Telecom Egypt | WE announced its sponsorship of the Egyptian Women's Summit 2025 initiative, which aims to support women and youth in future fields of work related to science, technology, engineering, mathematics, artificial intelligence, innovation, and entrepreneurship. The initiative seeks to bridge the gap between educational outcomes and labor market needs, provide youth with training and employment opportunities, and build relationships with executive leaders and international experts.

The summit witnessed distinguished participation from Telecom Egypt professionals, who delivered a series of workshops covering topics such as fostering innovative talents in the era of artificial intelligence, the secure Internet, and artificial intelligence for good, to transfer professional experiences to future generations.

This sponsorship comes as part of Telecom Egypt's corporate social responsibility strategy, and reflects the company’s commitment to supporting youth and women’s empowerment initiatives, promoting innovation in the fields of technology, supporting entrepreneurship, developing the knowledge-based economy, and strengthening Egypt's position as a regional center of technological excellence. This initiative focuses on establishing a national ecosystem for innovation and employment, developing future skills through collaboration between the government and the private sector, enhancing women's participation in the fields of science and technology, and supporting young entrepreneurs by training approximately 6,000 male and female students from 30 Egyptian universities.

It is noteworthy that Telecom Egypt has provided many integrated initiatives aimed at building capabilities, supporting education, and promoting innovation. Among these initiatives is "She Leads" which provided specialized training to more than 825 female students in ten governorates and helped them transform their ideas into innovative projects with economic and social impact. The company also contributed to preparing highly qualified young talent by providing full scholarships in the fields of engineering and computer science to university students at institutions such as Zewail University and Egypt University of Informatics, to qualify a generation capable of leading the communications sector and driving digital transformation.

Telecom Egypt, as part of the 2Africa consortium along with Bayobab, center3, China Mobile International, Meta, Orange, Vodafone Group, and WIOCC, today announced the completion of the core 2Africa infrastructure, a landmark subsea cable system that sets a new standard for global connectivity.

The 2Africa project is the product of years of close collaboration, technical innovation, and a shared vision among the consortium partners to connect communities, drive economic growth, and enable transformative digital experiences across Africa and beyond.

2Africa is the first cable to directly connect East and West Africa in a continuous system. The cable system also links the continent to the Middle East, South Asia, and Europe. With landings in more than 33 countries and counting, 2Africa will help enable connectivity for 3 billion people—representing more than 30 percent of the world’s population. This scale is unprecedented and was only possible through the collective effort of stakeholders across the ecosystem.

The cable system delivers a step change in international bandwidth for Africa. On the West segment, from England to South Africa, 2Africa supports 21 Tbps per fiber pair with 8 fiber pairs on the trunk, totaling 168 Tbps. In the Mediterranean, shorter distances allow for more than 30 Tbps per fiber pair, and with 16 fiber pairs, the system can deliver over 180 Tbps in these segments.

2Africa lands in Egypt, on the Red Sea, at Ras Ghareb, and on the Mediterranean, at Port Said. Both landing points are connected terrestrially via two trans-Egypt routes adjacent to the Suez Canal. The crossing solution, deployed with next-generation fiber technology, offers seamless optical paths between Africa, Asia, and Europe. It is complemented by the Red Sea subsea festoon, which connects the Ras Ghareb, Zafarana, and Suez, adding an extra layer of diversity to the crossing.

This leap in capacity is expected to contribute up to USD 36.9 billion to Africa’s GDP within the first two to three years of operation, boosting job creation, entrepreneurship, and innovation hubs across the continent. 2Africa’s success is rooted in strong partnerships, with the consortium sharing a unified goal: to build an open, inclusive network that fosters competition and supports innovation. With the Pearls extension, 2Africa will span 45,000 kilometers—more than the circumference of the earth.

Taking nearly six years to complete across 50 jurisdictions and requiring constant adaptation to dynamic regulatory landscapes, the cable’s success depended on strong partnerships and close collaboration with regulators and policymakers worldwide.

2Africa delivers double the capacity of older systems. It deploys advanced SDM (Spatial Division Multiplexing) technology and undersea optical wavelength switching for flexible bandwidth management to meet the growing demands for AI, cloud, and high bandwidth applications. The system also features a 50 percent increase in cable burial depth, carefully routed to avoid seabed hazards. Over 35 offshore vessels and extensive local operations were mobilized, with specialist equipment to ensure safe and resilient installation across the different jurisdictions.

The completion of 2Africa demonstrates the consortium’s shared commitment to advancing connectivity and driving sustainable digital and economic growth. This investment in open, scalable infrastructure will continue to strengthen global network resilience and extend the benefits of digital transformation to billions of people worldwide.

For Telecom Egypt, the project further strengthens its position as the region’s central connectivity hub and reinforces its strategic role as the primary gateway linking Africa to the rest of the world. The company’s participation in the consortium aligns with its long-term strategy to expand international infrastructure capacity, monetize its assets, and enhance Egypt’s leadership in global data transit.

Tamer El Mahdi, Managing Director and Chief Executive Officer of Telecom Egypt, commented: “The completion of the core infrastructure of the 2Africa cable project marks another milestone in Telecom Egypt’s ongoing journey to extend its international infrastructure and solidify our role as a central hub for global data traffic. Driven by our commitment to delivering unmatched, state-of-the-art solutions to all our partners and customers, we are thrilled to be part of such a transformative project, unlocking a new era of digital connectivity in Africa and beyond.”

Telecom Egypt, as part of the 2Africa consortium along with Bayobab, center3, China Mobile International, Meta, Orange, Vodafone Group, and WIOCC, today announced the completion of the core 2Africa infrastructure, a landmark subsea cable system that sets a new standard for global connectivity.

The 2Africa project is the product of years of close collaboration, technical innovation, and a shared vision among the consortium partners to connect communities, drive economic growth, and enable transformative digital experiences across Africa and beyond.

2Africa is the first cable to directly connect East and West Africa in a continuous system. The cable system also links the continent to the Middle East, South Asia, and Europe. With landings in more than 33 countries and counting, 2Africa will help enable connectivity for 3 billion people—representing more than 30 percent of the world’s population. This scale is unprecedented and was only possible through the collective effort of stakeholders across the ecosystem.

The cable system delivers a step change in international bandwidth for Africa. On the West segment, from England to South Africa, 2Africa supports 21 Tbps per fiber pair with 8 fiber pairs on the trunk, totaling 168 Tbps. In the Mediterranean, shorter distances allow for more than 30 Tbps per fiber pair, and with 16 fiber pairs, the system can deliver over 180 Tbps in these segments.

2Africa lands in Egypt, on the Red Sea, at Ras Ghareb, and on the Mediterranean, at Port Said. Both landing points are connected terrestrially via two trans-Egypt routes adjacent to the Suez Canal. The crossing solution, deployed with next-generation fiber technology, offers seamless optical paths between Africa, Asia, and Europe. It is complemented by the Red Sea subsea festoon, which connects the Ras Ghareb, Zafarana, and Suez, adding an extra layer of diversity to the crossing.

This leap in capacity is expected to contribute up to USD 36.9 billion to Africa’s GDP within the first two to three years of operation, boosting job creation, entrepreneurship, and innovation hubs across the continent. 2Africa’s success is rooted in strong partnerships, with the consortium sharing a unified goal: to build an open, inclusive network that fosters competition and supports innovation. With the Pearls extension, 2Africa will span 45,000 kilometers—more than the circumference of the earth.

Taking nearly six years to complete across 50 jurisdictions and requiring constant adaptation to dynamic regulatory landscapes, the cable’s success depended on strong partnerships and close collaboration with regulators and policymakers worldwide.

2Africa delivers double the capacity of older systems. It deploys advanced SDM (Spatial Division Multiplexing) technology and undersea optical wavelength switching for flexible bandwidth management to meet the growing demands for AI, cloud, and high bandwidth applications. The system also features a 50 percent increase in cable burial depth, carefully routed to avoid seabed hazards. Over 35 offshore vessels and extensive local operations were mobilized, with specialist equipment to ensure safe and resilient installation across the different jurisdictions.

The completion of 2Africa demonstrates the consortium’s shared commitment to advancing connectivity and driving sustainable digital and economic growth. This investment in open, scalable infrastructure will continue to strengthen global network resilience and extend the benefits of digital transformation to billions of people worldwide.

For Telecom Egypt, the project further strengthens its position as the region’s central connectivity hub and reinforces its strategic role as the primary gateway linking Africa to the rest of the world. The company’s participation in the consortium aligns with its long-term strategy to expand international infrastructure capacity, monetize its assets, and enhance Egypt’s leadership in global data transit.

Tamer El Mahdi, Managing Director and Chief Executive Officer of Telecom Egypt, commented: “The completion of the core infrastructure of the 2Africa cable project marks another milestone in Telecom Egypt’s ongoing journey to extend its international infrastructure and solidify our role as a central hub for global data traffic. Driven by our commitment to delivering unmatched, state-of-the-art solutions to all our partners and customers, we are thrilled to be part of such a transformative project, unlocking a new era of digital connectivity in Africa and beyond.”

Telecom Egypt |WE is participating strongly this year in the 29th edition of Cairo ICT, the leading Middle East and Africa technology exhibition and conference. The event, one of the most prominent in the region’s technology industry, is held under the patronage of the Ministry of Communications and Information Technology, and will run from 16 to 19 November at the Egypt International Exhibition Center in New Cairo. The exhibition features the participation of ministries, government authorities, local and international companies, as well as top leaders and pioneers of technology from Egypt, the region, and around the world.

In its pavilion, the company showcases its efforts in developing the infrastructure and providing innovative technological solutions and services that meet the evolving needs of its customers.

During the exhibition, the company unveiled its ambitious strategic plan to expand the deployment of Fiber-to-the-Home (FTTH) technology, gradually reaching all customers. The plan includes migrating millions of customers to fiber-optic services over the next few years, with the aim of achieving a paradigm shift in the quality of fixed internet services and increasing connection speeds, ensuring that customers receive the highest levels of service quality.

This expansion comes in response to the growing demand for ultra-high speeds and future technologies such as artificial intelligence and the Internet of Things, and aligns with the state's objectives to realize a comprehensive digital transformation.

Eng. Tamer El-Mahdy, Managing Director and Chief Executive Officer of Telecom Egypt, said: "This plan aims to deliver a transformative leap in the quality of internet services provided to customers. FTTH technology offers download and upload speeds that far exceed traditional technologies, while ensuring service stability even during peak hours and reducing faults caused by weather conditions or cable erosion, thereby enhancing the efficiency and continuity of connectivity."

He added: "This plan covers the company’s customers across individuals, enterprises, real estate developers, and commercial projects, enabling the provision of integrated telecom services that support the digital economy and keep pace with the requirements of new urban development

In this context, Telecom Egypt highlighted the provision of fixed internet speeds of up to 500 Mbps for the first time in the Egyptian market, made possible through the company’s substantial and ongoing investments in infrastructure development and fiber-optic networks. This achievement reflects the company’s capability to deliver exceptional speeds that enable users to fully benefit from modern applications and support the state’s plans for digital transformation and the development of a knowledge-based economy.

The company also showcased in its pavilion the “Ma'ak” service, which is specifically designed for the deaf and mute community. The service enables users to communicate via video calls with sign-language interpreters from the customer care team around the clock, ensuring an accessible and inclusive support experience that provides seamless access to services and rapid, efficient resolution of technical issues.

The Telecom Egypt pavilion further highlighted the advanced capabilities of its data centers, the international standards they adopt, and the range of digital services dedicated to enterprises and government entities to support digital transformation and enhance the services provided to citizens.

In addition, the pavilion featured an overview of the WE Innovate initiative, which aims to train and develop the skills of young people in the fields of cybersecurity and modern technologies, enabling them to develop innovative solutions to counter cyber threats and analyze data using artificial intelligence - thereby strengthening the protection of the digital infrastructure across vital sectors.

On the sidelines of the 2025 Population, Health & Human Development Conference (PHDC 2025)

Telecom Egypt announced the signing of three Memorandums of Understanding (MoUs) with key partners in the healthcare sector to enhance the service portfolio of its digital health platform, WE Health Cloud. The agreements aim to introduce advanced AI-powered Clinical Decision Support Systems (AI-CDSS), comprehensive hospital automation solutions, and telemedicine services, in addition to new tools that elevate patient experience, reinforcing Telecom Egypt’s leadership in driving the digital transformation of the healthcare sector in Egypt. The MoUs were signed on the sidelines of the Population, Health & Human Development Conference PHDC 2025, which kicked off on November 12 under the sponsorship of Telecom Egypt.

WE Health Cloud operates through locally secured data centers and has been developed in collaboration with global healthcare technology leaders. The platform unifies the healthcare experience across hospitals, clinics, laboratories, and diagnostic centers, offering a fully integrated ecosystem that includes, Electronic Medical Records (EMR/EHR), Hospital & Clinic Information Management Systems (HIMS), Revenue Cycle Management (RCM), Pharmacy, radiology, and laboratory management, Telemedicine services, Patient portal, Advanced analytical dashboards for administrators, and Full Arabic user interface and compliance with all local standards

The new partnerships included signing an MoU between Telecom Egypt and Vezeeta, the leading digital healthcare platform in the Middle East and Africa, to explore collaboration opportunities with WE Health Cloud. The partnership aims to jointly develop technological and digital solutions that enhance healthcare services for providers in Egypt, improving data integration and enabling easier access to medical services;

Telecom Egypt also signed an MoU with GuidelineX, a global AI-powered clinical decision support platform, and its local representative DTS, to integrate AI-driven clinical decision support tools and medical analytics into WE Health Cloud. This integration will support physicians in making accurate, guideline-based decisions using real-time clinical data analysis, improving diagnostic accuracy and reducing medical errors. The collaboration aims to strengthen Egypt’s digital health ecosystem across all hospitals.

A third MoU was signed with zMed and DTS to provide hospital automation solutions and remote intensive care (Tele-ICU) services. The partnership introduces intelligent systems for continuous critical-care patient monitoring and real-time AI analysis of vital signs, enabling early prediction of patient deterioration and reducing mortality rates

Rami Kato, Vice President of Customer Service – Telecom Egypt, said, “We believe that digital transformation in healthcare is a fundamental pillar of Egypt’s Vision 2030. Through these strategic partnerships, we aim to enrich our digital health solutions by integrating world-class technologies. WE Health Cloud is designed to elevate the national healthcare ecosystem by providing smart, secure, and comprehensive solutions that improve the quality of medical services, enhance patient safety, and build an interconnected digital healthcare infrastructure, positioning Telecom Egypt as a strategic partner in shaping Egypt’s digital health future.”

Dr. Ola Aladdin, Chief Operating Officer – Vezeeta commented, “We are delighted to sign this MoU with Telecom Egypt to explore collaboration with WE Health Cloud, as a strategic step that accelerates our vision to digitize the patient healthcare journey. Integrating Vezeeta’s technology with a secure and advanced digital infrastructure will help unify the patient journey, connect providers and supply chains, and ensure better service quality, patient safety, and wider access to smart healthcare nationwide. We believe this partnership will support Egypt’s Vision 2030 by implementing the highest global standards in data protection and service quality.”

Janet Shaw, Head of Product Development – GuidelineX, said, “Partnering with a national leader like Telecom Egypt enables us to deliver our advanced solutions in Egypt with world-class efficiency and reliability, powered by a scalable and secure cloud infrastructure. Integrating GuidelineX’s clinical tools and AI capabilities with WE Health Cloud will accelerate clinical decision-making, standardize care pathways, and enhance the quality of care across a fully connected health ecosystem. We are committed to delivering patient-centric digital experiences that improve outcomes and reduce variability in clinical practice.”

Eng. Mohamed Dessouky, CEO – DTS, stated, “We are honored to represent zMed and GuidelineX in Egypt and to collaborate with Telecom Egypt. Together, we aim to bring cutting-edge AI and remote critical-care technologies to healthcare institutions across Egypt. Leveraging WE Health Cloud and Telecom Egypt’s secure infrastructure, we will accelerate the deployment of innovative healthcare solutions while maintaining the highest standards of data protection and compliance.”

Jayakanth S. Kesan, CEO & Managing Director – zMed, noted, “We are proud to partner with Telecom Egypt to introduce Tele-ICU and Critical Care Automation technologies that enhance the quality of critical-care services in Egyptian hospitals. Through seamless integration with WE Health Cloud and secure infrastructure, we provide real-time patient monitoring, unified dashboards combining device, lab, and imaging data, and AI-powered predictive analytics that support faster, more accurate clinical decisions, ultimately reducing mortality rates.”

9M 2025 Key Highlights

Total revenue up 34% YoY to EGP 78.1bn, led by Data (EGP 34.0bn), International Incoming Calls (EGP 10.2bn), and Domestic Infrastructure Services (EGP 7.8bn), driving 54%, 15%, and 8% of revenue growth, respectively.

Customer base increased YoY across Fixed Voice, Fixed Broadband, and Mobile by 7%, 8%, and 9%, respectively.

EBITDA rose 48% YoY to EGP 34.5bn, with a robust margin of 44%.

Net profit increased 96% YoY to EGP17.0bn, translating to a 22% margin in 9M 2025 vs.15% last year.

In-service CapEx reported EGP 12.2bn (16% of sales), while Cash CapEx reported EGP 20.9bn (declining 30% YoY).

Net debt/EBITDA (annualized) improved to 1.5x compared to 2.3x in 9M 2024.

FCFF amounted to EGP 12.1bn, implying a FCFF/EBITDA ratio of 35%.

Tamer El Mahdi, Managing Director and CEO, commented: “As I take on the role of CEO, I am proud to see Telecom Egypt continuing its upward trajectory. The company achieved a 34% YoY increase in total revenue to EGP 78.1 billion, reflecting strong performance in Data, International Incoming Calls, and Domestic Infrastructure Services Revenue, adding 54%, 15%, and 8% to total growth, respectively, supported by a stronger revenue mix and improved pricing across all segments. Our growing customer base highlights both the relevance of our offerings and the trust we have earned.

EBITDA increased 48% YoY to EGP 34.5 billion, driven by solid revenue growth and operational efficiency, resulting in a solid margin of 44%. Net profit almost doubled YoY to EGP 17.0 billion, reflecting resilient operations and disciplined financial management. Stable net finance costs helped ease bottom-line pressure and preserve strong profitability despite regional headwinds. The period also saw enhanced cash flow and balance sheet metrics, with FCFF reaching EGP 12.1 billion (35% of EBITDA) and net debt-to-annualized EBITDA improving to 1.5x from 2.3x a year earlier.

Looking ahead, I remain deeply committed to building on Telecom Egypt’s legacy of success and leadership. My focus will be on fostering an agile, innovation-driven organization that sustains growth and delivers long-term value for our shareholders. Together with our talented team, we will continue advancing our network and services to meet the evolving needs of our customers. With the trust of our Board, the dedication of our employees, and the loyalty of our customers, I am confident in our ability to strengthen Telecom Egypt’s position locally and regionally while contributing to the growth of Egypt’s digital economy.”

Telecom Egypt, the total telecom operator in Egypt and one of the largest subsea cable operators in the region, announced the establishment of a new Point of Presence (PoP) at the Aqaba Digital Hub (ADH) in Jordan, in a move towards a more connected and resilient future. This strategic expansion not only extends Telecom Egypt’s global network into ADH, which is the largest carrier-neutral Tier III data center in Jordan, and one of the largest in the region, but also reinforces its commitment to fostering meaningful partnerships that drive digital transformation. As the world increasingly demands high-bandwidth solutions, this new PoP will serve as a vital interconnection hub, enabling seamless data exchange and facilitating the efficient flow of regional traffic. The collaboration with ADH allows Telecom Egypt to enhance connectivity across the Middle East, providing businesses and hyperscalers with the reliable, high-capacity infrastructure they need to thrive in today’s digital economy.p>

This announcement follows the successful launch of the Coral Bridge subsea cable, an express petabit, 15-kilometer link between Egypt and Jordan, developed in partnership with NaiTel, the telecom arm of ADH. This innovative cable connects Telecom Egypt’s Taba landing point in Sinai, Egypt, to ADH’s open-access facility in Aqaba, establishing a robust framework for future growth and collaboration. The Coral Bridge system aligns perfectly with the new PoP by providing a robust foundation for onward connectivity. Together, these developments position Telecom Egypt and ADH as pivotal players in addressing the region’s connectivity challenges, supporting everything from cloud services and AI-driven applications to international data transit.

