Telecom Egypt (TE) announced, on Tuesday, its business results for the first quarter (Q1) of 2021, which ended on 31 March. The company's total consolidated revenues reached EGP 8.4bn, reflecting a growth rate of 20% compared to the same period of the previous year. This was driven by the outstanding growth in data services, which increased by 37% and contributed a 66% growth to TE's total revenues. The company showed a growth in its customer base for all services provided, with the number of landline subscribers increasing by 7%. At the same time, the number of ADSL customers increased by 22%, and mobile subscribers by 38%, compared to Q1 of 2020. Net profit after taxes reached EGP 2.1bn, an increase of 62% over the same period of the previous year, supported by strong operating performance. By neutralising the impact of non-operating elements represented in provisions, currency differential profits, deferred income taxes, and non-operating growth in profits from investments, the net profit reached EGP 1.8bn. This reflected a growth rate of 77% compared to the same period of the previous year. Operating cash flows increased by 80% on a year-on-year (y-o-y) basis, and 33% on a quarter-on-quarter (q-o-q) basis, to reach EGP 3.4bn. Capital expenditures represented 14% of the total achieved revenues, while the paid capital expenditures represented EGP 5.7bn, due to the payment of the first instalment for TE's new frequencies. TE's net debt amounted to EGP 19.8bn, achieving a net debt ratio of 1.5 times profit before interest, taxes, depreciation and amortisation, on an annual basis compared to 1.6 times by the end of 2020. Meanwhile, the company's interest rate decreased to 5.7%, compared to 7 4% in Q4 of 2020.
