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CORRECTION: Telecom Egypt 1st Quarter 2009 Results

14 May 2009 08:02

RNS Number : 2334S
Telecom Egypt S.A.E
14 May 2009
Β 

ο»Ώ

TelecomΒ EgyptΒ AnnouncesΒ First QuarterΒ 2009Β Consolidated Results

The following amendment hasΒ been made to the 'First Quarter 2009 Consolidated Results' announcement releasedΒ today atΒ 07:00 under RNS No 2103S.
Please note the correction to Vodafone Egypt's Total Revenue and Net Profit
All other details remain unchanged.
Β 
The full amended text is shown below.

Β 

Β 

Cairo, 14Β MayΒ 2009:Β TelecomΒ EgyptΒ (TE)Β (Ticker: ETEL.CA; TEEG.LN), today announced its consolidated financial resultsΒ for theΒ firstΒ three monthsΒ of 2009, ended 31 March 2009. Financial statements have been prepared in accordance withΒ Egyptian Accounting Standards.Β 

Highlights forΒ first quarterΒ include:

TotalΒ ConsolidatedΒ RevenuesΒ ofΒ EGPΒ 2,526Β million, upΒ 6% on Q1 2008.

EBITDAΒ BeforeΒ ProvisionsΒ wasΒ EGPΒ 1,351Β million, delivering a margin ofΒ 53%.

NetΒ Profit AfterΒ TaxΒ was EGPΒ 961Β million representing an increase ofΒ 72% onΒ the same period in 2008 and translating to a net profit margin ofΒ 38%.

EarningsΒ PerΒ ShareΒ (EPS)Β increasedΒ toΒ EGPΒ 0.56, from EGPΒ 0.33Β inΒ the same period in 2008.

Capex related cash-flowsΒ wereΒ EGPΒ 178Β million.

Total fixed line subscribersΒ wereΒ 11.6Β million,Β as atΒ 31Β March 2009.

TE DataΒ ADSLΒ subscribersΒ increased byΒ 83% on the same period in 2008 to reachΒ 477Β thousand.

Positive contributionΒ of share of profitsΒ from VodafoneΒ EgyptΒ ofΒ EGPΒ 350Β million.

Chairman's statement

Commenting on theΒ first quarterΒ results, Akil Beshir, Chairman and CEO of TelecomΒ Egypt, said:

"Amid challenging economic conditions and significant market volatility, I am pleased to report aΒ veryΒ solid first quarter performance for TelecomΒ Egypt. Not only are these achievements testament to TE's resilience and determination, against a backdrop of a dynamic and aggressive telecommunications market, they are also an endorsement of our stable business model.

"Once again, we have recorded year-on-year revenue growth across both our retail and wholesale businesses. Our retail revenues have increased modestly year-on-year to EGPΒ 1,468Β million, largely driven by an increase in access revenuesΒ and internet and data revenues. While voice revenues continue to experience some pressure from mobileΒ substitution, our extensive and modern network enables us to reap the benefits of the resulting increase in mobile trafficΒ through our wholesale revenuesΒ which increased 11% year on year.Β 

"Our EBITDAΒ before provisionsΒ margin remainsΒ comfortablyΒ withinΒ management expectations atΒ 53Β percent, reflecting prudent financial management. This has fed directly through to aΒ 72Β percent year-on-year increase in net profit, which reached EGPΒ 961Β million for the first three months.

"TE continues to benefit from its investment in VodafoneΒ Egypt, which has increased its customer base byΒ 35Β percentΒ and total voice minutes by 36Β percent year-on-year, translating toΒ a EGPΒ 350Β million contribution toΒ our first quarterΒ profits.

"TE's management team is working hard to help ensure we continue to generate solid returns throughout 2009.Β We are not alone in facing an uncertain economic environment, which in itself presents challenges for TE and its customers.Β However, I am confident that our solid financial footing allows us to maintain significant flexibility in the business."

Financial Review

Revenues

TotalΒ consolidated revenues for theΒ first three months of 2009 increased byΒ 6% year-on-year to reach EGPΒ 2,526Β million.

While TelecomΒ Egypt'sΒ retailΒ voice revenues continue to come under pressure from the competition of other mobile operators, itΒ benefits fromΒ the growing mobile market throughΒ third party usage of itsΒ infrastructure andΒ itsΒ stake in VodafoneΒ Egypt.

Retail services

Total retail revenues for theΒ first quarter of 2009Β wereΒ EGPΒ 1,468Β million,Β aΒ modestΒ increase of 2% on the EGPΒ 1,435Β milliongenerated inΒ the same period inΒ 2008.

Total access revenues, comprising connections and subscriptions, were EGPΒ 536Β million, compared to EGPΒ 459Β millioninΒ Q1Β 2008,Β as a result of tariff rebalancing which was only effective in theΒ secondΒ half of 2008.Β 

Total voice revenues reached EGP 680 million for the first quarter of 2009, a decline of 4%Β onΒ the same period inΒ 2008, reflecting the increased pressure on this segment from the mobile market.Β However,Β the largest constituent of TelecomΒ Egypt'sΒ voice revenues,Β derived fromΒ local calls,Β hasΒ seen aΒ significantΒ increaseΒ year-on-year.

As TE Data further increased its market share, revenues from internet and dataΒ continued to grow,Β upΒ 27%Β year-on-year toΒ reachΒ 146Β millionΒ for Q1 2009. In the first quarterΒ alone,Β TE Data added 52 thousand new subscribers and now holds aΒ 60% share of the retail ADSL market. At the end of March 2009, TE Data had 477 thousands subscribers, an increase ofΒ 83% in comparison to the end of March 2008.