Telecom Egypt is committed to investing in its international infrastructure, which encompasses multiple subsea cable systems and landing points, to meet the ever-evolving demands of global digital traffic. By partnering with leading industry players, the company continues to achieve impactful results, driven by the belief that collaboration is the key to a future where connectivity is limitless.

Mohamed Nasr, Managing Director and Chief Executive Officer of Telecom Egypt, commented: “This dual initiative, our PoP at Aqaba Digital Hub and the activation of Coral Bridge, represents a transformative step in strengthening the digital backbone of the Middle East. In an era where ultra-high bandwidth demands are soaring, we are proud to expand our global footprint and create diverse routes that ensure resilience and seamless connectivity. Coral Bridge and the new node not only bridge Egypt and Jordan but also unlock new pathways for traffic aggregation, empowering collaboration and connectivity across continents. Telecom Egypt remains dedicated to driving innovation and reliability in the telecom ecosystem.”

 

Eyad Abu Khorma, Founder and Chief Executive Officer of Aqaba Digital Hub, commented: “Telecom Egypt’s new PoP at Aqaba Digital Hub, together with the Coral Bridge subsea cable, jointly developed between Telecom Egypt and ADH’s Telecom Arm, NaiTel, marks transformative steps for the region. By combining Egypt’s global subsea reach with Aqaba’s neutral landing station and Tier III data center, we are building resilient routes and opening digital gateways that strengthen connectivity across Jordan, the Middle East, and beyond.”

 

Telecom Egypt today announced that its Board of Directors, in its meeting held on 3 September 2025, has granted its preliminary approval of the binding offer submitted by Helios Investments to acquire a stake ranging from 75% to 80% in a subsidiary that will own the Regional Data Hub (RDH). The subsidiary owned by the two parties will engage in the business of data center development in Egypt, following the restructuring of said assets in a subsidiary, in accordance with the relevant procedures to be followed in that respect. Upon completion, Helios Investments' share shall range from approximately 75% to 80% stake in the subsidiary, while Telecom Egypt will retain approximately a 20% to 25% stake. The Board further approved signing the term sheets relating to the terms and conditions of the transaction and approved the appointment of an independent financial advisor, registered with the Financial Regulatory Authority, to determine the fair value of RDH

The binding offer submitted by Helios Investments comprises an aggregate valuation of 100% of RDH on a debt-free, cash-free basis of USD 230 million and could reach up to USD 260 million, subject to the satisfaction of certain pre-agreed KPIs, as will be outlined in the definitive agreements.

Completion of the transaction will be subject to the agreement on the terms and conditions of the final definitive agreements and its execution; the completion of the restructuring of the RDH within a subsidiary of Telecom Egypt; the agreement on the terms and conditions of ancillary transaction documentation; the satisfaction of several conditions precedents, including but not limited to, the completion of the fair value report to be prepared by the appointed independent financial advisor, the corporate approvals of the Company, and the satisfaction of all the requirements of Article 43 (bis) of the Listing and Delisting Rules of the Egyptian Exchange, and the receipt of all necessary approvals from the relevant regulatory authorities.

EFG Hermes is acting as the sole M&A financial advisor on the transaction. ADSERO-Ragy Soliman & Partners and A&O Shearman are acting as the legal advisors for Telecom Egypt.

NaiTel, a licensed telecommunications service provider in Jordan and the telecom arm of Aqaba Digital Hub (ADH), and Telecom Egypt, the total telecom operator in Egypt and one of largest subsea cable operators in the region, announce the completion of the laying of the express subsea cable “Coral Bridge” connecting Egypt and Jordan. Coral Bridge subsea system has successfully landed in Taba, Egypt, then it was laid across the Gulf of Aqaba until it finally successfully landed in Aqaba, Jordan. Coral Bridge is the first direct subsea cable between the two countries in over 25 years, providing an express high-fiber-count digital link across the Gulf of Aqaba, marking a major milestone in the region’s digital infrastructure development.

On the Egyptian side, Coral Bridge is the first telecommunication subsea system to land at Telecom Egypt’s new cable landing point in Taba—part of the company’s broader, recently established international digital infrastructure in Sinai Peninsula. In Jordan, the cable landed at ADH’s Tier III carrier-neutral facility in Aqaba, supporting redundancy and recovery strategies for businesses, including enterprises and hyperscalers hosted in the data center.

By leveraging on both countries’ strategic locations and Telecom Egypt’s extensive subsea ecosystem, Coral Bridge provides seamless onward connectivity across Asia, Africa, and Europe benefiting local, regional, and international businesses. The 15-kilometer cable, equipped with 48 fiber pairs, is designed for transporting over 1 Petabit of data traffic, supporting the growing demand for data intensive digital applications such as cloud computing and artificial intelligence. In addition, its short length significantly reduces latency and lowers data costs

Coral Bridge is engineered to the highest technical and environmental standards. The cable was developed with sustainability in mind, balancing capacity and performance with environmental responsibility. This collaboration between ADH/NaiTel and Telecom Egypt stands as a strong example of how cross-border partnerships can unlock long-term value and pave the way for future infrastructure initiatives across the Middle East and beyond.

Eyad Abu Khorma, Founder and CEO of Aqaba Digital Hub (ADH), commented: “Coral Bridge is more than just a cable—it’s a strategic asset for the entire region. It lands at ADH’s carrier-neutral facility in Jordan, enhances regional market access, featuring one of MENA’s largest data centers. By enabling a direct digital bridge between Aqaba-Jordan and Sinai Peninsula-Egypt, we are strengthening regional resilience and opening new opportunities for high-performance infrastructure and sovereign connectivity.

Mohamed Nasr, Managing Director and Chief Executive Officer at Telecom Egypt, commented: "The strategic proximity between Taba and Aqaba creates a vital opportunity to establish a robust corridor for data connectivity across the Middle East and Europe. Through our collaboration with NaiTel, leveraging their carrier-neutral ecosystem in Aqaba via the Aqaba Digital Hub, the Coral Bridge subsea cable system will aggregate substantial regional traffic and channel it through Egypt’s diverse terrestrial routes to the Mediterranean Sea. This critical infrastructure is key to meeting the region’s growing data demands, supporting data center expansion, and enhancing the resilience of subsea cable networks in the region."

H1 2025 Key Highlights

Total revenue increased by 33% YoY, reaching EGP 50.6bn, driven by a 47% surge in Data revenue, as well as significant gains in International Incoming Calls, up 50% YoY.

Customer base increased YoY across Mobile, Fixed Broadband, and Fixed Voice by 12%, 8%, and 6%, respectively.

EBITDA increased by 43% YoY, reaching EGP 22.1bn, with a margin of 44%.

Normalized net profit rose to EGP 10.3bn (adjusted for FX gain/loss), marking a 50% YoY increment and a 20% net profit margin vs 18% in H1 2024.

In-service CapEx reported EGP 4.8bn (10% of sales), while Cash CapEx reported EGP 14.4bn (declining 47% YoY).

Net debt/EBITDA (annualized) improved to 1.6x compared to 2.4x in H1 2024.

FCFF amounted to EGP 8.1bn, implying a FCFF/EBITDA ratio of 36%.

Mohamed Nasr, Managing Director and Chief Executive Officer, commented: “I am proud to report that Telecom Egypt has delivered another period of exceptional growth and operational progress. Total revenue rose 33% YoY to EGP 50.6 billion, driven by a remarkable 47% surge in Data revenue and robust gains in International Incoming Calls revenue. Our customer base continued to expand across all key segments, reflecting the strength of our market proposition and the trust we have built with our customers. The launch of our 5G services this quarter is further enhancing the customer experience and enabling a new era of digital innovation, fostering growth, and delivering long-term value for our shareholders.

also showed improved cash flow and debt structure KPIs. FCFF reached EGP 8.1 billion, representing 36% of EBITDA in H1 2025. Additionally, net debt/annualized EBITDA reached 1.6x from 2.4x last year.

Looking ahead, we will continue investing in our robust network infrastructure while maintaining a focus on financial and operational excellence. Our priorities remain to strengthen our core business, drive sustainable profitability, and create long-term value for our shareholders. I am confident that our talented team and resilient business model will enable us to navigate future challenges and seize new opportunities in the rapidly evolving digital ecosystem.”

Telecom Egypt, the total telecom operator in Egypt and one of the largest subsea cables operators in the region, along with SubCom, the global subsea data system supplier, announced the successful completion of the two landings of the Southeast Asia-Middle East-Western Europe 6 (SEA-ME-WE-6) subsea cable system in Egypt: one in Port Said on the Mediterranean coast, and the other in Ras Ghareb on the Red Sea.

Telecom Egypt facilitated the connection between the two coastal landing points by ensuring diverse and resilient terrestrial crossing routes were in place. With this, the SEA-ME-WE-6 subsea cable has completed its landing activities in Egypt. This milestone marks a significant step in the ongoing expansion of the cable system, which is expected to further strengthen connectivity across the region once it becomes operational.

SEA-ME-WE-6 is the sixth edition of the SEA-ME-WE cable system family. The system connects Singapore (Tuas) to France (Marseille), crossing Egypt’s territory terrestrially. SubCom serves as the contractor responsible for building the subsea cable system.

Upon completion, the SEA-ME-WE-6 cable system will establish a strategic connection between Africa, Asia, and Europe through its 17 landing points, significantly enhancing global network infrastructure. Spanning a distance of 21,700 km, the system’s consortium comprises 16 major subsea cable providers, including Telecom Egypt, alongside BEYON B.S.C (Bahrain), Bangladesh Submarine Cables PLC, Bharti Airtel Ltd. (India), China United Network Communications Group Company Limited, Dhiraagu (Maldives), Djibouti Telecom, Microsoft (United States), Mobily (Saudi Arabia), Orange (France), PCCW Global, Singtel (Singapore), Sri Lanka Telecom, Telekom Malaysia, Telin (Indonesia), and Trans World Associates (Pakistan).

Mohamed Nasr, Managing Director and Chief Executive Officer of Telecom Egypt, commented:

“We are thrilled to announce the successful landings of the SEA-ME-WE-6 cable system in Port Said and Ras Ghareb, marking another significant milestone in our journey to expand Telecom Egypt’s global reach and strengthen our subsea infrastructure. These two landings enable the connection between the Red Sea and Mediterranean segments of the cable via two diversified, unique trans-Egypt terrestrial crossing routes.

Over the years, the Eurasia route between Southeast Asia and Europe has proven its importance and effectiveness in carrying critical telecommunication traffic. Thus, we keep developing new routes to connect Singapore and Egypt, adding layers of diversity, enhanced marine paths and much-needed capacity. These strategic landings underscore our commitment to enabling countries across the region and beyond to realize their digital ambitions by investing in building a robust, resilient, and future-ready network to serve the global subsea community."

David Coughlan, President and CEO of SubCom, commented: “Our congratulations to Telecom Egypt and its consortium partners on the landings of SEA-ME-WE-6 in Port Said and Ras Ghareb, which are another major step towards the complete deployment of this expansive subsea cable system. From engineering to route design, and manufacturing to installation, SubCom has played a vital role in making SEA-ME-WE-6 a reality for its operators and their customers. Our team looks forward to the next set of milestones associated with this impressive project.”

Telecom Egypt| WE announced the donation of Egypt’s first specialized neonatal cardiac surgery unit for infants under 45 days old to Al Nas Hospital for the free treatment of heart and digestive diseases. A delegation from Telecom Egypt, including Lobna Helal, Chairwoman of the Board, Eng. Mohamed Nasr, Managing Director and CEO, along with several board members and executives, inaugurated the new unit, where they were received by Mr. Ayman Abbas, Treasurer of Al-Joud Foundation.

The newly established unit has been specifically designed to treat newborns suffering from congenital heart defects, prioritizing critical cases that may lose their chance of survival or treatment without immediate surgical intervention. The unit comprises 12 intensive care rooms and a major operating room, enabling the hospital to perform two major cardiac surgeries per day. The proximity of the ICU rooms to the operating room helps reduce the risk of post-operative infections, shortens the duration of intensive care stays, and increases the hospital’s capacity to admit and treat a larger number of infants.

This initiative comes within the framework of Telecom Egypt |WE’s corporate social responsibility strategy, in which children’s health represents a central pillar. It also reflects the company’s commitment to supporting Egypt's Vision 2030, which aims to improve the quality of healthcare services, saving the lives of thousands of patients, alleviating the suffering of underprivileged families, and performing urgent and critical surgeries with the highest standards of quality and in the shortest possible time — the core purpose behind establishing the unit.

Eng. Mohamed Nasr, Managing Director and CEO of Telecom Egypt, stated: "We take great pride in our societal role, which has given us the opportunity today to help ease the suffering of our children with heart problems and offer them new hope for life. We are pleased with our ongoing collaboration with Al Nas Hospital, which aligns with our commitment to supporting children’s health and securing a better future for them."

For his part, Mr. Ayman Abbas expressed his sincere appreciation and gratitude to Telecom Egypt|WE for its continuous support to Al Nas Hospital, emphasizing the importance of this partnership and its contribution to the hospital's mission of delivering exceptional medical services to a large number of patients from various governorates. Abbas stated: “Al Nas Hospital represents a unique global model in the fields of cardiac surgery, gastroenterology, and diabetes care, distinguished by the scientific and technological advancements integrated across its medical departments."

It is worth noting that Telecom Egypt has launched several initiatives in support of Al Nas Hospital, including funding urgent surgical procedures for newborn infants, in addition to providing the hospital with telecommunications and internet services that enhance operational efficiency and facilitate seamless information exchange among medical teams.

In a landmark move to advance global connectivity, a consortium of four powerful subsea cable operators, namely PCCW Global, Sparkle, Telecom Egypt, and Zain Omantel International (ZOI), has signed a Memorandum of Understanding (MoU) to collaborate on the construction of the Asia-Africa-Europe-2 (AAE-2) subsea cable system. The project aims to establish a robust next-generation subsea digital link connecting Hong Kong and Singapore to Italy, traversing secure and high-capacity terrestrial corridors across Thailand, the Arabian Peninsula, and Egypt. It is planned to strategically deliver unprecedented capacity and foster seamless, reliable connectivity across the three continents.

AAE-2 will also feature strategic extensions to additional key destinations across its route, further enhancing intercontinental connectivity and supporting the growing demands of cloud services, content delivery, and digital transformation initiatives across the regions.

This ambitious initiative is designed to revolutionize global connectivity by delivering a geographically diverse, resilient, and high-performance route for international traffic. By integrating both subsea and terrestrial infrastructure, AAE-2 will create a future-proof data highway between Asia, Africa, and Europe.

Building on the legacy of the AAE-1 cable, AAE-2 The project is spearheaded by industry leaders PCCW Global, Sparkle, Telecom Egypt, and ZOI, combining expertise and resources to deliver a world-class infrastructure. This groundbreaking project marks a vital step in addressing the increasing demand for robust internet infrastructure, facilitating faster data transfer and improved connectivity across multiple regions. The consortium is dedicated to ensuring the successful delivery of this transformative infrastructure project, which will play a crucial role in shaping the future of global connectivity.will incorporate the most advanced technological innovations, offering unprecedented bandwidth capacity to serve the tremendous traffic needs and empowering communities and businesses across Asia, Africa, and Europe

The project is spearheaded by industry leaders PCCW Global, Sparkle, Telecom Egypt, and ZOI, combining expertise and resources to deliver a world-class infrastructure. This groundbreaking project marks a vital step in addressing the increasing demand for robust internet infrastructure, facilitating faster data transfer and improved connectivity across multiple regions. The consortium is dedicated to ensuring the successful delivery of this transformative infrastructure project, which will play a crucial role in shaping the future of global connectivity.

Mohamed Nasr, Managing Director and Chief Executive Officer of Telecom Egypt, commented: "Over the years, we have made major investments and established partnerships to develop our cutting-edge subsea cable infrastructure, which we are witnessing today. The construction of the AAE-2 cable system is a continuation of our success stories as a global data connectivity provider and is another testament to our commitment to driving digital connections through major collaborations. AAE-2 will also benefit from accessing and cross-connecting with the other subsea cables using our WeConnect ecosystem. We are thrilled to be embarking with PCCW Global, Sparkle, and ZOI on this transformative project that will reshape the future of digital infrastructure."

Frederick Chui, Chief Executive Officer of PCCW Global, commented: "PCCW Global is proud to contribute to the AAE-2 initiative, building on our legacy of supporting vital global infrastructure. Following our instrumental role in the success of the AAE-1 system, we are pleased to bring our expertise to AAE-2, an advanced, high-capacity, and geographically diverse subsea cable system connecting Asia and Europe. This next-generation network underscores our continued commitment to delivering resilient, secure, and scalable connectivity for key markets such as Hong Kong, empowering the digital growth of tomorrow.”

Enrico Bagnasco, Chief Executive Officer of Sparkle, commented: "The AAE-2 cable system is an innovative project perfectly in line with Sparkle’s long-term strategy to strengthen the Asia-Africa-Europe corridor by enhancing route diversity and ensuring the highest levels of network resilience. In recent years, we have invested in new submarine systems and established advanced landing hubs along this strategic route, reinforcing our commitment to reliable global connectivity. Among the key initiatives, the Blue & Raman submarine cable systems- linking Italy to India through an innovative path - together with the strengthening of the Sicily Hub in Palermo and the hub in Chania, as well as the creation of a brand-new scalable landing platform in Genoa. With AAE-2, we are taking a further step forward, contributing to the creation of a distinctive infrastructure that combines terrestrial and subsea solutions to deliver secure, high-capacity, and low-latency connectivity in support of the digital transformation of businesses and communities worldwide."

Sohail Qadir, Chief Executive Officer of ZOI, commented: "This collaboration marks a defining milestone for ZOI and the region we proudly serve. As the international gateway for the Middle East, we are uniquely positioned at the crossroads of Asia, Africa, and Europe, making us a strategic enabler of next-generation connectivity. AAE-2 reflects our long-term vision to connect continents and digital ecosystems through resilient and state-of-the-art infrastructure. Our cooperation brings together advanced infrastructure, diverse terrestrial routes, and AI-ready capacity. AAE-2 will strengthen global traffic flows, empower emerging markets, and unlock new avenues for economic growth across the region and beyond.”

Telecom Egypt | WE, the largest telecommunications operator in Egypt, announced today the official launch of 5G services in the country. This milestone reflects the company’s commitment to providing customers with high-quality communications services and delivering the latest technologies that meet their evolving needs amid the ongoing digital transformation in Egypt and worldwide.

The 5G technology introduced today delivers ultra-high internet speeds with extremely low latency, enabling customers to use advanced applications such as artificial intelligence, the Internet of Things, electronic gaming, and various smart solutions. It also provides more stable and efficient connectivity, particularly in high-density areas, contributing to the development of vital sectors including education, healthcare, industry, and smart transportation, and supporting the state’s efforts to build an integrated digital society.

Telecom Egypt|WE was the first operator to obtain a license to provide 5G services in Egypt, driven by its belief that this technology represents a cornerstone for the future of digital transformation and will revolutionize people's lives and communications, while also contributing to the development of business performance.

