Telecom Egypt has closed the first quarter (Q1) of 2025 with remarkable momentum, delivering a strong performance that reflects its strategic vision and operational resilience and solidifies its position as Egypt’s leading telecommunications provider.
“With 2025 well underway, I am pleased to report that our Q1 results affirm our strong growth trajectory. We remain optimistic about sustaining this momentum, supported by a favorable economic outlook in Egypt, where exchange rates remain stable within expected ranges, inflation is under control, and interest rates are on a downward path,” said Mohamed Nasr, Managing Director and Chief Executive Officer.
Previous Results: Telecom Egypt’s FY 2024 Results Herald Sustainable Growth
Financial Performance
In Q1 2025, total revenue rose by 42% year-over-year (YoY) to EGP 24.8 billion, driven primarily by strong momentum in the retail segment, which contributed 57% of total revenue and accounted for 56% of the YoY growth.
The customer base grew across all services, with mobile, fixed broadband, and fixed voice increasing by 10%, 8%, and 4% YoY, respectively.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 49% YoY to EGP 10.9 billion, achieving a solid margin of 44%, up from 42% the previous year.
Income from Vodafone Egypt (VFE) jumped 3.6 times YoY to EGP 3.2 billion, while normalized net profit climbed to EGP 5.2 billion, reflecting a 39% YoY increase and a 21% net profit margin.
In-service capital expenditure (CapEx) stood at EGP 2.3 billion (9% of sales), while cash CapEx reached EGP 6.8 billion (27% of sales), declining by 55% YoY, in line with the telco’s strategy to optimize spending while maintaining operational excellence and securing future growth
The net debt to EBITDA ratio (annualized) improved to 1.6x from 2.2x in Q4 2024. Free cash flow to the firm (FCFF), excluding EGP 0.2 billion spent on licenses, totaled EGP 3.8 billion, resulting in a FCFF/EBITDA ratio of 35%.
Taking into account EGP 0.7 billion in foreign exchange (FX) loss in Q1 2025 and EGP 0.2 billion FX gain in Q1 2024, normalized net profit grew 39% YoY to EGP 5.2 billion, resulting in a net profit margin of 21%. This growth was driven by strong operational performance and a 3.6x increase in income from VFE YoY, offsetting a 73% rise in interest expense.
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Business Units Overview In the retail segment, revenue increased by 40% YoY, led by a 45% growth in the home and consumer business unit following the 30% price adjustment in December 2024.
Wholesale revenue rose 44% YoY, supported by exceptional growth in the domestic and ICA business units, which expanded by 56% and 64% YoY, respectively.
“These efforts have uniquely positioned us to unlock the value of our extensive assets and capitalize on the accelerating demand for connectivity, both locally and globally. This is clearly reflected in our strong growth momentum and the continued trust of our local and international partners,” highlighted Nasr.
In a dynamic, capital-intensive industry that demands continuous investment and innovation to secure long-term growth, Telecom Egypt remains focused on optimizing its capital structure, enhancing profitability, and strengthening cash flow generation.
Guided by a clear strategic vision that aligns with sustainable development goals (SDGs) and integrates leading ESG (environmental, social, and governance) practices, and is reinforced by strong partnerships and a highly committed team, Telecom Egypt is well-positioned to deliver long-term, sustainable value to its stakeholders.
