different interests in the Egyptian society and providing them with state-of-the-art services that meet their needs and future aspirations.

To complement the development and modernization processes of the company, WE will maximize the investments that are constantly being made to reinforce networks, develop infrastructure and provide value-added services to become the Egypt's newest network.

Eng. Adel Hamid, Managing Director and Chief Executive Officer of Telecom Egypt| WE expressed his pleasure of TE’s performance in the last few years and how the number of mobile customers reached 12 million in a new accomplishment flagged by the company.

In a real translation of its strategy, WE confirms its steady steps towards transformation into a digital operator, the future model of telecommunications services in the coming years, depending on the latest networks and technologies to meet the needs of its customers.

He added that Telecom Egypt vision is based on providing digital telecommunication services to empower the Egyptian society and support the state's plans towards digital transformation by providing the best services of the highest possible quality, thereby enhancing market value.

He also stressed that the change in the company's brand is not only a change in the shape, but also a change in the content and quality of services that the company seeks to launch in the coming period with a new dimension to digital services that contribute to enriching the experience of its customers and enhance its leadership within the Egyptian market.

Mohammed AbuTaleb, Executive Vice President of Commercial Affairs, confirmed that after 5 years since the launch of the WE brand, the company was able to reach various customers and sectors with different interests under the fierce competition within the local telecommunications market, which is nearly saturated 110%.

The company succeeded in building and gaining the customers trust year after year and proved, with its customer base of up to 12 million customers, that it deserves this trust. The company's endeavor to improve its infrastructure is clearly reflected in the quality and efficiency of the company’s voice and data services.

Abu Taleb added that the change of the company’s brand from "Before any one" to "Like no other” is an interpretation of the company's strategy in the coming period, which is to provide innovative and different services and solutions to enable its customers to have a more distinctive experience of ICT solutions and services that meet their future interests and needs.

Telecom Egypt announces that the National Telecom Regulatory Authority (NTRA) has accepted its financial and technical offer to obtain an additional 5MHz of spectrum in the 1800MHz band using FDD technology. The 10-year spectrum allocation was competitively priced at USD 125mn compared with the spectrum awarded in late 2020.

The company viewed this as a strategic move to support heavier traffic from a growing customer base while cost-effectively improving service speed and quality. The additional spectrum will boost voice and data service quality, increase network coverage around the country, and support the fast-paced evolution of customer needs and aspirations. Furthermore, with fast data rates, low latency, and good coverage, the additional spectrum will also provide future business and technological advantages for all beneficiaries. WE customers will be able benefit from the enhancement almost immediately as the company is technically ready to operate the additional spectrum. Moreover, injecting new investments in the allocated spectrum and utilizing advanced technological solutions is yet another concrete milestone in Telecom Egypt's transition from a fully integrated telecom provider to become the country’s leading ICT provider.

Adel Hamed, Managing Director and Chief Executive Officer, commented:
“We are delighted that Telecom Egypt's request for more spectrum has been accepted. Together with our current spectrum packages, this additional package will enable us to continue providing competitive, highly-efficient connectivity while accommodating for the rapid expansion of our mobile customer base. We intend to leverage our licenses to deliver value that meets the aspirations of both businesses and consumers, while also providing cost efficiencies for the company and maximizing shareholder value.”

06 March 2023

• Consolidated revenue increased by 19% YoY to report EGP 44.3bn in FY 2022, backed by the 21% and 17% increase in retail and wholesale revenues, respectively, thanks to the EGP 3.2bn increase in data revenue, followed by other enterprise and cable projects revenues, each increasing EGP 0.9bn YoY.
• Customer base expanded across the board, with fixed voice and broadband growing 5% and 9% YoY, respectively, while mobile customers increased by almost 3mn subscribers backed by 1.5mn new customers from mega projects.
• EBITDA landed at EGP 17bn (+23% YoY), implying a strong margin of 39% on higher revenue mix, meeting management’s guidance and easing the inflationary pressures reflected on some cost elements.
• Operating profit grew 16% YoY despite the 25% increase in D&A. However, normalized for the one-off provision costs, it grew by 22% YoY to report EGP 10.3bn.
• Net profit increased by 9% YoY reaching EGP 9.2bn, backed by the strong operational performance. However, excluding one-offs—comprising lower income from Vodafone (mainly caused by currency devaluation), the aforementioned provision reversal and FX impact — normalized net profit would have recorded EGP 10.1bn, growing 31% YoY and implying a margin of 23%.
• In-service capex landed at EGP 12.6bn (representing 28% of revenues, +1% YoY). Cash capex reached EGP 19bn, whereas by excluding spectrum and license fees, it reaches EGP 13.7bn.
• Net debt/EBITDA recorded 1.4x vs. 0.9x in 2021; however, the Effective Interest Rate (EIR) declined to 5.5% vs. 7% in the same period, despite the inflated gross debt of +89% YoY resulting from the USD appreciation.
• Dividend distribution proposed by the BoD is EGP 0.75/share.

Adel Hamed, Managing Director and Chief Executive Officer, commented:

"Telecom Egypt has once again extended its growth momentum, delivering a strong quarter and closing 2022 on a high note. Despite the continued market challenges, our clear strategy and enhanced operational efficiency have enabled us to meet our objectives.

FY 2022 revenue increased by 19% YoY, arriving at EGP 44.3bn. Our customer base continues to expand, particularly mobile subscribers, which increased by 3 million. EBITDA increased to EGP 17.4bn, marking a robust 39% margin due to higher revenue across the board—which offset the inflationary pressures witnessed across different cost elements. Net profit increased 9% YoY reaching EGP 9.2bn, while normalized net profit would have reached EGP 10.1bn, up 31% YoY. We recorded a FCFF of EGP 3bn after excluding spectrum and license fees; nonetheless, we deemed such investments crucial as we strive to continue growing our customer base and enhancing service quality.

We look forward to continuing our growth story well into 2023. As such, we seek each and every possible opportunity to monetize our investments and strengthen our performance, while keeping a close eye on expanding our reach and rationalizing different cost elements — as witnessed through our newly signed national roaming agreement with Orange Egypt, which kicked in at the end of 2022 and is expected to drive annual savings of EGP 1bn, starting 2023. I believe that our core values of providing the most reliable and advanced ICT services, while fortifying our international presence in the connectivity space, will continue fuelling our growth momentum, benefiting all our stakeholders, and delivering a decent value to our shareholders. In that regard, I’m pleased to share that despite the global economic conditions and macro challenges, the BoD has proposed to pay out a dividend of EGP 0.75/share for FY 2022.”