Eng. Mohamed Nasr, Managing Director and CEO of Telecom Egypt, said: “We are proud of this historic moment as we witness the launch of 5G services in Egypt, which marks the beginning of a technological revolution that will reshape the way we interact with the digital world.” He added: “We take pride in being the first to obtain a 5G license, placing us at the forefront of this transformation. We remain committed to delivering services that exceed our customers’ expectations and to contributing to the development of a strong digital economy that enhances Egypt’s position on the global map.”

Telecom Egypt|WE announced providing Ahl Masr Burn Hospital with the first therapeutic laser device specialized in treating burn patients in Egypt, the Middle East, and Africa—the ULTRApulse® Alpha CO2. This support comes within the framework of Telecom Egypt's corporate social responsibility strategy, which places special emphasis on children's health, and as an extension of the continuous cooperation with Ahl Masr Foundation for more than ten years, during which the company has provided all forms of material and technological support. Telecom Egypt also emphasized its commitment to cooperating with major institutions to provide the latest advanced medical equipment to ensure comprehensive care for burn patients, guaranteeing them the best health outcomes and the highest levels of comfort and support.

This announcement followed a visit today by a delegation from Telecom Egypt|WE to the hospital’s headquarters in New Cairo. The delegation included Lobna Helal, chairperson of Telecom Egypt, Eng. Mohamed Nasr, Managing Director and CEO of the company, and several board and executive members. The visit aimed to learn about the latest advanced treatment services provided by the hospital in the field of burn care, where they were briefed on the advanced medical facilities, including intensive care and emergency units, in addition to various therapeutic and surgical departments.

In this regard, Dr. Heba El-Sweedy, Founder and Chairwoman of the Board of Trustees of the Ahl Masr Foundation and Burn Hospital, extended her gratitude to Telecom Egypt |WE for providing the new therapeutic laser device—the first of its kind in Egypt and the Middle East. The device is specially designed to improve the appearance of scars, help relieve patients’ pain, and support their quick and efficient return to normal life. She pointed out that having such advanced capabilities within the hospital enhances its ability to provide the highest levels of specialized and comprehensive healthcare to patients.

In this regard, Dr. Heba El-Sweedy, Founder and Chairwoman of the Board of Trustees of the Ahl Masr Foundation and Burn Hospital, extended her gratitude to Telecom Egypt |WE for providing the new therapeutic laser device—the first of its kind in Egypt and the Middle East. The device is specially designed to improve the appearance of scars, help relieve patients’ pain, and support their quick and efficient return to normal life. She pointed out that having such advanced capabilities within the hospital enhances its ability to provide the highest levels of specialized and comprehensive healthcare to patients.

For his part, Eng. Mohamed Nasr, Managing Director and CEO of Telecom Egypt, said: "Supporting children's health is one of the most important pillars of Telecom Egypt's social responsibility. We are proud of our extended partnership with the Ahl Masr Foundation for more than ten years to help alleviate the suffering of burn victims.” He added: “We are always seeking the best forms of material or technological support that ensure the highest therapeutic outcomes for our children and help ease their pain.”

The importance of this device lies in its ability to significantly shorten the treatment journey for child burn patients, as a single session with this device is equivalent to 6 to 8 sessions using conventional laser devices. This helps reduce the pain and discomfort, patients experience during the rehabilitation period. Additionally, the device enables the hospital to receive a larger number of cases and helps reduce the need for repeated exposure to local or general anesthesia, depending on the type of injury, thereby minimizing potential side effects and improving overall skin condition.

The treatment is administered over three sessions, and patients can resume their daily activities almost normally with minimal disruption. The device manufacturer also sent a specialist to train the medical staff at Ahl Masr Burn Hospital on how to operate it, given that the device is not yet available in Egypt.

It is worth noting that Telecom Egypt |WE has launched several initiatives to support burn victims in cooperation with Ahl Masr Foundation, including the “Egypt Free of Burns” initiative, which aims to raise awareness and provide training on civil protection measures against burn injuries in the most vulnerable local communities. Telecom Egypt has also sponsored the Ahl Masr Marathon, with its proceeds dedicated to building and equipping Ahl Masr Hospital, along with the telecommunications and internet services provided by the company to the hospital to enhance operational efficiency and facilitate the exchange of information among medical teams.

Khalil: "We believe that building a successful organization begins with establishing a global work culture that stimulates empowerment and excellence across our various sectors."

Nasr: "We are keen to provide a positive work environment that opens the door to innovation and excellence, ensuring sustainable growth."

In a move that reflects their shared commitment to building sustainable and inspiring work environments, Raya Holding for Financial Investments and Telecom Egypt | WE are participating as strategic partners in People Summit Egypt 2025, organized by the Top Employers Institute, the global organization that grants accreditation to leading workplaces.

In its first edition in Egypt, the event brings together a distinguished group of executive leaders and human resources experts to discuss the most prominent global trends in the work environment and to exchange best practices between institutions accredited as Top Employers and those aspiring to attain this designation.

Raya Holding and Telecom Egypt |WE’s sponsorship of this summit comes within the framework of their commitment to supporting the business community by adopting a culture of empowerment, sharing their successful human resources experiences, and contributing to developing the local work environment in line with the highest international standards.

Commenting on this initiative, Ahmed Khalil, Managing Director of Raya Holding, said: "At Raya, we believe that real investment starts with our human resources. With a team of more than 18,000 employees across 11 companies in our diverse investment portfolio, we strive to create a work culture based on empowerment, continuous development, and genuine appreciation of our workforce. Receiving the Top Employer Award for the third consecutive year, and with higher recognition each year, reflects our genuine commitment to providing a work environment that aligns with the best international standards and meets the aspirations of our employees. We do not view human resources merely as an administrative function; we see it as the heart of our strategy and the starting point for all growth and transformation at Raya."

He added: "Our partnership and official sponsorship of People Summit 2025, alongside Telecom Egypt, is an extension of our role as a company that drives dialogue about the future of work, opens broader horizons for more humane and effective practices, serves our workforce, supports our vision for a better future, and reflects our commitment to raising standards of employment and human development in Egypt and the region."

For his part, Eng. Mohamed Nasr, Managing Director and CEO of Telecom Egypt, said: We always strive to adopt the best global practices in human resources management, providing a positive work environment that fosters a culture of innovation and development, and enhances employees’ capabilities to ensure sustainable growth while delivering the highest level of service to our customers. Our talented human resources have always been a key driver in leading our company towards excellence and achieving customer satisfaction throughout a history spanning more than 170 years. We are proud to sponsor this summit in Egypt, which brings together HR experts and opens avenues for cooperation and knowledge exchange that will positively impact the work environment across Egyptian companies."

Raya Holding has received the Top Employer Award in Egypt for three consecutive years (2023, 2024, 2025) after successfully passing a comprehensive evaluation conducted by Top Employer Institute, covering more than 20 key areas in human capital resources management, including professional development, learning programs, work-life balance, leadership, and employees’ physical

and mental well-being. This reflects Raya Holding’s strategy that the employee experience is the foundation for sustainable and inclusive growth and its commitment to applying global standards in staff development and wellbeing. Raya Holding was selected from over 2,000 companies evaluated and certified by the Institute across 121 countries worldwide, achieving this distinction for three consecutive years and highlighting its excellence in creating a work environment that competes globally.

Telecom Egypt |WE also received the Top Employer Award for 2025, for the second consecutive year, in recognition of the company’s outstanding efforts to provide an ideal work environment for employees, offering opportunities for professional growth, skill acquisition, fostering a culture of innovation and development, and enabling employees to perform their work efficiently and effectively.

WE, Egypt’s leading telecommunications operator, has announced the signing of a strategic partnership with B.TECH, a market leader in consumer electronics retail and consumer finance services in Egypt. The partnership aims to offer a wide range of exclusive offers and services to WE customers through B.TECH’s extensive nationwide retail network.

Under this partnership, WE will collaborate with B.TECH as part of the WE Bonus loyalty program, enabling fixed broadband and mobile customers to redeem their points at all B.TECH stores. This step is set to strengthen the integration between digital services and retail, while also introducing additional exclusive privileges for fixed broadband customers—enhancing the overall customer experience.

The partnership reflects the commitment of both WE and B.TECH to delivering real added value to customers by offering a fully integrated shopping experience. It provides users with enhanced access to products and services, along with innovative reward programs designed to provide customers with a wide range of benefits.

As part of the collaboration, WE customers will also gain access to B.TECH’s latest services, including Mylo, which offers flexible installment plans and a seamless purchasing experience, in addition to benefiting from TECH CARE, a suite of integrated technical support and maintenance services designed to ensure convenience and optimal device performance.

Eng. Mohamed Nasr, Managing Director and CEO of Telecom Egypt, stated: “This partnership comes as part of our ongoing efforts to elevate customer experience by addressing their real needs and enabling solutions that genuinely improve their lives. We will continue to pursue such collaborations to ensure our customers receive the greatest possible value.” He added: “Our partnership with B.TECH will allow us to deliver substantial added value to customers through innovative loyalty programs and a superior shopping experience.”

Dr. Mahmoud Khattab, Chairman and Managing Director of B.TECH, expressed his enthusiasm for the collaboration, saying: “Partnering with WE is a strategic step that reflects B.TECH’s vision to strengthen cooperation with major national entities. We believe in the importance of integrating the retail and telecommunications sectors to provide innovative solutions and services that enhance the customer experience and meet their expectations.” He added, “Through this partnership, we aim to support digital transformation efforts by delivering a smart, flexible shopping experience that brings together the power of technology and retail.”

Q1 2025 Key Highlights

Total revenue increased by 42% YoY to reach EGP 24.8bn, led by strong growth momentum in the Retail segment, contributing 57% to total revenue and driving 56% of the YoY revenue growth.

Customer base increased YoY across Mobile, Fixed Broadband, and Fixed Voice by 10%, 8%, and 4%, respectively.

EBITDA grew by 49% YoY to EGP 10.9bn, reaching a robust margin of 44%, up from 42% in the previous year.

Income from VFE increased by 3.6x YoY to reach EGP 3.2bn.

Normalized net profit reached EGP 5.2bn, reflecting a 39% YoY increase and a 21% net profit margin.

In service, CapEx reported EGP 2.3bn (9% of sales), while Cash CapEx reported EGP 6.8bn (27% of sales).

Net debt/EBITDA (annualized) improved to 1.6x compared to 2.2x in Q4 2024.

FCFF (excluding EGP 0.2bn for licenses) amounted to EGP 3.8bn, implying a FCFF/EBITDA ratio of 35%.

Mohamed Nasr, Managing Director and Chief Executive Officer, commented: "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.

We started the year with total revenue rising 42% YoY to EGP 25 billion, driven by robust performances across both our Retail and Wholesale segments. EBITDA grew by 49% YoY, achieving a robust margin of 44%, as our operational efficiency enabled us to outpace inflationary cost pressures.

In the Retail segment, revenue increased by 40% YoY, led by a 45% growth in the Home & 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. As Egypt’s largest telecom infrastructure provider and a key regional player in the global connectivity landscape, we are now reaping the rewards of a decade of responsible, strategic investments. 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.

Adjusting for EGP 0.7bn in FX loss in Q1 2025 and EGP 0.2bn FX gain in Q1 2024, normalized net profit grew 39% YoY to EGP 5.2 billion, recording 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. Cash CapEx declined 55% YoY, in line with our strategy to optimize spending while maintaining operational excellence and securing future growth. Our disciplined financial approach has driven strong cash flow generation, with FCFF, excluding EGP 0.2bn in licenses, reaching EGP 3.8bn, implying an FCFF/EBITDA of 35%. This performance aligns with our quarterly budget and keeps us well on track to achieve our full-year targets, highlighting our ability to allocate resources efficiently and strengthen our financial position.

In a dynamic, capital-intensive industry that demands continuous investment and innovation to secure long-term growth, we remain focused on optimizing our capital structure, enhancing profitability, and strengthening cash flow generation. Guided by a clear strategic vision that aligns with the Sustainable Development Goals and integrates leading ESG practices, and reinforced by strong partnerships and a highly committed team, we are well-positioned to deliver long-term, sustainable value to our stakeholders. Our commitment to operational efficiency and financial resilience gives us confidence in maintaining this positive momentum and unlocking further growth in the quarters ahead.”

Telecom Egypt today announced changes to its Board of Directors, appointing Lobna Helal as Chair of the Board. She succeeds Dr. Magued Osman, who stepped down after a nine-year tenure, having served as Chair since 2016. Helal, an independent board member since March 2019, is the first woman to lead Telecom Egypt’s Board, marking a significant milestone in the company’s history.

The Board has also re-appointed Mohamed Nasr as Managing Director and CEO for a second term, ensuring continuity in leadership and execution of the company’s strategic goals. The changes were approved during the Board meeting held today and are effective immediately.

Lobna Helal, Chair of the Board, commented: "I would like to extend my sincere gratitude to Telecom Egypt’s Board of Directors for entrusting me with this role. It is a profound honor to serve as the first woman to chair the Board, and I embrace this responsibility with a deep commitment to upholding the highest standards of corporate governance, strategic oversight, and sustainable growth. With a career dedicated to financial stability, banking reform, and economic development, I look forward to leveraging my experience to further strengthen Telecom Egypt’s position as a leading telecom provider. By drawing on my expertise in regulatory frameworks, risk management, and financial restructuring, I will work closely with my esteemed fellow board members to drive innovation, optimize operational efficiency, and create long-term value for our stakeholders. I would also like to extend my heartfelt appreciation to Dr. Magued Osman for his outstanding leadership, dedication, and invaluable contributions over the past nine years. His legacy has provided a strong foundation for Telecom Egypt, upon which we will continue to build to ensure a prosperous and innovative future for the company.”

Mohamed Nasr, Managing Director and Chief Executive Officer at Telecom Egypt, commented: "I am grateful to the Board for their continued trust and reappointment. Over the past few years, Telecom Egypt has made significant strides, and I remain committed to furthering our progress by delivering sustainable growth, driving innovation, and ensuring the highest standards of service for our customers. I look forward to working closely with the Board under the visionary leadership of Lobna Helal as the new Chairperson. Together, we will strive to achieve new milestones, solidify Telecom Egypt’s position as a regional data hub, and lead the way in advancing digital transformation across Egypt and the region.”

About Lobna Helal

Lobna Helal was appointed to Telecom Egypt’s board as an independent member in March 2019. Ms. Lobna Helal has over 30 years of experience in the banking sector. She most recently served as Deputy Governor of the Central Bank of Egypt (CBE) for Monetary Stability Policies, serving two terms: from 2011 to 2013 and from 2015 to 2019. She was the first woman to hold this position in the history of the CBE, overseeing key sectors including monetary policy, reserve management, markets, external relations, research, banking operations, information technology, payment systems, and banking sector reform.

She was responsible for designing, implementing, and developing a comprehensive monetary and economic reform program that spanned three years and concluded successfully in June 2019. The program featured adjustments to fiscal and monetary policies alongside structural reforms to place the Egyptian economy on a sustainable path. Its core achievements included liberalizing the foreign exchange system and transitioning to an inflation-targeting regime by modernizing the CBE’s monetary policy framework.

Since joining the Central Bank in 2004, Ms. Helal prepared and executed a two-phase program from 2004 to 2011 to develop and restructure the banking sector. This program protected the Egyptian banking sector and economy from the adverse effects of the 2008 global financial crisis.

In addition to representing the CBE in numerous institutions as Deputy Governor, Ms. Helal served as an independent expert and non-executive Chair of the Credit Risk Guarantee Company. She also served as an expert and non-executive board member of the Nasser Social Bank, the National Investment Bank, the Mortgage Finance Support Fund, and the Social Housing Fund, as well as non-executive Chair of the Egyptian Mortgage Refinance Company.

Ms. Helal currently holds several positions including non-executive Chair of City Edge Developments, board member of the National Bank of Egypt (London), board member of Egypt's Sovereign Wealth Fund, expert member of the Social Housing Fund's board, independent board member of Alex Bank, Chair of the Board of Trustees of the Innovation for Sustainable Development Foundation, and board member of El-Nidaa Foundation.

Ms. Helal represented the CBE as Vice Chair of the Board of Directors of the Financial Inclusion Alliance (AFI) and Vice Chair of the Gender and Women’s Financial Inclusion Committee.

Before her role at the Central Bank, Ms. Helal served as CEO of the Hermes Financial Group, overseeing mergers and acquisitions and fixed-income instruments.

She was named the second most powerful woman in Forbes Magazine’s 100 Most Powerful Women in the Middle East and North Africa Region for the years 2016 and 2018. The magazine also named her the third most influential woman in the region's public sector in 2018.

Ms. Helal holds a Master's degree in Economics from the American University in Cairo.

WE, Egypt's leading national ICT services provider, announced the signing of a Memorandum of Understanding to build a strategic partnership with Commercial International Bank (CIB), Egypt's largest private sector bank, to deliver an innovative model to expand WE customers' access to financial services across Egypt.

Under this partnership, CIB will develop financial products and services tailored specifically for WE customers, utilizing the latest and most appropriate digital models and programs within the Banking-as-a-Service model. This partnership will also leverage WE's extensive geographic reach, wide distribution channels, and services provided to millions of customers, creating added value for both institutions and contributing to financial literacy, the integration of the informal economy, limiting the banknote circulation, and thus greater financial inclusion.

This initiative aligns with Egypt's digital transformation goals, promoting financial inclusion by integrating banking services into the WE digital ecosystem. This collaboration reflects CIB's commitment to innovation and customer-centric banking, ensuring financial services are available anytime, anywhere.

By combining efforts, WE and CIB are setting a new standard for cooperation between the banking and ICT sectors, paving the way for a more connected and financially inclusive future.

Eng. Mohamed Nasr, Managing Director and CEO of Telecom Egypt "WE", said: We put our customers at the top of our priorities, and through this partnership with CIB, we are taking a new step towards providing integrated digital financial services that facilitate the lives of millions of Egyptians. Our extensive geographical reach and advanced digital infrastructure, in addition to our presence in every Egyptian home, enable us to reach our customers with valuable offerings that meet their needs and enhance their experience. He added, "This partnership represents a key pillar in our strategy towards enhancing financial inclusion and contributing to building a more inclusive and sustainable digital economy". We are proud to partner with CIB to deliver a seamless banking experience within our ecosystem."

Mr. Rashwan Hammadi, Chief Retail, Commercial banking and financial inclusion executive, said: "We have a deep belief in the importance of leveraging technology, data analysis, and building strategic partnerships to enhance access to financial services innovatively. This partnership represents an important step towards a more advanced digital banking future by combining CIB's banking expertise, our digital sophistication, and WE's vast infrastructure and unparalleled geographical reach. We hope that our collaboration with WE will enable millions of customers to access banking services easily and securely, reinforcing our commitment to digital innovation and financial inclusion.

Telecom Egypt and the National Telecommunications Regulatory Authority NTRA celebrated the graduation of students from the WE Innovate Academy and Camp "WE INNOVATE", which was launched within the state's interest in building human capabilities and qualifying young people. As one of the most important items of the National Cybersecurity Strategy launched by the Supreme Council for Cybersecurity, headed by His Excellency Dr. Amr Talaat, Minister of Communications and Information Technology, the celebration was held at the headquarters of Telecom Egypt in Smart Village, on February 6, in the presence of Eng. Mohamed Nasr, Managing Director and CEO of Telecom Egypt, and Eng. Walid Zakaria, Supervisor of the Cybersecurity department, representing the National Telecommunications Regulatory Authority.

The "WE Innovate" Academy and Camp was launched through a strategic cooperation protocol between Telecom Egypt and the National Telecommunications Regulatory Authority, and hosted by the Information Technology Institute, to build the capabilities of promising youth in the field of cybersecurity, within the framework of the "Cyber Skills" initiative to train a thousand trainees, including students and recent graduates.

