TEEG14 May 2012 09:25
Chief Executive Officer's Statement
Commenting on the first quarter results of 2012, Tarek Aboualam, Chief Executive Officer and Managing Director of Telecom Egypt (TE), said:
"We have made a very positive start to 2012, with sound financial performance which beat market expectations, and good progress against our strategic objectives.
"Following a turbulent year in 2011, the Egyptian business environment is showing signs of normalizing. This is reflected in our revenue performance year on year and quarter on quarter. Our cost optimisation programme is delivering tangible benefits and ensuring that our margins are protected. As such, net profit for the first three months of the year has increased by 1.7% on the same period in 2011, to stand at EGP 912 million.
"But, we are building a platform for the future and it is critical to consider our progress against objectives. Firstly, Vodafone Egypt continues to consolidate its position as a market leader, growing its customer base to a record 37.2 million.
"Elsewhere, TE Data's broadband footprint leads the market, with on average more than 50 thousand net new subscribers joining its service every quarter for the past three years. Our own direct double play subscribers have already, therefore, reached 1.2 million. Furthermore, our international cable business is already making a significant contribution to our wholesale revenues; this is a trend that we expect to continue.
"Finally, and subsequent to the close of the period, our goal of becoming a total telecoms provider has taken an important step forward with the recent announcement that the National Telecommunications Regulatory Authority (NTRA) has approved, in principle, the issuance of an MVNO license.
"Progressing on all fronts extends the reach of our business. I am confident that the compelling combination of operational foresight, financial prudence and focused strategy will continue to deliver economic value."