Telecommunications giant, Telecom Egypt, Records a 33% Increase in Total Income, Reaching EGP 50.6 Billion
Telecom Egypt Sets Sights on Second Half of 2025 with Strategic Priorities
Telecom Egypt, the largest telecommunications operator in Egypt, is gearing up for the second half of 2025 with a focus on strategic priorities that are likely to drive growth and innovation. This follows an exceptional period of growth and operational progress in the first half of the year, as the company launched its 5G services and reported significant financial improvements.
The strategic priorities for the second half of 2025 are expected to centre around several key areas, based on Telecom Egypt's recent activities and announcements.
Expansion and Modernization of Infrastructure
Telecom Egypt is likely to continue expanding and modernizing its infrastructure, with a focus on fiber-optic networks and advanced broadband technologies to meet growing demand for high-speed internet services. This strategic move aims to maintain their leadership position in the Egyptian telecom market.
Enhancement of Network and Service Offerings
The company may prioritize further investments in 5G services, building on the momentum from the launch earlier in the year. This will enhance customer experience and support new digital innovations. They will also likely continue to improve their fixed broadband and fixed voice services, aiming for further customer growth in these segments.
Subsea Cable Projects and International Expansion
Telecom Egypt recently completed the laying of the "Coral Bridge" subsea cable connecting Egypt and Jordan. Future priorities might include expanding similar projects to enhance connectivity across the region, strengthening their position as a major player in the region's subsea cable network.
Operational Efficiency and Profitability
Maintaining disciplined operational efficiency will be crucial to sustaining strong EBITDA performance and profitability. This involves optimizing costs while driving revenue growth. The company will also focus on improving its leverage profile further, following the significant reduction in net debt/EBITDA achieved in the first half.
Strategic Partnerships and Investments
Continuing to leverage their stake in Vodafone Egypt and exploring new strategic partnerships or investments could be a priority to enhance their service offerings and market reach. This could involve collaborations aimed at expanding digital services and enhancing customer offerings.
Mohamed Nasr, Managing Director and Chief Executive Officer of Telecom Egypt, reaffirmed the company's commitment to investment and strategic priorities. He detailed the company's improved financial health, noting a significant increase in profitability. The surge in Data revenue for Telecom Egypt was a remarkable 47%, and net debt/annualized EBITDA reached 1.6x in H1 2025, down from 2.4x the previous year.
Telecom Egypt will maintain a focus on financial and operational excellence, with FCFF (Free Cash Flow to the Firm) reaching EGP 8.1 billion in H1 2025, representing 36% of EBITDA. The company will continue investing in its network infrastructure, and Mohamed Nasr also mentioned a strengthened debt structure for Telecom Egypt.
International Incoming Calls revenue also saw robust gains for Telecom Egypt, and total revenue for the company rose by 33% year-over-year to EGP 50.6 billion. Mohamed Nasr reported that Telecom Egypt's customer base expanded across all key segments.
With these strategic priorities in place, Telecom Egypt is poised to continue its exceptional growth trajectory and further enhance the customer experience in the digital era.
- Telecom Egypt, while maintaining operational efficiency and profitability, is anticipated to invest in strategic partnerships and investments, such as collaborations with Vodafone Egypt, to expand digital services and market reach, thereby enhancing customer offerings.
- In line with its expansion and modernization of infrastructure, Telecom Egypt is likely to pursue additional subsea cable projects in the region, aiming to strengthen its position as a major player in the regional subsea cable network, thereby increasing connectivity across the region.