Over the past two years, the initiative has provided intensive training paths for a large number of trainees through specialized training tracks. Two training courses were offered in 2023, benefiting 200 trainees across three specialized training tracks. In 2024, the initiative's activities were expanded by offering two additional courses, covering 225 trainees, and increasing the number of tracks to include five different fields. furthermore, a bootcamp was hosted where 200 trainees were trained in four tracks in cybersecurity, allowing the Egyptian university students to gain practical experience in this vital field; in addition to developing cybersecurity content through the "Mahara Tech" platform, to expand access for learners and enrich the content in this important specialized field.

The WE Innovate initiative reflects Telecom Egypt's continued commitment to fostering cybersecurity in Egypt, as a vital element in promoting digital transformation and protecting the digital future. Accordingly, the initiative is based on three main axes: capacity building, innovation promotion, and business accelerators. The WE Innovate Hackathon was organized twice, attracting more than 2,400 participants who competed to create innovative cyber solutions, in which 10 teams won, while five qualified for regional competitions. Two of the five teams won first and third place in the 2024 Arab Cybersecurity Challenge.

At the level of business accelerators and startup support, the initiative supported three winning startups in 2023. Last year, two companies graduated from the program, while three new companies were incubated. The international recognition and creativity of the WE Innovate graduates are demonstrated through a winning startup of the Super Nova Africa Award at GITEX Dubai 2024.

Ookla, the global leader in internet speed testing, awarded WE the title of “Fastest Mobile Network in Egypt" and "Fastest Terrestrial Internet in North Africa", in a ceremony held by the company on the sidelines of the MWC 2025 in Barcelona from March 3 to 6. The two awards were received by Eng. Mohamed Nasr, Managing Director and CEO of Telecom Egypt.

Ookla's awards are based on rigorous analysis of user-initiated tests via the speedtest app, the world's leading testing platform. WE's recognition confirms Telecom Egypt's dedication to improving the customer experience through ongoing infrastructure investment and modernization. By leveraging the latest global advancements in telecommunications and IT, the company delivers the highest service quality, meeting the growing data and digital needs of Egyptian consumers and businesses.

Commenting on the celebration, Eng. Mohamed Nasr, Managing Director and CEO of Telecom Egypt, said: "A new certificate from Ookla confirms our leadership in the telecommunications market in Egypt and the region, and reflects our constant commitment to infrastructure development and ensuring that the WE customer receives the best level of telecommunications and IT services." He added: "Telecom Egypt will maintain its strategic focus on improving its customers' experience and meeting their needs to keep pace with the increasing growth in the use of electronic applications and advanced digital services."

WE announced the signing of a cooperation protocol with major civil society organizations (NGOs) in Egypt to launch its largest initiative to distribute one million food cartons during the holy month of Ramadan nationwide. The company signed cooperation protocols with the Egyptian Food Bank, Misr El Kheir Foundation, and Sonaa Elkhair Foundation, intending to celebrate the holy month with the Egyptians, and emphasizing the company's societal role and its keenness to spread the values of cooperation and solidarity among members of society.

WE seeks to benefit the largest number of beneficiaries across the country by cooperating with major civil society organizations that have extensive experience in community work, utilizing their accurate databases to reach remote villages and hamlets, distributing food cartons to residents, sharing the joy of the holy month with them, and contributing to lessening the economic burdens imposed by current global circumstances.

The initiative aims to distribute one million cartons of food, a significant increase over last year, with a focus on some groups, most notably unemployed women, the elderly who are unable to work, families that include people with disabilities who need additional support, and children in orphanages affiliated with the Ministry of Social Solidarity. It is also keen to reach villages, hamlets, and neighborhoods that are difficult to reach, as well as border areas such as Halaib, Shalateen, and North Sinai, South Sinai, Marsa Matrouh, Al Wahat, the Red Sea, the New Valley, and the governorates of southern Upper Egypt.

Mayar Naguib, Head of Corporate Communications and CSR at WE, said: "I am happy to expand the scope of our initiative this year, reach a greater number of beneficiaries than last year, and contribute to pleasing them in the holy month." " She added: "We have a clear strategy for community responsibility through which we seek to provide support to the most favored segments of society everywhere. Therefore, our cooperation with major civil society institutions today aims to reach all regions of the country. We also seek to spread the values of giving and cooperation among our colleagues at "WE" who were keen to contribute and volunteer for packing the boxes."

Mohsen Sarhan, CEO of the Egyptian Food Bank, expressed his appreciation for continuing the partnership with WE, saying: "We are pleased to renew our strategic partnership with WE and continue our role in promoting the values of social solidarity by providing healthy food to our people in all governorates throughout the holy month of Ramadan." He added, "During the month of Ramadan, we witness the greatest models of community solidarity through the contribution of all institutions and companies in achieving the Egyptian Food Bank's message towards ensuring food security for the most vulnerable groups."

for his part, Dr. Mohamed Rifai, CEO of Misr El Kheir Foundation, said: "We are proud of our partnership with 'WE', which is always keen to support community development efforts in Egypt." He added: "This partnership reflects the company’s belief in the importance of social solidarity, the keenness to contribute effectively to achieving the sustainable development goals in our society, and unifying efforts to reach thousands of families in various governorates of Egypt." He also pointed out that "this partnership is a model for cooperation between the private sector and civil society, to provide a better life for all Egyptians."

Mustafa Zamzam, Chairman of the Board of Trustees of Sonaa Alkhair Foundation, member of the Board of Trustees of the National Alliance, and ambassador of the Presidential Initiative for a Decent Life, explained that Sonaa Alkhair’s cooperation with "WE" continues to provide support to many Egyptian families in the various governorates of Egypt, Through cooperation with the foundation, WE succeeded in delivering many distinguished services to people in all governorates/ villages and hamlets. ” Foundation's work teams and volunteers will begin distributing aid, racing against time to deliver it to the most needy families during the holy month.

FY 2024 Key Highlights

Total revenue increased by 45% YoY, driven primarily by a 48% YoY increase in Data revenue, contributing 41% to the overall growth, followed by a 68% surge in International Direct Dialing (IDD) revenue and a 21% YoY rise in Domestic Infrastructure Services revenue.

Customer base increased YoY across Mobile, Fixed Broadband, and Fixed Voice by 13%, 8%, and 6%, respectively.

EBITDA witnessed a 45% YoY increase, recording a 40% margin.

Normalized net profit (excluding EGP 4.9bn FX losses and EGP 0.6bn early retirement compensation) reached EGP 14.3bn, marking a strong 22% YoY increase. This growth was driven by robust operational performance and a 64% rise in VFE income, offsetting the impact of a 48% increase in D&A and a 1.5x rise in interest expenses caused by the EGP devaluation.

In-service CapEx reported EGP 19.8bn (24% of sales), while Cash CapEx reported EGP 35.1bn (43% of sales).

Net debt/EBITDA recorded 2.2x compared to 1.7x in FY 2023, given the 64% upside in gross debt due to the revaluation of foreign-currency-denominated debt.

FCFF, excluding the mobile license fees of c. EGP 6bn, reached EGP 4.4bn.

Mohamed Nasr, Managing Director and Chief Executive Officer, commented: "Telecom Egypt continues to lead the Egyptian telecommunications market with outstanding performance during 2024. The Egyptian market is promising and filled with growth opportunities, which Telecom Egypt is well-positioned to seize while navigating any regional or global economic challenges with resilience and a steadfast commitment to delivering on its strategic priorities – reinforcing its position as a strong and reliable partner for all domestic and global stakeholders.

We successfully closed the year with remarkable growth, with total revenue increasing by 45% YoY to reach EGP 82 billion. EBITDA grew by 45% YoY, maintaining a strong margin of 40%. This performance reflects robust top-line growth and disciplined cost-optimization efforts, enabling us to achieve our target margins despite persistent inflationary pressures. However, we are now witnessing signs of cost-based stabilization. This reflects the recent easing of inflationary pressures and a shift to a new, more predictable cost structure, providing greater clarity for future planning.

Organically, our core business segments performed exceptionally well. The Retail segment recorded 42% YoY growth, driven by an expanding customer base and the successful implementation of price adjustments earlier in the year and again in December. Data revenue remained the primary growth driver for this segment, expanding by 48% YoY, fueled by the rapid adoption of bandwidth-intensive applications, increased smartphone penetration, and the growing shift toward cloud-based services. The proliferation of video streaming, online gaming, and IoT-enabled solutions has amplified demand for high-speed, low-latency connectivity, reinforcing our network’s critical role in supporting Egypt’s evolving digital ecosystem.

The Wholesale segment delivered a strong 48% YoY growth, mainly driven by the growth in International Calls, Domestic Infrastructure Services, and Capacity Sales, contributing 16%, 6%, and 5% to total revenue growth, respectively. Telecom Egypt remains a key global connectivity hub, leveraging its extensive submarine cable infrastructure and strategic geographic position. Throughout the year, we signed multiple agreements to monetize assets, expand subsea capacity, and support rising global data traffic. These efforts strengthen our role in enabling international connectivity while capitalizing on increasing demand from cloud providers, content platforms, and global carriers. Net profit stood at EGP 10.1 billion, marking a 14% YoY decline, primarily due to the EGP 4.9 billion in non-recurring FX losses and EGP 0.6 billion in early retirement compensation.

Excluding these one-offs, normalized net profit reaches EGP 14.3 billion, reflecting a 22% YoY increase and a 17% margin. Excluding the mobile license fees, FCFF recorded EGP 4.4bn, delivering on our target to achieve a positive free cash flow to firm by year-end, and reflecting the company’s strong cash flow generation capabilities. We recognize that the volatile macroeconomic environment over the past two years has presented significant challenges to our profitability and cash flow. Nevertheless, our business fundamentals remain strong, and we have taken proactive measures to optimize our capital structure, enhance profitability, and improve cash flow. These efforts reflect our unwavering commitment to addressing the concerns of our shareholders and investors while strengthening our long-term financial position.

The strong foundations we established in 2024 position us for sustainable growth in the years ahead. We expect to deliver robust financial results in 2025, supported by a strengthened financial position, disciplined capital allocation, and robust operational performance, driven by our vast fixed fiber network and our best-in-the-market mobile network, enabling us to deliver premium, fully-integrated services to our customers. Reflecting our confidence in the company’s solid performance and our commitment to delivering shareholder value, the Board of Directors has proposed a dividend of EGP 1.50 per share for 2024, subject to the general assembly’s approval.”

WE, the leading provider of communications and information technology services in Egypt, announced its cooperation with Vezeeta, the leading digital platform in the field of healthcare in the Middle East and Africa, to provide a unique added value to WE GOLD customers, allowing them easier and better access to high-quality healthcare services at great discounts.

This step derives from the company’s strategy to achieve the customer's interest and provide a distinctive experience for them. It is not limited to superior communications services, but extends beyond that to achieve added value that contributes to enhancing the customers’ quality of life. Through this cooperation, WE GOLD customers will be able to use many health benefits during the " Shamel" program, which is the latest version of Vezeeta, offering discounts on all healthcare services in a fully digital experience.

Under this collaboration, WE offers WE GOLD customers an annual subscription in " Shamel", which gives them discounts on all healthcare services through a network of more than 8,000 service providers, including analysis and radiology services, surgeries, doctor consultations, and pharmacy supplies, in addition to optional healthcare services such as dentistry, plastic surgeries, and physical therapy without prior approvals.

Commenting on this cooperation, Eng. Mohamed Nasr, Managing Director and CEO of Telecom Egypt, said: "This cooperation represents a pivotal point within the framework of our customer-centric strategy, through which we seek to improve the quality of life of our customers in every possible way. Through our partnership with Vezeeta, we will contribute to making healthcare easier and less costly, confirming our commitment to caring for our customers in all aspects of their lives. "We are keen to be a true partner to them," he added. "We will continue to provide exclusive benefits to WE customers, guaranteeing them a better life."

For her part, Dr. Ola Ali El-Din, Chief Operating Officer of Vezeeta, said: "Our mission at Vezeeta is to facilitate access to high-quality healthcare services through smart solutions and advanced technology, which we recently crowned with the launch of Shamel “The program added a new dimension that reduces the burden of healthcare costs to make the services affordable for the different segments of society. We are proud of this partnership with WE, which will enable a large segment of its customers to access the unprecedented "Shamel" benefits, to cover their medical needs with ease and convenience through the Vezeeta application.

Telecom Egypt is pleased to announce it has signed several landmark service agreements with Orange Egypt, aimed at enhancing strategic cooperation between the two companies. These agreements will enable Orange Egypt to enhance its technological services and better meet the needs of its customers. This collaboration highlights the rise in technological investments in the Egyptian market, the priority placed on strengthening digital infrastructure, and the continued expansion of advanced service offerings.

The agreements were signed by Mohamed Nasr, Managing Director and CEO of Telecom Egypt, and Yasser Shaker, Managing Director and CEO of Orange Egypt, in the presence of H.E. Dr. Amr Talaat, Minister of Communications and Information Technology, and Mohamed Shamroukh, CEO of the National Telecom Regulatory Authority (NTRA).

These agreements have a total combined value of approximately EGP 15 billion, which will be disbursed over their duration. They also include an extension of transmission services for an additional three years, lasting until 2032. Additionally, they include a new contract to provide fiber-to-the-site (FTTS) services to Orange's mobile sites over three years.

The two companies also signed a Service Level Agreement (SLA) aimed at strengthening Orange’s position as a leading provider of high-speed mobile internet and telecommunications services. These agreements will also support Orange Egypt’s preparations for the rollout of its 5G services. Additionally, the agreements include amendments to the existing fixed internet services agreement, which focus on improving the cost-efficiency of services in the telecommunications market. This will enable Orange Egypt to offer customers better deals and pricing through more efficient commercial models, allowing the delivery of higher-tier packages to end-users at more competitive rates.

The longstanding partnership between the two companies has created a strong foundation for exceptional business relations within the Egyptian market, driving its growth and delivering optimal benefits for all parties involved.

H.E. Dr. Amr Talaat, Minister of Communications and Information Technology, commented: “The Ministry is dedicated to improving telecommunications services for citizens. Recently, several initiatives and agreements have significantly enhanced these services, including the launch of 5G services, embedded SIM (eSIM) services, and Wi-Fi Calling. Additionally, an agreement between NTRA and mobile operators has reformed the regulatory framework, ensuring that financial resources from regulatory activities are directed toward projects that improve service quality. Looking ahead, more initiatives and agreements will be introduced to achieve further advancements. Over the past three years, NTRA and mobile operators have collaborated to expand and deploy mobile towers nationwide, covering both urban and rural areas. By mid-2025, we expect that mobile tower coverage for all three phases of the "Decent Life" villages project will be completed, at a total cost of EGP 9 billion. Additionally, all newly constructed highways will be fully covered with mobile services."

Yasser Shaker, CEO and Managing Director of Orange Egypt, commented: "We are delighted with our continued collaboration with Telecom Egypt, which includes extending the transmission services agreement between the two companies, signing the fiber-to-the-site (FTTS) agreement to connect mobile sites, and amending the fixed internet services agreements, in addition to the existing agreements. These initiatives will help increase operational capacity, enhance efficiency, and further solidify Orange's position in Egypt as a leading provider of telecommunications and mobile internet services. I would also like to extend my gratitude to Dr. Amr Talaat, Minister of Communications and Information Technology, for attending the signing of these agreements. His presence provides valuable motivation for both companies to strengthen their strategic collaboration, drive the delivery of more advanced services to customers, and bolster the competitiveness of the Egyptian ICT market.”

Mohamed Nasr, Managing Director and Chief Executive Officer of Telecom Egypt, commented: "We are proud to sign these long-term agreements with Orange Egypt, one of our key clients in the Egyptian market, to support their growth and commitment to providing top-notch services to their customers. This relationship is further strengthened through our ongoing efforts to expand the deployment of our fiber-optic network, connecting over 1,000 of Orange Egypt’s mobile sites, and supporting their expansion in providing high-speed fixed internet services. These long-term agreements reaffirm the confidence in Telecom Egypt’s reliable infrastructure and extensive technical expertise, solidifying our position as the preferred partner for operators seeking to develop their businesses and meet customer demands. Additionally, I would like to emphasize that these agreements will help us maximize the returns on the substantial investments we have made in recent years to enhance our infrastructure."

China Mobile International (CMI) and Telecom Egypt have announced a strategic commercial agreement signed by Mr. Wang Hua, Chairman and Chief Executive Officer of CMI, and Mr. Mohamed Nasr, Managing Director and Chief Executive Officer of Telecom Egypt. This landmark commercial agreement capitalizes on both companies’ investments in subsea cable infrastructure and resource sharing to address the rapidly growing data needs of businesses and consumers worldwide. This partnership also includes a suite of innovative, enterprise-grade digital and business services tailored to meet the dynamic needs of enterprises in Egypt and across the region.

This strategic agreement marks the deepening of the relationship between CMI, a wholly owned subsidiary of China Mobile—renowned for operating the world’s largest network, serving the largest customer base, and leading in profitability, brand value, and market rankings—and Telecom Egypt, the total telecom services provider in Egypt and one of the largest subsea cables operators in the region.

A key element of this partnership is the international infrastructure commercial agreement, which centers on expanding the global reach of both companies, reinforcing their shared commitment to delivering high-quality, uninterrupted services in an increasingly interconnected world. This transaction strengthens the diversity and resilience of both companies' networks by providing additional routes across segments of their respective cable systems, delivering more reliable connectivity services. As such, the collaboration unlocks additional value and reflects a cost-effective approach, underscoring their devotion to developing robust network infrastructure worldwide.

Furthermore, by combining CMI's advanced digital solutions with Telecom Egypt's robust nationwide infrastructure, extensive market expertise, and widespread regional reach, both organizations will explore customized DICT (Digital, Information, Communication, and Technology) solutions to advance smart services for enterprises, aiming to empower businesses with scalable solutions that drive digital transformation and reinforce their positions as leaders in the enterprise services market.

CMI and Telecom Egypt will continue to leverage their resources and expertise to boost services for global enterprises and consumers and accelerate digital economy development, creating greater economic benefits and societal value.

Telecom Egypt’s Board of Directors has approved the 2025 budget with KPI guidance as follows:

• Revenue growth percentage planned in the low twenties

• EBITDA margin projected in the high thirties

• In-service CapEx-to-sales ratio projected in the low twenties

• Positive FCFF-to-EBITDA ratio estimated in the early forties.

Mohamed Nasr, Managing Director and Chief Executive Officer, commented: "We are optimistic about 2025 and confident it will be another strong year for Telecom Egypt. As the global macroeconomic conditions show signs of stabilization, our budget reflects our belief in the resilience and strength of our business model, which continues to navigate the complexities of the current economic landscape effectively.

We aim to continue our growth momentum while retaining our operating expenses amid the current inflationary environment to maintain and enhance our profitability. On the capital expenditure front, we have optimized our plans, underscoring our commitment to prioritize high-yield investments that drive our network enhancement and the quality of our services while improving our cash flows. By carefully reducing expenditure while maintaining revenue growth, we aim to generate healthier cash flows without compromising our strategic objectives.

Looking ahead, we remain focused on harnessing the full potential of our diverse service portfolio to fuel sustained growth. We will also prioritize the strategic monetization of our assets and infrastructure while rigorously optimizing costs to drive operational efficiency. Our unwavering commitment to sustainable growth across our core business lines positions us to deliver long-term value for our shareholders.”

Nasr: We Are Keen to provide Our Customers with the Latest Innovative Communications Technologies

Telecom Egypt| WE announced today the official launch of its eSIM services, following approval from the National Telecommunications Regulatory Authority (NTRA). This reflects Telecom Egypt’s commitment to providing its customers with the latest global communications and information technology innovations, as well as expanding its portfolio of advanced services that meet customers’ needs. This comes in line with the company’s customer-centric strategy, which supports Egypt’s plans for sustainable development and digital transformation.

The eSIM is an ideal alternative to the traditional SIM card, enabling customers to switch between different mobile networks without the need to use multiple physical SIM cards. It allows users to store information for multiple SIMS and move between them easily, while also eliminating the risk of damage or loss associated with physical SIM cards.

Eng. Mohamed Nasr, Managing Director and CEO of Telecom Egypt, stated: “Launching the eSIM service for our customers aligns with our strategy of fulfilling customer requirements and providing them with the latest communications technologies worldwide, while keeping pace with rapid digital advancements and modern lifestyles amid the global digital transformation.”, “We are committed to providing innovative communications solutions that ensure our customers gain maximum benefit from digital services and that reinforce our leadership in the Egyptian telecommunications market.” He added.

The service will be available to all individual customers, whether through SIM replacement or when purchasing a new SIM. For business customers, the service will be available in the case of SIM replacement only.

Looking ahead, we remain focused on harnessing the full potential of our diverse service portfolio to fuel sustained growth. We will also prioritize the strategic monetization of our assets and infrastructure while rigorously optimizing costs to drive operational efficiency. Our unwavering commitment to sustainable growth across our core business lines positions us to deliver long-term value for our shareholders.”

Telecom Egypt, Egypt’s market-leading telecom operator, has been awarded the Tier III Design Certification for its Regional Data Hub 2 (RDH 2) data center. This prestigious certification was granted after a comprehensive assessment and evaluation by expert teams from Uptime Institute, a world leader in the standardization of digital infrastructure performance.

Building on the success of RDH 1, which reached full utilization in just one year and earned multiple Tier III Uptime Institute certifications, the certification of RDH 2 reaffirms Telecom Egypt’s commitment to maintaining high data center standards. The design certificate ensures that RDH 2, like RDH 1, meets the rigorous mechanical, electrical, structural, and site criteria, confirming that the facility’s capacity and functionality align with its engineering and architectural plans.

With an estimated IT load of 4.6MW for RDH 2—compared to 2.5MW for RDH 1— RDH 2 represents a significant expansion to meet the growing market demand for secure and resilient Tier III data center services. This expansion also enhances Telecom Egypt’s IT infrastructure, offering greater scalability and ensuring business continuity, particularly for businesses transitioning to the cloud.

It is worth noting that Telecom Egypt is also registered for the Leadership in Energy and Environmental Design (LEED) program for RDH 2, reinforcing its commitment to energy-efficient and sustainable data center development. LEED, a globally recognized standard, evaluates buildings across key areas such as energy, water, waste, transportation, and user experience. This initiative highlights Telecom Egypt's dedication to reducing its environmental footprint through resource optimization and carbon emission reduction.

By integrating sustainable design and resource-efficient practices, Telecom Egypt is not only advancing its sustainability goals but also ensuring operational excellence. These efforts reflect the company's broader commitment to environmental responsibility and long-term growth, aimed at minimizing the impact of development on local, regional, and global ecosystems.

The execution of RDH 2 is expected to be completed by the end of 2025. Once operational, RDH 2 will further strengthen Telecom Egypt’s leadership in the region’s data center market by leveraging the 13 submarine cable systems currently landing on Egypt’s eastern coast, with plans to expand this number to 18 by 2025. This expansion will also reinforce Egypt’s strategic role as a global connectivity hub, providing cutting-edge infrastructure and unmatched industry reliability.

Mohamed Nasr, Managing Director and Chief Executive Officer at Telecom Egypt, commented: "We are pleased to have achieved the Tier III Design Certification for RDH 2 and remain committed to pursuing all three Uptime Institute certifications for this new facility. This achievement reflects our unwavering focus on delivering world-class data center services that meet the evolving demands of the digital economy. This expansion aligns with Telecom Egypt’s strategy to drive global digital transformation and connectivity on a broader scale. By empowering businesses and communities with cutting-edge technology, we are advancing Egypt’s digital economy while contributing to a more connected and inclusive world. Our focus on sustainability, innovation, and inclusivity remains central to our mission of transforming lives and enabling a prosperous, sustainable future for Egypt, the region, and beyond.”

Looking ahead, we remain focused on harnessing the full potential of our diverse service portfolio to fuel sustained growth. We will also prioritize the strategic monetization of our assets and infrastructure while rigorously optimizing costs to drive operational efficiency. Our unwavering commitment to sustainable growth across our core business lines positions us to deliver long-term value for our shareholders.”

 

9M 2024 key highlights.

• Total revenue increased by 39% YoY to reach EGP 58.4bn, driven by a 46% YoY increase in Data revenues, accounting for 45% of total revenue growth, thanks to the growing customer base and the price adjustments effected at the beginning of the year, followed by a 61% YoY hike in International Direct Dialing (IDD) revenues and a 90% YoY surge in Capacity Sales.

• Customer base increased YoY across Mobile, Fixed Broadband, and Fixed Voice by 9%, 8%, and 4%, respectively.

• EBITDA witnessed a 34% YoY increase, reaching EGP 23.5bn with a margin of 40%, in line with our targeted levels.

• Net profit declined by 6% YoY to EGP 8.6bn, with a net profit margin of 15%.

• In-service CapEx reported EGP 12.8bn (22% of sales), while Cash CapEx reported EGP 30.1bn (52% of sales).

• Net debt/EBITDA scored 2.3x in 9M 2024 vs 1.7x in FY 2023, mainly on currency depreciation.

• FCFF enhanced during 9M 2024 compared to H1 2024, recording EGP -5.9bn and EGP 48mn when we exclude the license fees.

Mohamed Nasr, Managing Director and CEO, commented: “Telecom Egypt has once again demonstrated its ability to navigate through a complex and challenging environment. Despite the challenging macroeconomic environment, we have successfully maintained healthy results, underscoring the strength and resilience of our business model.

Our total revenue increased by 39% YoY, reaching EGP 58.4 billion. EBITDA grew by 34% YoY, reaching EGP 23.5 billion and recording a 40% margin, thanks to strong top-line growth and effective cost-optimization measures, which allowed us to maintain margins at targeted levels despite continued inflationary pressures. However, net profit declined by 6% YoY, landing at EGP 8.6 billion, despite the strong operational growth and a 56% increase in our income from VFE, as the 3x YoY higher net finance costs caused by the devaluation of the EGP and the higher interest rates during the period pressured the bottom line.

The Retail segment continues to grow organically, driven by an expanding customer base and the implementation of price adjustments at the start of the year. Data revenue remains the primary growth engine for this segment, reflecting broader global trends. Meanwhile, the Wholesale segment is also performing well. Just this week, we signed long-term, landmark infrastructure service agreements with Vodafone Egypt, with varying maturities up to 2034, worth a total value of EGP 30 billion. These agreements align with our strategic plan to monetize our existing assets and network infrastructure.

Overall, our business remains resilient, and we are optimistic about the future, as macroeconomic conditions begin to stabilize. We are witnessing a stabilization in the exchange rate, a gradual decline in inflation, and a reduction in Federal Reserve interest rates - with local interest rates expected to follow suit in the near future. This stabilization will help enhance our financial performance moving forward. While our cost structure has risen to a new base, it has now largely stabilized, giving us clearer visibility to scale up revenue and enhance margins. On the CapEx front, our investments in subsea cables, fiber optic networks, mobile networks, and the 5G license were essential for our growth and to secure our position in the market. However, we are working tirelessly to optimize next year’s expenditures and achieve healthier cash flow without hindering our revenue growth momentum.

As we approach the end of 2024, we remain focused on delivering innovative solutions and exceptional value to our customers and partners. By continuously enhancing our service portfolio, optimizing expenditures, and strategically monetizing our assets and infrastructure, we are committed to maximizing shareholder returns and driving sustainable growth across our core business lines. With confidence in our ability to achieve our targets, we reaffirm our 2024 guidance and remain dedicated to creating long-term value for our shareholders.”

Building on their long-standing strategic partnership, Telecom Egypt and Vodafone Egypt have signed several landmark service agreements for infrastructure services. These agreements aim to develop Vodafone Egypt’s networks and support its preparations for the rollout of 5G services. The combined total value of these commercial agreements amounts to around EGP 30 billion, to be disbursed over the duration of the agreements, which have varying maturities up to 2034.

These agreements align with Telecom Egypt's strategic plan to monetize its advanced network, which serves as the foundation for delivering 5G services. This further solidifies the company’s role as the nation’s leading telecommunications infrastructure developer and reinforces its position as the top provider of infrastructure, connectivity, and wholesale services to all the other operators in the market, in line with Egypt’s Vision 2030 for digital transformation. The agreements enable Vodafone Egypt, Telecom Egypt’s largest operator client and the owner of the largest mobile market share in Egypt, to leverage Telecom Egypt’s integrated infrastructure and fiber optic network to deliver exceptional services to its customers. Additionally, they also allow Vodafone Egypt to leverage its extensive global expertise in deploying 5G technologies, which it has implemented in over 34 countries worldwide.

The partnership includes extending Telecom Egypt's transmission services agreement with Vodafone Egypt until 2031, securing Vodafone Egypt's current and future expansion. It also includes a four-year agreement for fiber connectivity to Vodafone Egypt's mobile sites. In addition, several other agreements have been signed for virtual fixed voice and internet services, enabling Vodafone Egypt to expand its integrated portfolio of communications services in the Egyptian market and benefit from a range of distinctive value-added services and competitive business offerings.

The agreements were signed by Mohamed Nasr, Managing Director and CHIEF EXECUTIVE OFFICER of Telecom Egypt, and Mohamed Abdallah, Managing Director and CHIEF EXECUTIVE OFFICER of Vodafone Egypt, in the presence of H.E. Dr. Amr Talaat, Minister of Communications and Information Technology, along with several senior executives from both companies.

H.E. Dr. Amr Talaat, Minister of Communications and Information Technology, commented: “The agreements between Telecom Egypt and Vodafone Egypt are a testament to the significant progress made by the telecommunications and information technology sector in Egypt, particularly with the issuance of 5G service licenses to telecom operators. As 5G technology relies on a robust fiber optic network to connect supporting towers, these agreements serve as the cornerstone for the 5G rollout, enabling both companies to work together to deliver enhanced services to citizens. It is also important to highlight the considerable efforts made in recent years to strengthen mobile network infrastructure.

Earlier this year, mobile operators in Egypt were granted licenses for 5G services, with an investment of USD 675 million. Additionally, the number of mobile towers has doubled over the past five years, reaching over 36,000 towers nationwide. Over the past two years, more than EGP 8.8 billion has been invested—equally shared between the four mobile operators and the National Telecommunications Regulatory Authority—to expand the network of mobile towers in the villages of the ‘Haya Karima’ initiative. The mobile network coverage for all phases of this project is expected to be completed by the end of the first quarter of next year.”

Mohamed Abdallah, Chief Executive Officer of Vodafone Egypt, commented: “We are pleased to sign this important strategic partnership with Telecom Egypt, making Vodafone Egypt one of the largest infrastructure investors in the country. This partnership reflects our commitment to leveraging the latest technological solutions that will enable us to provide high-quality services to our customers in Egypt. It also underscores our efforts to continue investing in the development of network infrastructure and the deployment of high-speed fiber optics. This is part of our ambitious vision, following our recent acquisition of the 5G services license with an investment exceeding USD 150 million. We are now on the verge of a new phase and are fully equipped to offer the best services with the highest quality standards. We are committed to achieving successive accomplishments that meet our customers' expectations and support our vision of leading Egypt’s digital transformation, in line with Egypt’s Vision 2030."

Mohamed Nasr, Managing Director and Chief Executive Officer of Telecom Egypt, commented: "We are thrilled to strengthen our strategic partnership with one of our largest customers, Vodafone Egypt, by providing the infrastructure that will enable it to enhance its services and roll out 5G technologies. Telecom Egypt remains steadfast in its commitment to advancing the telecommunications sector in Egypt, leveraging its technical expertise and state-of-the-art infrastructure to support this goal. We are committed to driving Egypt's digital transformation and shaping a better future for telecommunications services, in line with the rapid global advancements in the telecommunications and information technology sector."

Telecom Egypt, the total telecom operator in Egypt and one of the largest subsea cables operators in the region, and Alcatel Submarine Networks (ASN) have announced the successful landing of the Africa-1 subsea cable system in Egypt at the Ras Ghareb cable landing station on the Red Sea. This is the first of two planned landings in Egypt - the second Egypt landing will be on its Mediterranean coast. Built and deployed by ASN, the system links East Africa with the Middle East, South-Central Asia, and Europe.

Traversing Egypt via diverse terrestrial routes, this low-latency, high-capacity, direct express system extends from Pakistan to France, with initial landings in the United Arab Emirates, Kenya, Djibouti, Yemen, Sudan, Saudi Arabia, Egypt, and Algeria. The Ras Ghareb landing is the third, following earlier landings in Karachi, Pakistan, and Mombasa, Kenya.

The consortium-funded system, stretching over 10,000 kilometers with 8 fiber pairs, aims to enhance global connectivity by providing diversity and resiliency while significantly bolstering broadband traffic capacity. The Africa-1 consortium comprises eight major players: Algerie Telecom, e&, G42, Mobily, Pakistan Telecommunications Company Ltd., Telecom Egypt, TeleYemen, and ZOI

Mohamed Nasr, Managing Director and Chief Executive Officer of Telecom Egypt, commented: “Partnering with the Africa-1 consortium to build this transformative subsea system is a significant milestone for all parties involved, as well as for the global economy and connectivity. By making additional subsea routes available in the growing markets of the Middle East, Asia, and Africa, this system will boost broadband capabilities and expand our subsea network to meet the rising demand for reliable, high-speed communications, especially for bandwidth-intensive applications such as artificial intelligence. Africa-1 further enhances Egypt’s position as a regional connectivity hub and helps bridge the digital divide in underserved regions. Our rich subsea infrastructure, available to our partners worldwide, underscores our commitment to delivering superior connectivity solutions that enable both our partners and end-users alike, driving economic growth across continents, fostering innovation, and providing robust connectivity solutions. We look forward to the operational launch of Africa-1 and the continued expansion of our subsea network to meet the ever-growing demand for seamless global communications.”

Paul Gabla, Chief Sales and Marketing Officer of ASN at Alcatel, commented: “We are excited to be part of the Africa-1 subsea cable system, a pivotal project that will be a real game-changer by transforming connectivity across East Africa, the Middle East, South-Central Asia, and Europe. ASN is committed to bringing the most advanced technologies and extensive expertise to ensure the seamless deployment and operation of this high-capacity, low-latency infrastructure. This initiative not only enhances broadband traffic capacity but also provides the diversity and resiliency needed to support the ever-growing demands of global data transmission.”

Mobily, a leading Technology, Media, and Telecom (TMT) company in the Kingdom of Saudi Arabia, and Telecom Egypt, the total telecom operator in Egypt and one of the largest subsea cables’ operators in the region, have signed a cooperation agreement to land the first Saudi submarine cable linking Saudi Arabia and Egypt. The new cable, which is wholly owned by Mobily, will pass through the Red Sea, connecting Saudi Arabia and Egypt and opening the way for expansion and access to Europe through various connectivity options.

The new subsea cable expands the company's network of subsea cable systems and extensive international infrastructure to provide more reliable connectivity, handle increasing telecom traffic, and meet the growing demand for internet services locally and internationally.

The new cable will land at two cable landing stations along the Red Sea: Sharm El Sheikh in Egypt and Duba in Saudi Arabia. This cable will enable Mobily to connect the Arabian Gulf and Saudi Arabia’s neighboring countries to the Egyptian landing station in the Red Sea through Mobily’s digital corridors. Additionally, the cable will provide connections to various subsea cable systems landing in Egypt.

This agreement is part of Mobily's strategy to expand its extensive infrastructure and network. The new cable builds on the company's previous investments in subsea cables, which link it to various regions around the world, further enhancing Mobily's international capacity.

Salman Bin Abdulaziz Al-Badran, Chief Executive Officer of Mobily, commented: “The new cable represents a significant milestone in strengthening Saudi Arabia's position as a leading international hub for telecommunications services and data traffic, in alignment with the goals of Saudi Vision 2030. The signing of the agreement underscores our commitment to expanding our infrastructure and enhancing our capabilities both regionally and internationally, as Mobily's new cable will connect Saudi Arabia to Egypt and improve communication flexibility between the Middle East and Europe. I am pleased with our cooperation with Telecom Egypt, which will enable us to offer the best services to all our customers around the world.”

Mohamed Nasr, Managing Director and Chief Executive Officer of Telecom Egypt, commented: “We are pleased to collaborate with Mobily, a renowned telecommunications player in the region, to connect communities throughout their extended network. This agreement marks a significant milestone in our collaboration with Mobily, advancing our joint ambitious plans and connecting major regional hubs such as Egypt and Saudi Arabia. Complementing the newly established landing station in Sharm El Sheikh, we are developing new crossing routes to connect Sharm El Sheikh to the Mediterranean Sea. Telecom Egypt is dedicated to advancing the international telecommunications infrastructure by enhancing the geographical diversity of the global subsea cable networks. We are confident that this commercial agreement will be a valuable addition to our ongoing efforts to support this critical sector and cater to the rising demand for capacity and connectivity.” Mobily remains dedicated to expanding its local and international subsea network infrastructure by enhancing capacity and extending its global reach through new partnerships. This commitment aims to deliver cutting-edge digital solutions to its customers and support the sustainable growth of the Kingdom's ICT sector through advanced infrastructure."

Telecom Egypt is pleased to announce the successful signing of an EGP 18bn syndicated loan facility, a crucial step in rebalancing the company’s cash flow and enhancing its financial flexibility.

The syndicate consists of 13 banks, led by Commercial International Bank – Egypt (CIB) and Banque Misr as Initial Mandated Lead Arrangers and Bookrunners, along with the National Bank of Egypt as Mandated Lead Arranger and Bookrunner.

Telecom Egypt will use this new seven-year syndicated facility to refinance its existing short-term EGP facilities. The refinancing comes at a strategic juncture, aligning with Telecom Egypt’s ongoing efforts to improve its cash flow, ensure adequate liquidity, and enhance financial flexibility as the company executes its long-term growth plans.

This facility also underscores Telecom Egypt’s commitment to prudent financial management and reinforces its ability to navigate challenging market conditions while reducing associated risks and ensuring sustainable growth.

Mohamed Nasr, Managing Director and Chief Executive Officer of Telecom Egypt, commented: "The timely refinancing of our short-term EGP debt into a new facility with attractive terms is a significant milestone in strengthening our financial position. We are pleased to have secured this long-term facility, which not only provides us with greater financial flexibility but also enables us to better align our liabilities with our income. We are confident that our ongoing debt restructuring program, which we initiated last May—coupled with our focused efforts to optimize CapEx allocation—positions us well to further enhance our financial position, capitalize on future opportunities, and continue to deliver value to our shareholders. The participation of leading banks in this transaction reflects their strong confidence in Telecom Egypt's financial stability and growth prospects, further validating our strategic direction and long-term vision."

Hisham Okasha, Chief Executive Officer of Banque Misr, commented: "Banque Misr is committed to supporting and financing various business sectors, positively impacting the Egyptian economy. Its entry into this syndicate underscores its belief in the information and communications technology sector’s potential and in Telecom Egypt’s leadership in this thriving field. The bank is dedicated to advancing all economic sectors by promoting development and financing national projects. Additionally, I would like to thank the teams involved in the syndicate for their professionalism and for facilitating joint financing procedures, which were crucial to successfully and efficiently completing this financing in its various stages.”

Amr El-Ganainy, Deputy Chief Executive Officer and Managing Director of CIB, commented: "We are proud of CIB’s role as the Mandated Lead Arranger, Bookrunner, and Facility Agent for this syndicated loan to one of Egypt’s largest and leading telecommunications companies – and a cornerstone in the advancement of the country’s information and communications technology sector. CIB’s primary focus is to support and finance crucial sectors that serve as key drivers for the broader economy. The information and communications technology sector is one of the fastest-growing in the world, particularly in Egypt, which is undergoing a significant digital transformation to improve service quality and accelerate the shift to a digital economy. This financing will not only strengthen Telecom Egypt’s infrastructure and technological capabilities but will also have a positive impact on the entire economy by creating new employment opportunities and enhancing our competitive edge in the region."

Mohamed El-Etreby, Chief Executive Officer of National Bank of Egypt, commented: "The bank is always keen to play a pivotal role in syndicating financing for key infrastructure projects, particularly in the information and communications technology sector, which is main pillar in building a sustainable digital economy, advancing financial inclusion, and reinforcing Egypt's regional and international position as a hub for information technology, knowledge, and innovation. This, in turn, contributes to achieving Egypt's Sustainable Development Goals and Vision 2030. We are pleased with the fruitful collaboration between the banking consortium and Telecom Egypt in arranging this syndicated financing, which enhances the company's liquidity management and provides flexibility in meeting its operational expenses. This facility underscores the banking sector's capacity to deliver effective financing solutions that support companies to grow their businesses."

The champions of the "WE INNOVATE" initiative succeeded in securing first and third places in the Arab Cybersecurity Challenge held on the sidelines of GITEX North Star, competing against 11 Arab teams. This achievement reflects the outstanding excellence of Egyptian youth in the field of cybersecurity.

The two winning teams had participated as part of six teams representing the Egyptian pavilion at GITEX North Star, supported by the "WE INNOVATE" initiative. This underscores the initiative’s strong commitment to enhancing cybersecurity capabilities in the Arab region and its continuous efforts to develop innovative solutions capable of addressing increasing cyber threats. The participating teams and companies received strategic support from Telecom Egypt and the National Computer Emergency Readiness Team (EG-CERT), ensuring their presence at this premier event and providing them with opportunities to attract international investments and expand their operations.

The WE INNOVATE initiative serves as a vital platform for supporting startups in the field of cybersecurity, offering them the chance to showcase their solutions and products to global investors and industry leaders while exploring new horizons. This fosters technological innovation, strengthens Egypt’s position as a regional and global leader in technology and cybersecurity, and reinforces its role as a pioneering hub in this field.

The participation of WE INNOVATE in GITEX Dubai this year underscores Egypt’s ongoing commitment to developing the cybersecurity sector and supporting digital innovation. By empowering startups and providing platforms for competition among innovators, the initiative also enhances Egypt’s position as a regional and global leader in technology and cybersecurity. It is noteworthy that the WE INNOVATE initiative was launched through a cooperation protocol between Telecom Egypt and NTRA. via EG-CERT, marking the first collaboration of its kind undertaken by Telecom Egypt.

H1 2024 key highlights

• Consolidated revenue grew 35% YoY, recording EGP 38.0bn. This growth was fueled by a 46% YoY hike in Data revenue across the Retail segment, constituting 48% of top-line growth, followed by International Direct Dialing (IDD) and Capacity Sales revenues growing by 51% and 103%, respectively.

• Customer base grew across all segments. Fixed Voice and Fixed Broadband subscribers both grew by 8% YoY, while Mobile subscribers increased by 4% YoY

• EBITDA reached EGP 15.5bn, increasing 29% YoY and recording a margin of 41%. The enhanced revenue mix, along with cost optimization efforts, maintained the EBITDA margin at targeted levels despite the prevailing inflationary pressures

• Net profit landed at EGP 6.5bn, almost flat YoY, with an implied margin of 17%. The solid operational growth and the substantial 52% YoY growth in VFE’s income, supported by the recent price ups, managed to neutralize the pressure of a 2.6x higher interest expense YoY and the EGP 0.5bn FX losses due to the currency devaluation.

• In-service CapEx recorded EGP 8.0bn (representing 21% of sales), while Cash CapEx reached EGP 27.4bn, representing around 80% of total Cash CapEx budgeted for FY 2024. It is worth noting that the hike witnessed in Cash CapEx was partially caused by foreign currency appreciation, and vendor financing payments, which amounted to EGP 7.5bn in H1 2024, representing 68% of the EGP 10.9bn to be paid throughout FY 2024.

• Net debt/EBITDA marked 2.4x in H1 2024 vs 1.7x in FY 2023, mainly on the currency depreciation.

• FCFF recorded EGP -10.4bn, pressured by the vendor financing payments of EGP 7.5bn in H1 2024 (68% of the budgeted payments throughout FY 2024), in addition to the EGP 6.4bn related to the license. It is worth highlighting that FCFF stands at EGP -958mn when we exclude the license fees and account for the EGP 3.1bn (net of tax) dividends received from VFE in July 2024.

Mohamed Nasr, Managing Director and Chief Executive Officer, commented: “Telecom Egypt's performance in the first half of 2024 exemplifies our resilience in navigating complex macroeconomic challenges, including currency devaluation and inflationary pressures, while sustaining robust growth. Our total revenue for the period surged by 35% YoY, reaching EGP 38.0 billion, underscoring our strong market position and the effectiveness of our diversified service portfolio. Notably, our Retail segment revenue soared by 40% YoY, driven by a 46% increase in Data revenue and expansion across all Retail segments. This growth reflects our competitive edge and dedication to delivering exceptional value to our customers. Furthermore, our international operations, including ICA and IC&N, achieved remarkable annual growth of 58% and 28%, respectively, benefiting from foreign currency appreciation and higher traffic volumes. Despite the impact of inflation on rising costs, our EBITDA reached EGP 15.5 billion, with a margin of 41%, highlighting our adept cost management, effective infrastructure monetization, strategic price adjustments, in addition to leveraging the continuously growing data market locally and internationally, which is considered one of the principle drivers for the company’s revenue growth."

Our Cash CapEx for the period amounted to EGP 27.4 billion. This increase is largely attributed to EGP 7.5 billion in vendor financing payments, which represent 68% of the budgeted amount for the whole year, and EGP 6.4 billion in license payments. This means that a significant portion of our CapEx for the year has already been expended in the first half. Although our Free Cash Flow to Firm (FCFF) recorded EGP -10.4 billion, excluding license fees and factoring in the EGP 3.1 billion in dividends received from VFE in July 2024, FCFF stands at EGP -958 million. Moving forward, we remain committed to optimizing future CapEx while ensuring that our business growth remains unhindered.

Our vision for Telecom Egypt is to establish ourselves as a leading regional data hub and drive growth across all business fronts. We are focused on enhancing the customer experience, maximizing the value of our infrastructure and assets, and delivering superior returns for our shareholders. As we look ahead, we are optimistic about the company's future and believe that macroeconomic stability will positively influence our financial position. We are confident that our strategic growth initiatives, resilient business model, and agile execution will continue to position us for sustained success and growth.”

Telecom Egypt, Egypt’s market-leading telecom operator, announces that it has signed a multi-year agreement with Mada Communications (Mada®), a leading telecoms solutions provider, to be its preferred strategic international SMS service provider.

After a rigorous selection process, Telecom Egypt has proudly selected Mada® as its strategic partner. This decision was driven by Mada®'s extensive expertise, solid partnerships with both local and international institutions, and robust security and protection measures. Additionally, Mada®'s exceptional platform adaptability and seamless compatibility with Telecom Egypt’s existing systems were pivotal factors in this selection.

Mada® will spearhead the management for all International Application-to-Person (A2P) messaging services, including but not limited to functionalities such as two-factor authentication and automated notifications. The partnership enables Telecom Egypt to leverage Mada®’s capabilities in order to deliver a superior experience to its growing customer base while simultaneously maximizing A2P messaging revenues.

Mohamed Nasr, Managing Director and Chief Executive Officer of Telecom Egypt, commented:“This strategic partnership is a natural extension of our long-term successful business relationship with Mada®, the global leader in voice services. In addition, given Mada®’s extensive expertise as the leading A2P provider in the MENA region, this joint cooperation reinforces our commitment to promoting unorthodox business practices and expanding our business scope, which will contribute to achieving sustainable revenue growth and delivering added value to our customers through integrated, secure and effective communication solutions.”

Charles Hage, Chief Executive Officer of Mada®, commented: "We are thrilled and honored to be selected as the preferred carrier for Telecom Egypt's A2P messages. Being chosen by such a major player in the industry is a testament to our commitment to excellence and innovation. A special thanks to both the Telecom Egypt and Mada® teams for their hard work and dedication in making this partnership possible. We look forward to furthering our cooperation with Telecom Egypt across multiple fronts and bringing exceptional value to their messaging services."

Telecom Egypt|WE, the leading company in communications and information technology services in Egypt, has signed a cooperation agreement with Elsewedy Industrial Development to provide integrated communications services and smart city solutions in Sokhna City 360, located in the Suez Canal Economic Zone. The agreement was signed by Eng. Mohamed Nasr, Managing Director and CEO of Telecom Egypt, and Eng. Mohamed El Qamah, CEO of Elsewedy Electric for Infrastructure Investments, in the presence of Eng. Ahmed Elsewedy, CEO and Managing Director of Elsewedy Electric.

Under this agreement, Telecom Egypt| WE will implement the technological infrastructure for Sokhna City 360, extend the fiber-optic network required to provide high-speed internet, deliver smart city services, and supply all integrated communications services for the project. The company will also establish telecommunications towers and mobile signal-boosting stations, and implement a smart nodes network within the project.

Eng. Mohamed Nasr, Managing Director and CEO of Telecom Egypt, said: "Telecom Egypt possesses a distinguished infrastructure and extensive technical expertise, enabling it to deliver the highest standards of telecommunications services that keep pace with the evolving needs of customers. This has positioned the company as a strategic partner for leading real estate development and economic development companies seeking to provide integrated telecommunications services and advanced smart solutions in their projects, in line with rapid technological advancements, contributing to driving industrial development in Egypt in accordance with sustainable development plans and strategies.”

Eng. Ahmed Elsewedy, CEO and Managing Director of Elsewedy Electric, expressed his pleasure with this distinguished partnership, which comes as a result of the long-standing success and fruitful cooperation between the two entities, Elsewedy Electric and Telecom Egypt., “This partnership has demonstrated our ability to achieve excellence and innovation across our various fields, and we look forward to moving ahead toward further joint achievements.” He added.

Eng. Mohamed El-Qamah, CEO of Elsewedy Electric Infrastructure Investments, said: "We are committed to providing advanced solutions that meet the needs of our customers. Therefore, we are proud to cooperate with Telecom Egypt. This strategic partnership will enable us to provide a smart and integrated industrial environment in Sokhna City 360, which supports the growth of industrial companies and encourages investment in the region." In addition, it will help industrial companies adopt Fourth Industrial Revolution technologies, such as the Internet of Things, artificial intelligence, and 5G networks. This, in turn, will enable them to enhance their operations, make better-informed decisions, and reduce operational costs, thereby strengthening their competitiveness in global markets and contributing to the achievement of sustainable development goals.

For his part, Mr. Mohamed Abu Taleb, CCO at Telecom Egypt, said: "We are pleased with the growing confidence that Telecom Egypt gains every day from leading real estate development and industrial development companies, which asserts our ability to deliver the highest level of smart and integrated solutions

He added, “Telecom Egypt places the satisfaction of personal and business customers at the top of its priorities and continues to develop and upgrade its infrastructure and technical capabilities to achieve this goal and ensure that customers receive the best possible telecommunications services.”

Telecom Egypt|We launched its new advertising campaign for the summer of 2024, "Agmad Men Ay Had”, which offers its customers some of the strongest packages that meet their evolving needs and ensure they enjoy a special summer through a wide range of attractive offers that enable them to stay connected with relatives and friends throughout the season. The company also shared on its official platforms a promotional advertisement starring artists Tamer Hosni and Bahaa Sultan in a distinctive duet titled “Me’alemeen,” with the participation of actors Caroline Azmy and Darren Haddad.

Through its advertising campaign, which carries the slogan "Agmad Men Ay Had”, Telecom Egypt is offering large prizes and exceptional offers, the strongest of summer 2024. All prepaid and invoiced customers will have the opportunity to win 50 gold bars. Two of the company’s customers will win the grand prizes, with each receiving a half-kilogram gold bar. Weekly draws will be held for the gold bars, while the winners of the grand prizes will be announced at the end of the summer season.

The offers also include prepaid customers receiving 100 times the recharge amount, along with a chance to win gold bars. WE Gold customers will receive double their internet package, while current Control and Nitro package customers will receive a 50% increase in their package value, and new customers will receive double their package. Additionally, WE is offering current fixed-line internet customers 200 GB for free when upgrading to higher packages. The company is also giving WE Pay e-wallet customers a chance to win cash prizes totaling EGP 2 million when they conduct financial transactions during the “Hour of Luck.”

Mohamed Abu Taleb, CCO at Telecom Egypt, said that the company is always keen to remain close to its customers and provide them with the highest level of telecommunications and IT services, ensuring an exceptional communication experience during the summer months, as well as offering the best deals and surprises tailored to all customer segments. He added that Telecom Egypt has succeeded in gaining the trust of more customers through its distinguished and advanced services that keep pace with the rapid technological revolution.

Telecom Egypt, Egypt’s market-leading telecom operator, today announced a new partnership with Nokia to bring 5G technology to Egypt for the first time. The collaboration aims to revolutionize the country's telecom landscape by introducing the transformative power of 5G to cities such as Alexandria, Giza, Luxor, and Aswan. Nokia will provide its comprehensive AirScale portfolio to deliver an exceptional network experience to Telecom Egypt’s customers, including faster data speeds, enhanced performance, and capacity. Deployment will take place later this year.

Under the agreement, Nokia will deploy 5G radio access network (RAN) equipment from its industry-leading AirScale portfolio, comprising baseband units and its latest generation of Massive MIMO radios. These solutions utilize Nokia's energy-efficient ReefShark System-on-Chip technology, delivering extensive 5G capacity and coverage as well as enabling easy deployments. Nokia will also offer a range of professional services, encompassing deployment, integration, and network optimization.

The introduction of 5G technology will bring numerous benefits, including increased capacity for seamless connectivity in some of Egypt’s most densely populated areas. This will support a wide range of applications and services, resulting in faster downloads, smoother streaming, and improved network performance. This advancement will enable unprecedented levels of innovation and efficiency across various sectors, empowering organizations to thrive in today's fast-paced digital landscape.

Earlier this year, Telecom Egypt secured the country's first 5G license, which is valid for a period of 15 years.

Mohamed Al Fowey, CTO of Telecom Egypt, commented: “This new agreement with Nokia further strengthens our strong partnership, reaffirms our commitment to providing cutting-edge digital services and positions us at the forefront of the 5G revolution. Both our consumer and enterprise customers can look forward to enhanced mobile broadband and exciting new applications that leverage the speed and low latency of 5G technology.”

Tommi Uitto, President of Mobile Networks at Nokia, said: “This important 5G contract with Telecom Egypt extends our longstanding partnership. The introduction of 5G services enabled by our extensive portfolio will open exciting new opportunities for people and businesses in Egypt to experience enhanced mobile connectivity. Our collaboration establishes a strong foundation for driving the nation's digital transformation.”

Telecom Egypt, Egypt’s market-leading telecom operator, and 4iG Group, the leading telecommunications and IT group in Hungary and the Western Balkans, signed a Memorandum of Understanding (MoU) to establish a joint venture to build, operate, and commercialize Fiber-To-The-Home (FTTH) and Fiber-To-The-Site (FTTS) fiber access infrastructure on a wholesale basis in Egypt. The joint investment aims to build the most modern fiber network that provides at minimum around six million households access to a state-of-the-art, high-speed network in the future.

According to the agreement inked in Cairo, the proposed joint venture will have invested approximately USD 600 million to be delivered into Egypt's fiber access infrastructure in the coming 10 years. During the months to come after the signing the MoU, 4iG Group and Telecom Egypt will agree on the business model, exact ownership structure, governance processes and technological details of the joint venture.

Mohamed Nasr, CHIEF EXECUTIVE OFFICER of Telecom Egypt, and Gellért Jászai, Chairman of 4iG Group, signed the MoU in the presence of H.E. Prime Minister Dr. Mostafa Madbouly and H.E. Dr. Amr Talaat, Minister of Communications and Information Technology of Egypt, as well as top officials from both companies. The parties signed the preliminary agreement on the second day of the Egypt-EU Investment Conference, inaugurated by the president of Egypt, El Sisi, as well as the EU president, Ursula Von Der Leyen.

This partnership aligns with Telecom Egypt’s plan to transform all areas into FTTH networks under the Ministry of Communications and Information Technology’s “Digital Egypt” strategy, in line with Egypt’s Vision 2030 for a digitally transformed society and a robust digital economy. On the mobile broadband side, connecting Mobile sites with fiber infrastructure will, in turn, empower the mobile networks to satisfy the growing demand for capacity and enable the real deployment of massive 5G rollouts.

Mohamed Nasr, Managing Director and Chief Executive Officer at Telecom Egypt, commented: “We are pleased to partner with 4iG Group. Through this agreement, which will capitalize on our respective strengths in the ICT industry, we will accelerate Egypt's digital transformation thanks to the future-ready network that will ramp up 5G and many other next-generation services such as IoT and enterprise networks. We look forward to this endeavor, which will provide unparalleled performance and future-proof connectivity for generations to come, while ensuring that we maintain our position as one of the leading ICT providers in Egypt.”

Gellért Jászai, Chairman of 4iG Group, following the signing ceremony, added: “This collaboration is another opportunity for 4iG Group to market its expertise internationally in line with its long-term business strategy. We have found the best partner in Telecom Egypt for our ambition, just as we have in the already launched subsea cable project. The combination of the strengths and expertise of the two major companies foresees the success of the Egyptian fiber network development program. It also ensures the application of the latest technologies and innovations, as well as the establishment of high-quality services across the country.”

Telecom Egypt’s efforts and continuous upgrades have bolstered the infrastructure's capacity to accommodate the unparalleled surge in traffic, significantly enhancing Egypt's ongoing digital transformation. In the past six years alone, the country’s internet speeds have increased tenfold.

On the first day of the conference, Mr. Gellert Jászai, Chairman of 4iG, along with a selected group of top leaders from global and European companies and banks, was invited to a private roundtable hosted by the President of Egypt and the President of the EU Commission. During this meeting, the leaders pledged significant investments to support the development of Egypt's economy. Mr. Jászai highlighted 4iG's dedication to enhancing Egypt's digital infrastructure in collaboration with Telecom Egypt. "By aligning our strategic approach with Egypt’s priorities, we believe that improving the digital infrastructure will boost competitiveness and productivity. Through these partnerships, we aim to create jobs, build a skilled workforce that supports local enterprises, and improve the quality of life for Egyptians," Mr. Jászai stated.

Telecom Egypt, the country’s first integrated telecommunications operator, signed a Memorandum of Understanding (MoU) with the Small and Medium Enterprises Development Agency (SMEDA) to support entrepreneurs, business owners, and startups, encouraging them to integrate into the formal economy. The agreement includes providing special packages for mobile lines and fixed internet services, helping businesses enhance their competitiveness in both local and global markets by utilizing modern technological systems.

The MoU was signed by Eng. Mohamed Nasr, Managing Director and CEO of Telecom Egypt, and Mr. Basel Rahmy, CEO of SMEDA.

Under this agreement, Telecom Egypt will offer special mobile and fixed internet packages to small, medium, and micro enterprises that regularize their status with SMEDA. The partnership also aims to enhance the use of ICT within the agency, thereby improving its ability to serve program beneficiaries and providing better opportunities for entrepreneurs and business owners.

Eng. Mohamed Nasr emphasized that this initiative reflects Telecom Egypt’s pivotal role in promoting entrepreneurship, supporting growth, and contributing to development efforts. He noted that the company’s extensive technical expertise enables it to deliver top-tier communications and IT services to businesses and institutions, and that Telecom Egypt is committed to collaborating with all entities supporting entrepreneurs, startups, and business owners, helping them operate in an advanced technological environment.

Mr. Basel Rahmy highlighted SMEDA’s commitment to cooperating with all state institutions to implement government directions aimed at providing comprehensive support to the SME sector to ensure stability, growth, and effective participation in economic development. He added that this collaboration with one of Egypt’s largest telecom companies will provide additional support to startups and existing businesses, encouraging digital transformation and the adoption of modern technology, thereby enhancing productivity and competitiveness both locally and internationally.

Mohamed Abou Taleb, CCO at Telecom Egypt, stated: “Telecom Egypt is always committed to leveraging its technological capabilities and technical expertise to enhance services for all customers, particularly small, medium, and micro enterprises. This initiative will significantly contribute to fostering entrepreneurship and supporting economic development efforts.”

Telecom Egypt, the full-service telecom operator in Egypt and one of the largest subsea cables operators in the region, and SubCom, the global subsea data system supplier, along with the India-Europe-Xpress (IEX) partners, announced the successful completion of IEX Subsea system’s landings in Egypt. The novel subsea system, which lands in Egypt at two cable landing stations -- Zafarana2 on the Red Sea and SidiKerir on the Mediterranean -- connects two seas and two continents over two diversified trans-Egypt terrestrial crossing routes. Upon completion, IEX will directly connect India (Mumbai) to Europe (Milan, Italy), improving diversity along the route and enabling partners to provide their customers with more advanced, high-capacity services to meet the growing global digital demand.

By securing a smooth, speedy and flexible local cycle of permits, approvals and landing related logistics, Telecom Egypt played a significant role in facilitating the landing of this new, significant cable connecting Mumbai to Europe in two major segments; with each segment designed for high-capacity transmission with 13 fiber pairs. Telecom Egypt is providing IEX with landing facilities and support in Egypt, as well as new diverse terrestrial crossings between these facilities. On the other hand, SubCom was selected to engineer, manufacture, and deploy the 10,000km IEX system, which includes their space-division multiplexing (SDM) and Wavelength Selective Switch (WSS) ROADM technology.

Being the nexus between three continents, and thanks to its extensive coastlines on both the Red Sea and the Mediterranean Sea, Egypt is the most reliable and trusted hub connecting Africa, Europe, and Asia. Building on its well-established history in the subsea cable industry and the country’s remarkable geography, Telecom Egypt continues to successfully provide unmatched crossing solutions to the international network of submarine cable systems.

Mohamed Nasr, Managing Director and Chief Executive Officer of Telecom Egypt, commented: “Leveraging its cutting-edge infrastructure, Telecom Egypt played a pivotal role in connecting the IEX subsea cable system terrestrially between the Red Sea and the Mediterranean. By providing landing and crossing services at Zafarana2 and SidiKerir landing stations, and linking them through two novel crossing route diverse from those already used by the current 14 subsea systems crossing Egypt, we are presenting our international partners with unique opportunities via our state-of-the-art, highly reliable services and continuously developed international infrastructure. IEX subsea system is the fifth subsea to land in Egypt over the past decade and the tenth in terms of landings count. In addition, it is the first landing to take place at SidiKerir landing station and the fourth at Zafarana2. Through these important projects, Telecom Egypt aims to diversify its services and consolidate its placement as a main international telecommunications hub in the region. Our mission is to develop our infrastructure in line with the latest technologies and international standards, in addition to providing distinctive, competitive, commercial offerings to our partners and customers both locally and internationally.”

David Coughlan, President and CEO of SubCom, commented: “SubCom is very pleased to play a key role in the deployment of the IEX subsea cable system and to mark this milestone with the IEX consortium and its landing parties. Our team continues to demonstrate that when data-driven organizations require reliability and expertise, SubCom has the capacity and capabilities to transform any project vision into a reality.”

Q1 2024 key highlights

• Consolidated revenue grew 25% YoY to reach EGP 17.5bn, mainly on the back of continued growth in data, which accounted for 62% of total revenue growth, followed by capacity sales and IDD, contributing 17% and 11% to revenue growth, respectively.

• Customer base grew across the board: Fixed voice and broadband up 9% and 8% YoY, respectively, while mobile customers increased by 4% YoY to reach 13mn.

• EBITDA increased 19% YoY, landing at EGP 7.3bn, with a notable 42% margin. This performance underscores the company’s robust organic growth, including the impact of the strategic price adjustments

• Operating profit landed at EGP 3.6bn, down 5% YoY due to 41% higher D&A costs YoY, in addition to provisions recorded during the quarter

• Net profit reported EGP 3.9bn, with a 22% margin, marking a modest 2% increase YoY, as the robust financial performance was partially offset by the 2.2x hike in the interest expense, the 41% YoY increase in D&A, and the flat income from associates, mainly due to the currency devaluation

• FCFF amounted to EGP -4.7bn (EGP 1.6bn excluding mobile licenses CapEx), implying an FCFF/EBITDA ratio of -65%.

• In-service CapEx, excluding the license fee, landed at EGP 1.6bn (representing 9% of revenues), while cash CapEx, including the license fee, reached EGP 15.0bn, recording an 86% cash CapEx to sales ratio.

• Net debt/EBITDA (excluding vendor finance) recorded 2.1x vs. 1.9x in Q4 2023, despite gross debt being inflated by +62% QoQ due to the revaluation of our foreign-currency debt, with no additional debt drawn.

Mohamed Nasr Eldin, Managing Director and Chief Executive Officer, commented:“I’m glad to report the continuation of our growth momentum at the beginning of the year. Our Q1 2024 operational and financial results reflect the resilience of our business in the face of macroeconomic challenges. Our top line increased by 25% YoY, reaching EGP 17.5bn, recording the highest quarterly revenue to date. Our EBITDA grew 19% YoY, amounting to EGP 7.3bn, despite the inflationary pressures.

We remain committed to enhancing our free cash flow in the period ahead through several strategic initiatives, including the phasing out of our CapEx, without humbling the growth momentum we have achieved.

As the year progresses, we will focus on enhancing our cost efficiency and on monetizing our assets, particularly those that generate returns in foreign currency. In addition, we will soon begin to harness the power of our newly awarded 5G license and maximize the impact of our diverse commercial offerings for the advantage of our customers. I can confidently say we are poised for the next phase of growth across all areas of our business. We have many opportunities to pursue and will continue executing our strategy, focusing on our core strengths to better serve our customers, and increase shareholders' value.”

Telecom Egypt, the country’s full-service telecom operator, today signed an agreement to secure a USD 200m medium-term loan from BanqueMisr, UAE.

BanqueMisr, UAE, is the Mandated Lead Arranger and the Facility Agent.

Given the favorable terms and conditions of this new facility, Telecom Egypt will use the loan to refinance its existing short-term facilities. This loan comes at a timely manner as Telecom Egypt pursues a refinancing strategy to reduce its borrowing costs, assure adequate liquidity, and increase its financial flexibility. In 2023, Telecom Egypt strategically procured and settled its CapEX requirements upfront to hedge against expected FX fluctuations in 2024 and other unforeseeable risks.

It is also worth highlighting that this five-year amortizing loan will be settled from the collection of Telecom Egypt’s foreign currency revenues.

Mohamed Nasr, Managing Director and Chief Executive Officer at Telecom Egypt, commented:“We are pleased to be cooperating with BanqueMisr, UAE for this financing facility. This new USD 200m medium-term loan facility is a testament to the confidence of respected financial institutions, such as BanqueMisr, in Telecom Egypt’s strong operations. This loan will complement our existing liquidity base and enable us to repay installments in line with the cash flow generation from our different foreign currency revenue streams. In addition, we are confident that our solid financial and operational plans will deliver exceptional results and continued organic growth, allowing us greater cash flow flexibility, continued product development, enhanced service to all of our customers, and propel our future business growth.”

Khaled El Bialy, Chief Executive Officer at Bank Misr, UAE, stated:“We are delighted to support Telecom Egypt in their pursuit of better financial management and cash flow flexibility. This finance facility cements our strategic relationship with TE and reflects BanqueMisr’s commitment to a long-term partnership with the company.”

In a significant step towards accelerating Egypt's digital transformation strategy, Telecom Egypt, a leading communications and information technology service provider, and Huawei Cloud have successfully joined forces to launch Huawei’s first locally based public cloud platform in Egypt and Northern Africa. This launch aligns perfectly with Telecom Egypt’s strategy to position Egypt as the premium regional digital hub, promoting the development of cloud computing and digital services, and underscores Telecom Egypt’s and Huawei's commitment to enabling Egypt’s transformation in the digital era.

Hosting Huawei Cloud in Telecom Egypt's data centers ensures seamless reachability to more than 60 countries around the globe, capitalizing on more than 14 submarine cable systems, which are set to increase to 18 cable systems by 2025, in addition to the massive national reach of enterprises and SMEs in Egypt.

Beyond hosting, Telecom Egypt is leveraging its extensive network and expertise to seamlessly integrate Huawei Cloud solutions with existing infrastructure. This ensures a smooth transition to the cloud and unlocks the full potential of these advanced services.

Furthermore, Huawei Cloud offers comprehensive scenario-based solutions and extensive professional services (over 240+, covering cloud construction, migration, utilization, and management) to cater to evolving business needs in Egypt, allowing users to focus on business innovation while benefiting from a secure and reliable cloud environment.

For over two decades, Huawei has built a strong presence in the Middle East and Africa. By introducing Huawei Cloud, Telecom Egypt and Huawei are showcasing their commitment to delivering cutting-edge technologies and services that cater to the evolving needs of the market, allowing businesses across various industries, such as e-commerce, live streaming, sharing economy, and more, to have access to advanced, reliable, and secure cloud solutions, empowering them to drive innovation and achieve sustainable growth. Additionally, launching the cloud is expected to generate a multitude of job opportunities for youth in Egypt and many countries in North, West, and Central Africa.

Mohamed Nasr, Managing Director, and Chief Executive Officer at Telecom Egypt, commented:“We are thrilled to host Huawei Cloud in Telecom Egypt’s state-of-the-art, Tier III certified data center located in the Smart Village Campus, which is connected to EG-IX, an open access internet exchange platform, and a fully meshed subsea and terrestrial network that connects Huawei Cloud to the globe.

This cooperation represents a significant milestone in our commitment to empowering businesses with cutting-edge technologies, as Telecom Egypt’s hosting services will enable access to all networks in Egypt, supporting businesses and contributing to Telecom Egypt’s vision of becoming a thriving global digital hub through its associated eco-system.”

Mr. Jim Liu, Chief Executive Officer at Huawei Egypt, commented:"The introduction of Huawei Cloud in Egypt signifies a remarkable shift, as it strives to establish a strong basis for industry digitalization, enabling numerous sectors to benefit from advanced intelligent engines. Additionally, our longstanding partnership with Telecom Egypt embodies our unwavering dedication to bringing cutting-edge technologies and services to Egypt, with a shared commitment to making the world a better place. Through collaborating with our valued partners, our collective mission is to accelerate the intelligent era, ensuring its success in a rapidly evolving digital landscape."

It is worth mentioning that over the past four years, Huawei Cloud has focused on delivering advanced cloud services, providing local support, and fostering an open collaborative ecosystem. Its value proposition, known as "Three-building, Seven-operating, Safer Migration to the Cloud," is based on comprehensive disaster recovery plans, a robust 1+7-layer cloud-native security architecture, the Security Cloud Brain, and an intelligent cloud management architecture supporting up to Level 5 VDC management. These measures ensure a highly reliable, ultra-secure, and efficient cloud service experience for users, allowing Huawei Cloud, with its partners, to continue working actively to achieve even greater results, making a significant impact across various industries and shaping the future of the digital era.

Telecom Egypt | WE signed a cooperation protocol with "Cred Developments" to provide integrated communications and smart city services for its real estate projects. The protocol was signed by Mr. Mohamed Abu Taleb, CCO of Telecom Egypt, and Eng. Ahmed Mansour, CEO of "Cred."

Under this protocol, Telecom Egypt will implement all technological infrastructure for "Cred" projects and extend the fiber-optic networks necessary to provide internet and voice services to all residential, administrative, and commercial units in accordance with the latest advanced FTTH communications technologies to deliver a full range of integrated communications services, including landline phone, high-speed internet, IPTV, and other smart city services such as surveillance cameras, smart gates, and more.

Mr. Mohamed Abu Taleb, CCO of Telecom Egypt, said: “Telecom Egypt enjoys great trust from major real estate development companies, making it the technological partner for over 90% of the country’s major real estate projects, thanks to its advanced infrastructure that ensures customers of these companies enjoy the latest communications services tailored to their evolving needs.” He added, “We are committed to ensuring customer satisfaction and expanding the provision of advanced smart city services that keep pace with the rapid development in communications technology.”

For his part, Eng. Ahmed Mansour, CEO of Cred, said: “This cooperation reflects our clear vision of presenting a new concept of living and helping our customers enjoy a more comfortable and luxurious life by offering innovative solutions that provide an exceptional lifestyle experience in line with the modern lifestyle we always strive for.” He added, “Through our cooperation with a major entity like Telecom Egypt, we aim to provide our customers with the highest level of communications and smart city services, which have become an integral part of future lifestyles.”

The first Arab Military Equestrian Championship, featuring show jumping and tent pegging, will kick off under the sponsorship of Telecom Egypt |WE. The event will be held at the Armed Forces Equestrian Club in the International Olympic City of the New Administrative Capital from 24 to 27 April 2024, coinciding with Egypt’s celebrations of the 42ndAnniversary of the Liberation of Sinai.

Telecom Egypt |WE’s sponsorship reflects its ongoing commitment as a national entity to supporting major events that enhance Egypt’s position on the regional and international stage. It also demonstrates the company’s dedication to promoting sports and athletes, reinforcing its belief in the importance of youth development and investment in human capital as a key pillar for the future.

Mohamed Abu Taleb, CCO of Telecom Egypt |WE, said: “We are proud to sponsor this important championship in its inaugural edition, highlighting Telecom Egypt |WE’s continued role in supporting sports events that raise Egypt’s profile globally.”

He added: “We look forward to further cooperation in the future to ensure greater focus on youth, sports, and investment in human capital.” The championship will kick off with the participation of11 Arab countries and will run alongside the Equestrian Forum in Egypt, which brings together international and local experts to discuss the development of equestrian sports and exchange expertise. The event also coincides with the Youth League Finals and the National Equestrian Championship, organized in collaboration with the Egyptian Equestrian Federation.

The International Collegiate Programming Contest (ICPC) concludes today, hosted in Egypt for the first time, with competitions held in Luxor Governorate from 15 to 18 April 2024. The event is sponsored by Telecom Egypt | WE and organized by the Arab Academy for Science, Technology, and Maritime Transport. It is recognized as the most prominent and significant competition in software programming for university students worldwide.

This year’s contest features over 2,500 young talents from 111 countries, including students, faculty members, university presidents, and executives from leading global software companies. The ICPC is considered one of the key events hosted in Egypt this year, bringing together some of the most globally outstanding young programmers to compete for the championship title.

The International Collegiate Programming Contest (ICPC), held annually since 1977, is the oldest and largest university-level programming competition in the world. Nearly 75,000 students from 111 countries participate each year, with multiple qualification stages leading to the final competition.

Telecom Egypt CEO, Eng. Mohamed Nasr commented: “Participating in this international competition is a fantastic opportunity for university students from around the world to exchange experiences and strengthen scientific and technological collaboration. Telecom Egypt | WE’s sponsorship of this contest aligns with our strategy to support and empower youth, whether by providing educational and training opportunities or creating an encouraging and stimulating environment for creativity and innovation. This approach helps foster a new generation capable of driving sustainable growth and economic development.”

Today, Telecom Egypt, Egypt’s first integrated telecom operator and one of the largest subsea cable operators in the region, and EXA Infrastructure, a leading European fiber backbone and transatlantic subsea cable infrastructure provider, announced their partnership to reshape East-to-West traffic flows entering the Mediterranean, and reinforce Egypt's role as a pivotal hub for global telecommunications. At a signing ceremony, executives from Telecom Egypt and EXA Infrastructure expressed their commitment to launch a new era of cooperation that will see them work more closely together to support digital infrastructure initiatives.

Telecom Egypt Managing Director and Chief Executive Officer, Mohamed Nasr, and EXA Infrastructure Executive Chairman, Nick Read, signed the partnership agreement in Cairo, Egypt, in the presence of H.E. Dr. Amr Talaat, Minister of Communications and Information Technology of Egypt, as well as top officials from both companies.

Through this partnership, EXA Infrastructure becomes a one-stop-shop for traffic from the Middle East and Asia into Europe, uniquely combining multi-route solutions, while providing protected capacity solutions from Egypt – via Telecom Egypt’s robust infrastructure and cutting-edge model, ‘WeConnect’ – to hundreds of endpoints in Europe and North America.

In September 2023, Telecom Egypt unveiled ‘WeConnect’, a unique ecosystem offering agile access to Egypt's extensive subsea cable infrastructure. WeConnect enables users to seamlessly navigate connectivity between subsea cable systems in the Mediterranean and the Red Sea, fostering an open and neutral model. As part of the partnership, EXA Infrastructure will serve as the European and North American-based service provider to access WeConnect.

With its extensive international transit international infrastructure, Telecom Egypt plays a pivotal role as the enabler of more than 90% of the international Eurasian traffic, accounting for more than 200Tbps of international traffic across Egypt. The company is actively expanding its international infrastructure by establishing new landing stations on the Mediterranean and Red Sea coasts, which are connected via diverse terrestrial and subsea routes. This partnership is another step in the strategy to position Egypt as the main gateway to Asia, Africa, and Europe, and as an emerging intercontinental interconnection hub.

Dr. Amr Talaat, Minister of Communications and Information Technology, commented:“This agreement is an important milestone in the series of partnerships forged with major international telecommunications service providers to expand the reach of the international digital infrastructure globally, keeping pace with the growing demand for Internet services worldwide and in line with the government's strategy to position Egypt as a global digital corridor for data. The Ministry of Communications and Information Technology is keen to maintain Egypt's distinctive edge in the field of international subsea cables infrastructure, capitalizing on its unparalleled geographical location as a unique hub for submarine cables worldwide.”

Mohamed Nasr, Managing Director and CEO at Telecom Egypt, commented: Today, we are collaborating with EXA Infrastructure, enabling our customers to pick their traffic from Egypt to any point of presence (PoP) in Europe via Telecom Egypt’s Mediterranean cable landing stations. Through this strategic partnership, Telecom Egypt avails a unique experience to global networks and dedicates its capabilities to serve the growing demand for international connectivity coming from the Far East and Africa. Using WeConnect ecosystem, 19 subsea systems can easily and seamlessly scale up and extend their reach to major PoPs in Europe, hopping on EXA Infrastructure’s well-established network.”

Nick Read, Executive Chairman at EXA Infrastructure, added: “We are excited to embark on this new partnership with Telecom Egypt. Partnerships are a cornerstone of how this industry will scale to support the huge growth in data traffic in the coming years. This partnership brings together Telecom Egypt’s formidable role as a hub for traffic from the Middle East and Asia, and EXA Infrastructure’s critical role in providing modern infrastructure and multiple routes via an expansive network, into and around Europe.”

Telecom Egypt has launched the WE Business Summit, an event organized to showcase the latest technological solutions and services tailored for enterprises and corporates. This initiative reflects the company’s commitment to keeping pace with its customers’ evolving expectations and addressing their advanced needs by providing services that enhance operational efficiency, boost productivity, strengthen competitiveness, and support their digital transformation journey.

During the event, Telecom Egypt |WE offers a wide range of advanced services designed to meet the needs of various segments of enterprises across Egypt. Key offerings include Internet of Things (IoT), cloud-based Enterprise Resource Planning (ERP) solutions, a Digital Fintech Services Platform, andInteractive Digital IPTV services.

The IoT solutions include smart access control, smart parking, smart street lighting, smart irrigation systems, smart waste management, smart meters, surveillance cameras, and other services that support enterprises and organizations by enhancing operational efficiency, managing and analyzing operations, and securely transmitting information. In addition, the cloud-based ERP solutions provided by Telecom Egypt |WE enable enterprises to access their applications anytime and anywhere with ease, supporting scalability and innovation. The Digital Fintech Platform also enables organizations to access and manage their financial resources and conduct various financial transactions digitally and seamlessly.

On the sidelines of the summit, several agreements were signed between Telecom Egypt |WE and many enterprises seeking to develop their businesses through the technological and digital services provided by Telecom Egypt. These include PayTabs Egypt for Technology Solutions, Corporate Stack Solutions, IoT Egypt, Software AG, Elsewedy, City Edge Developments, Misr for Information and Trading Services (MIST), Nile Radiology Center, Aman, and I Concept.

Eng. Mohamed Nasr, CEO of Telecom Egypt, stated: “Telecom Egypt, as the first integrated telecom operator in Egypt, is keen to offer the most advanced telecommunications and technology solutions to its enterprise and corporate customers, supporting them in developing their businesses in line with the rapid pace of technological advancement we are witnessing today.”

He added: “Telecom Egypt has a robust infrastructure that enables it to deliver digital services and platforms tailored to the diverse needs of enterprises and companies across different sectors and business models, and we look forward to gaining the trust of more enterprise and corporate customers in the coming period.”

For his part, Mohamed AbouTaleb, CCO at Telecom Egypt, said: “Telecom Egypt has demonstrated its ability to lead the integrated telecommunications market in Egypt through providing advanced and best-in-class services and solutions, ensuring that customers keep pace with rapid technological developments and maintain their competitive edge. We were keen to be the first provider of 5G services in Egypt, and we were also the first to introduce 4G services in the Egyptian market in 2017.” He added: “I am pleased with the growing confidence that enterprises and institutions place in Telecom Egypt, as well as the increasing demand for the advanced technological solutions provided by ‘WE’, which align with the fast-evolving telecommunications and information technology landscape.”

FY 2023 key highlights

• Consolidated revenue increased 28% YoY reaching EGP 56.7bn, with data being the largest contributor with 18% YoY growth, followed by infrastructure, IDD and cable projects growth of 27%, 76%, and 64%, respectively.

• Customer base for fixed voice and broadband grew 8% and 9% YoY, respectively, while mobile customer base was stable YoY.

• EBITDA up 30% YoY, marking a robust 40% margin to record EGP 22.7bn - just ahead of management's guidance. This was mainly driven by strong operational results and savings from the new national roaming agreement, which offset rising costs due to inflation.

• Operating profit increased 28% YoY on higher operating performance, offsetting 27% higher direct costs.

• Net profit increased by 25% YoY to reach EGP 11.5bn.

• In-service capex landed at EGP 20.3bn (representing 36% of revenue). Cash capex, including license fees, reached EGP 26.4bn. It is worth mentioning that the cash CapEX includes around EGP 2bn for NUCA, Hayat Karima and digitization projects, which the government finances.

• Net operating cash flow landed at EGP 17.0bn. Meanwhile, FCFF reached a negative EGP 3.6bn, mostly as a result of expediting vendor payments to meet CapEx requirements and protect against anticipated FX volatility.

• Net debt/EBITDA reached 1.7x vs. 1.4x in FY 2022 due to currency devaluation, as 66% of the debt is foreign currency denominated.

• Dividend distribution proposed by the BoD is EGP 1.5/share.

Mohamed Nasr, Managing Director and CEO, commented:"2023 was a very strong year for Telecom Egypt. Consolidated revenue in Q4 amounted to EGP 14.7bn, up 23% YoY, while FY 2023 amounted to EGP 56.7bn, up 28% YoY. Although market headwinds continued to challenge us, we remained focused on our strategy and forged ahead with our investment plans to support our growth opportunities, strengthen our partnerships, and improve our operations—all of which contributed to the great results you see today.

Our customer base continues to grow, marking an 8% and 9% YoY increment for fixed voice and broadband, respectively; meanwhile, the mobile customer base was largely flat at the end of FY 2023, but began to grow again at the start of 2024.

EBITDA margin surpassed our guidance, thanks to exceptional operational results and major cost savings from the national roaming agreement, which came into effect at the start of 2023.

We continued to strategically procure settle our CapEX requirements upfront, as such FCFF was strained, amounting to a negative EGP 3.6bn, mainly due to the increase in vendor payments as a tool to hedge against expected FX fluctuations in 2024, and other unforeseeable risks given the current volatile situation in the region.

As we enter 2024, in addition to the price up that already came into effect starting January—which I believe will greatly support our financial position—we remain committed to driving business success with customer-centric innovation strategies. Our focus will be on improving existing services and product offerings, as well as adding new products and services—such as expanding our submarine cable footprint and 5G services. I’m confident that our action plan will unlock Telecom Egypt's full potential and ensure that it is a consistently high-performing business that delivers increased shareholder value. On that note, on the back of these fantastic results, we distributed EGP 1.5 per share.”

Telecom Egypt |WE was deservedly awarded the fastest fixed network in North Africa and “Fastest Mobile Internet in Egypt” by Ookla, a world leader in measuring and evaluating internet speeds, during a ceremony held on the sidelines of the Mobile World Congress (MWC 2024), which took place from 26 to 29 February 2024. The awards were received by Telecom Egypt CEO, Eng. Mohamed Nasr.

Ookla’s evaluation is based on precise analysis of tests conducted by users through the Speedtest application. The awarding of the two prizes to the "WE" network confirms Telecom Egypt's commitment to continuous investment in developing and modernizing the telecommunications infrastructure in Egypt, and utilizing the latest global technologies in the field of communications and information technology to ensure that its customers receive the best level of integrated communications services. Recently, Telecom Egypt |WE obtained a license to provide 5G services, becoming the first telecom network in Egypt to offer these services to its customers, as part of its marketing strategy that seeks to maintain its leadership as the country’s first fully integrated telecommunications and ICT operator.

Commenting on the awards, Telecom Egypt CEO, Eng. Mohamed Nasr said: “I am delighted with this recognition and for Telecom Egypt |WE receiving the titles of Fastest Fixed Broadband Network in North AfricaandFastest Mobile Internet in Egypt. This achievement crowns the significant steps the company has taken to develop infrastructure and enhance service levels.” “Telecom Egypt - WE will continue striving to improve the customer experience and meet evolving demands to keep pace with the major developments expected in the market.” He added.

WE’s internet services provide customers with a unique experience when using video and gaming platforms at high speeds, ensuring excellent quality and efficiency. Mobile internet services also deliver high speeds in downloading and uploading files of different sizes, meeting customers’ demands for superior performance, reliability, and speed.

Telecom Egypt |WE, Egypt’s first fully integrated telecom operator, has signed a cooperation protocol with Ora Developers Egypt to provide a comprehensive suite of integrated telecommunications services across its real estate developments.

The protocol was signed by Mr. Mohamed Abu Taleb, CCO at Telecom Egypt, and Mr. Haitham Abdel Azim, Managing Director and Board Member of Ora Developers Egypt.

Under this protocol, Telecom Egypt |WE will deliver a fully integrated portfolio of telecommunications services in line with the latest advancements in telecommunications technology across residential, commercial, and administrative units within Ora Developers Egypt’s projects. These services include landline, high-speed internet, IPTV services, and other advanced smart city solutions. In addition, Telecom Egypt will establish mobile signal towers and booster stations to ensure maximum network efficiency and optimal coverage throughout the real estate developments.

The protocol also grants Telecom Egypt |WE a package of advertising, promotional, and marketing sponsorship rights within Ora Developers Egypt’s projects, in addition to providing designated retail outlets for offering Telecom Egypt’s full range of services on-site. Furthermore, Telecom Egypt will serve as the official and exclusive telecommunications and internet sponsor for all major events and festivals held within Ora Developers Egypt’s developments.

The cooperation between Telecom Egypt |WE and Ora Developers Egypt covers the provision of telecommunications services across several flagship projects, including Silver Sands in the North Coast, Solana New Zayed, Pyramids Hills in October City, Zed Sheikh Zayed, Zed East in New Cairo, and Zed Park in Sheikh Zayed.

Commenting on the signing of the protocol, Mr. Mohamed Abo Taleb, CCO at Telecom Egypt, stated: “We are pleased to collaborate with Ora Developers Egypt and to continue supporting real estate developments with the latest smart city and advanced telecommunications services.” He added: “Telecom Egypt possesses a robust infrastructure and extensive technical expertise, which have positioned it as the preferred partner for more than 90% of real estate projects in Egypt. Both companies share a common goal of achieving customer satisfaction and ensuring the highest standards of telecommunications and IT services.”

For his part, Mr. Haitham Abdel Azim, Managing Director and Board Member of Ora Developers Egypt, said: “We are delighted to sign this protocol with Telecom Egypt |WE benefiting from its extensive experience in the telecommunications sector in Egypt.” He added: “Ora Developers Egypt is always committed to delivering the highest quality services to its customers and adopting advanced technologies to achieve its core objectives. This cooperation represents a valuable opportunity to achieve further excellence and provide innovative services.”

Telecom Egypt’s Board of Directors has approved the 2024 budget with KPI guidance as follows:

• Mid double-digit revenue growth.

• EBITDA margin in the late thirties.

• In-service CapEx-to-sales ratio in the early twenties, excluding license fees.

• FCFF to EBITDA ratio in the early forties, excluding license fees.

Mohamed Nasr, Managing Director and Chief Executive Officer, commented: "We expect 2024 to mark another year of growth for Telecom Egypt, as we seek to unlock multiple potential opportunities and pursue strategic moves that will further solidify our position as a major player in the regional telecom market.

Data will remain the leading revenue source, but we forecast continued momentum in our international revenue streams, hedging our hard currency exposure despite FX rate fluctuations. In addition, as we grow and expand our suite of products and services organically, such as the new local and international platforms (WE Gold and WE Connect), we expect to gain more market share and see improved operations, which will filter through to a better cash position – helping us to reach a positive FCFF in 2024. Furthermore, we will pursue investing in a resilient, adaptable, and secure network infrastructure to ensure smooth business expansion and avoid any supply chain pressures. One of our main goals will be to maximize the value of our unique assets, such as data centers and mobile towers, through innovative financing strategies, including equity options. As we continue to connect the unconnected, we will also explore avenues of increasing our share in government projects, in line with the country’s digital transformation strategy--a key component of Egypt Vision 2030. Our continued focus on this strategy, combined with our substantial return on investment from Vodafone, will enable us to deliver value to our shareholders and other stakeholders.”

Telecom Egypt has selected Raya Information Technology (Raya IT), a subsidiary of Raya Holding for Financial Investments, to implement the second phase of Telecom Egypt’s Regional Data Hub (RDH). This second phase of the state-of-the-art data center—slated for launch in 18 months—is poised to transform the telecommunications industry by providing enhanced connectivity, reliability, and sustainability for its customers. The decision to expand was prompted by the need to meet growing demand following the resounding success of RDH’s first phase, which reached full utilization in just one year.

Under this collaboration, Raya IT’s experience team will provide a range of services for the new RDH phase, as well as the latest solution and top-notch innovative technology to support business growth in the digital landscape, thereby enhancing the data center’s scalability and adaptability in the ever-changing digital world. The range of services includes data center design and planning, data center construction, power infrastructure, cooling solutions, physical security, fire suppression systems, and rack and cabinet installation.

The advanced design will adhere to international sustainability standards, address the pressing issue of rising energy costs, and minimize the environmental impact. Raya IT will also facilitate the acquisition of the Uptime Institute Tier III Certification in Design, Constructed Facility, and Operational Sustainability for this second phase. This certification reaffirms Telecom Egypt’s unwavering commitment to delivering exceptional service quality and ensuring a resilient infrastructure for its customers.

The second phase of RDH is strategically located to act as a regional hub offering scalability options to all phase one RDH customers, while also providing seamless connectivity to all 10 Mediterranean and Red Sea subsea landing stations. It also offers businesses a unique opportunity to expand globally, with access to over 60 countries.

Upon completion of this second phase, RDH will boast a capacity of up to 7.1 MW IT load. The plan involves the construction of two additional phases within the Smart Village availability zone, to reach a total capacity of up to 16.3MW IT load. Leveraging this capacity, current RDH customers and new potential customers can swiftly scale and adapt in the rapidly evolving digital landscape. This capacity will also enrich the end-user experience, mark a new step in the Digital Egypt strategy, and propel Egypt to become one of the world’s major data hubs.

It is worth mentioning that the first phase of RDH launched in the first quarter of 2021. As previously mentioned, it is now fully utilized--hosting most of the local ISPs and more than 22 international customers, comprising cloud providers, content providers, as well as EG-IX, the first open access regional Internet Exchange platform in partnership with AMS-IX, Europe’s leading Internet Exchange platform.

Mohamed Nasr, Managing Director and Chief Executive Officer, commented: “Telecom Egypt proudly demonstrates its unwavering dedication to achieving excellence and fostering innovation through the remarkable development of the second phase of RDH. This new phase is a groundbreaking achievement that establishes unprecedented benchmarks in data center connectivity, reliability, and sustainability. By embracing this state-of-the-art infrastructure, organizations can thrive in an era defined by digital transformation and interconnectivity.

With improved services and increased redundancy, the cutting-edge data center will be ready to meet increasing co-location demands, ensuring top-notch performance. We believe that this expansion will solidify the company’s position as the number one choice for businesses that prioritize risk management and low-latency performance in data center services.”

Hesham Abdel Rassoul, CEO - Raya IT LOB, commented: “It’s such an honor to be selected by Telecom Egypt to take part in the fulfillment of its second phase of the RDH. In this context, we take pride in the role that Raya IT has played in the remarkable evolution of Telecom Egypt in the past 2 decades. Capitalizing on our extended track record of successful data center projects with large enterprises across the MEA region, combined with our team of experts, we have enabled our clientele to achieve enhanced levels of business performance through several cutting-edge solutions.

We are eager to support Telecom Egypt in its journey toward transforming the telecommunication industry by providing our innovative data center solutions. Our power-efficient solutions meet the highest data center standards, aligning with Egypt Vision 2030 and Egypt’s digital transformation strategy.”

Telecom Egypt |WE", the first fully integrated telecom operator in Egypt, signed a cooperation protocol with Madinat Masr Company to provide all integrated communications services and smart city services in its real estate projects. The protocol was signed by Engineer Mohamed Nasr, Managing Director and CEO of Telecom Egypt, and Engineer Abdullah Salam, CEO and Managing Director of Madinat Masr Company.

Under this protocol, Telecom Egypt |We provides an integrated package of telecommunications services and smart city services according to the latest communications technology within residential, commercial, and administrative units, including landline, high-speed Internet, IP TV broadcasting services, and others. To ensure superior communication services and network coverage Telecom Egypt will establish towers and mobile signal booster stations across the projects in addition to providing sales outlets to provide all sales services from Telecom Egypt and Public Wi-Fi services.

Eng. Mohamed Nasr, Managing Director and CEO of Telecom Egypt, said, "Telecom Egypt continues its efforts to spread integrated telecommunications services and smart city services in new real estate projects, ensuring that they keep pace with customers' aspirations and needs and in line with the rapid development of telecommunications technologies." He added, "I am happy to sign this agreement with Madinat Masr, a leading company in the field of real estate development, and we seek continuous cooperation to ensure that the best level of telecommunications services reaches customers within its real estate projects."

Eng. Abdullah Salam, CEO and Managing Director of Madinat Masr Company, said, "At Madinat Masr Company, we always strive to create sustainable, integrated communities that provide comprehensive smart city services across our projects. This is why we are proud to cooperate with Telecom Egypt to deliver an integrated package of services, leveraging the latest communications technologies, to our customers within residential, commercial, and administrative units." He added, “This collaboration reinforces our growth and expansion strategy as we seek to deliver an exceptional customer experience while offering innovative services that meet all their needs. The partnership also reflects our shared vision of developing urban communities with advanced infrastructure that enhances the quality of life across our projects.

For his part, Mohamed Abu Taleb, CCO at Telecom Egypt, expressed his pleasure in cooperating with Madinat Masr Company, stating, “Such an agreement confirms the growing confidence of real estate development companies in Telecom Egypt’s ability to deliver the highest level of telecommunications services, supported by its distinguished infrastructure and advanced technical expertise.”

9M 2023 key highlights

Consolidated revenue up 30% YoY, reaching EGP 42.0bn, thanks to IDD revenue, which almost doubled YoY reaching EGP 4.3bn on increased traffic (+12% YoY) and USD appreciation, followed by a 50% YoY increase in cable revenue reaching EGP 3.1bn, and the continuous increase in both fixed and mobile data revenues (+18% YoY, landing at EGP 15.9bn). Customer base grew on all fronts, with fixed voice reaching 12.4mn subscribers (+9% YoY), fixed data reaching 9.3mn subscribers (+8% YoY), and mobile subscribers reaching 12.5mn (+6% YoY). EBITDA hiked to EGP 17.6bn, achieving a strong margin of 42% on the back of an improved revenue mix.

Operating profit reached EGP 10.6bn, up 23%, despite the 38% YoY inflation in D&A costs. Net profit grew 48% YoY, reaching EGP 9.1bn despite 3.7x higher interest expense, driven by the positive operational results and 67% higher investment income that reached EGP 3.4bn.

In-service CapEX reported EGP 11.7bn, implying in-service CapEX/sales of 28%, while cash CapEX reported EGP 18.4bn (including license), implying cash CapEX/sales of 44%. Excluding the license instalments, cash CapEX/sales would reach 37%.

Net debt reached EGP 35.9bn, with net debt/EBITDA on an annualized basis coming in flat at 1.5x vs. 1.4x in FY 2022 despite the 51% upside in gross debt due to foreign currency exposure revaluation. Net operating cash flow reached EGP 11.4bn. However, FCFF amounted to a negative EGP 2.3bn, mainly due to the increase in vendor payments to secure CapEX and as a means of hedging against expected FX fluctuations.

Mohamed Nasr, Managing Director and Chief Executive Officer, commented: “I’m pleased with our 9M 2023 financial results, as we head towards year-end on a strong note. Total revenue amounted to EGP 42.0bn, culminating from good, broad-based growth across all business units, and reflecting the value of our consistency in enhancing our services. Retail came through at the top again with EGP 23.2bn in revenue, up 16% YoY, driven by meaningful growth in fixed & mobile data services. Our wholesale also gained traction with EGP 18.8bn in revenue, up a strong 52% YoY. Across the board, we once again recorded an increase in customer numbers. EBITDA margin came in at 41.9% and operating profit grew by 23% YoY.

Our margins remained resilient against the inflationary pressures witnessed across the various cost elements in 9M 2023 (particularly the higher interest expense and currency devaluation), thanks to organic operational performance and continued savings from the national roaming agreement. Management continued to strategically procure and settle its CapEX requirements upfront, as such FCFF was strained, amounting to a negative EGP 2.3bn mainly due to the increase in vendor payments as a means of hedging against expected FX fluctuations in 2024 and other unforeseeable risks given the current volatile situation in the region.

We continue to innovate and deliver, keeping in mind the rapidly changing needs of our partners and end users. A case in point is the recently launched WeConnect cross-connection ecosystem, which reflects our dedication to focus on our partners’ connectivity needs by designing solutions and further developing our well-established infrastructure to create sustainable financial returns and increase our shareholder value.

Looking ahead to 2024, our strategy will be to focus on the pathways that will deliver significant and sustainable profitability. We will pursue and prioritize different growth options and opportunities to monetize our assets, especially U.S. dollar-generated assets, to bring more agility to the investment outlays for our core business, and to manage our operating costs. We will continue to deploy and develop innovative technologies to enhance the business and improve the end-user experience while enhancing our pricing and marketing strategies. I remain confident in our long-term trajectory as we already have the right formula in place for continued success and long-term growth.”

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."

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.”

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, 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 (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."

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."

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.

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.”

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.”

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 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 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.”

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.”

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, 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.”

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.”

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.

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.”

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."