Wholesale services

WholesaleΒ revenuesΒ constitute an important part of TelecomΒ Egypt's revenue mix, accounting forΒ 42% of the total revenue base. TotalΒ wholesale revenues for theΒ first three months of 2009Β wereΒ EGPΒ 1,058Β million, compared toΒ EGPΒ 952Β millionΒ during the same period in 2008. Year-on-year this demonstrates anΒ 11% increase.Β 

EBITDA/EBIT

Consolidated EBITDA before provisions for theΒ first quarter of 2009Β wasΒ EGPΒ 1,351Β million,Β anΒ 12%Β improvement year-on-year, reflecting TelecomΒ Egypt's prudent cost managementΒ and lower interconnection connection costs.Β Β EBITDA marginΒ before provisions remainsΒ comfortablyΒ within management expectations atΒ 53%.Β 

EBIT before FX gains and lossesΒ increased by 32%Β year-on-yearΒ toΒ reachΒ EGPΒ 1,047Β millionΒ forΒ theΒ period until the end of March 2009.Β 

Income from Investments

TelecomΒ EgyptΒ continues to capitalize on the growing mobile market through itsΒ 44.95% stake inΒ VodafoneΒ Egypt.

The Company's investments, including VodafoneΒ Egypt,Β increasedΒ 30%, to provideΒ anΒ incomeΒ contributionΒ ofEGPΒ 355Β millionΒ compared toΒ EGPΒ 273Β millionΒ for the same period last year.Β 

Vodafone Egypt has continued to perform well, reportingΒ total revenues of EGPΒ 11,767Β million for the full-year period ending March 2009, an increase ofΒ 13%Β on the previous year.Β As of March 2009, VodafoneΒ EgyptΒ had a customer base ofΒ nearlyΒ 19Β million, an increase ofΒ 35%Β year-on-year.Β (N.B.Β VE's financial year starts onΒ 1Β April).

Net profit

Consolidated Net Profit for theΒ three monthΒ period was EGPΒ 961Β million, a year-on-year increase ofΒ 72%.Β This representsΒ a quarter-on-quarter increase ofΒ 60%.Β Net Profit Margin remainsΒ in line with managementΒ expectationsΒ atΒ 38%.

This translates into an EPS of EGPΒ 0.56, versus EGP 0.33Β forΒ the period ended 31Β March 2008.

Investments in infrastructure

TelecomΒ EgyptΒ continues toΒ invest in itsΒ state-of-the-artΒ infrastructureΒ and important projects. In the first quarterΒ of 2009, CapexΒ was EGPΒ 178Β million.Β 

Debt

TelecomΒ EgyptΒ continues its debt repayment programme. In the first quarter, TelecomΒ EgyptΒ repaid in excess of EGPΒ 777Β million, with EGP 200 million of this amount representing early repayment.Β As of 31 March 2009, TelecomΒ Egypt's netΒ cashΒ positionΒ was EGPΒ 1,789Β million, compared to EGPΒ 2,002Β millionΒ of net debtΒ in March 2008.Β 

TE Financial Highlights

Three MonthsΒ Period Ending March

In EGP 000'sΒ (Except Per Share Data)

Mar. 2009

Mar. 2008

Β % Change

Β 

Sales Revenue

2,526

2,387Β 

5.8%

Β 

EBITDA Before Provisions

1,351

1,210Β 

11.7%

Margin

53.5%

50.7%

Β 

Β 

EBITDA After Provisions

1,317

1,185

11.2%

Margin

52.2%

49.6%

Β 

Β 

EBIT Before FX Gains or Losses

1,047Β 

Β 793

32.0%

Margin

41.4%

33.2%

Β 

Β 

EBIT

1,098

743

47.8%

EBIT Margin

43.4%

31.1%

Β 

Β 

Profit Before Taxes & Minority Interest

1,113

665

67.5%

Β 

Consolidated Net Profit

961

557Β 

72.5%

Net Profit Margin

38.0%

23.3%

Β 

Β 

EPS (EGP)

0.56

0.33

72.5%

TE Operational Highlights

Three MonthsΒ Period Ending March

Β 

Mar. 2009

Mar. 2008

% Change

Β 

Β 

Β 

Β 

Number of Fixed Line Subscribers

11,546,420

11,254,897

2.6%

Fixed Line Subscribers Net Additions

-152,045

26,048

ARPU (EGP/Month)

50.5

49.2

2.6%

CAPEX (EGP 000's)

177,606Β 

231,868Β 

-23.4%

TE Data

- Number of ADSL Subscribers

476,544

259,713

83.5%

- ADSL Subscribers Net Additions

52,131

37,547

38.8%

- Retail ADSL Market Share

59.6%

53.8%

10.6%

VodafoneΒ EgyptΒ Financial Highlights

Β In EGP millions (Except Per Share Data)

Full Year Period Ending March

Β 

Mar. 2009

Mar. 2008

% Change

Β 

Β 

Total Revenue

11,767

10,429

12.8%

Β 

Net Profit

3,079

2,700

14.0%

Β 

CAPEX

2,285

2,801

-18.4%

VodafoneΒ EgyptΒ Operational Highlights

Β 

Full Year Period Ending March

Β 

Mar. 2009

Mar. 2008

% Change

Β 

Β 

Closing Customers (000's)

18,941

14,074

34.6%

Β 

Net Adds (000's)

4,867

4,422

10.1%

Β 

Total Voice Minutes (millions)

30,887

22,661

36.3%

To download a complete copy of TelecomΒ Egypt'sΒ Q1 2009Β consolidated financial results statements and notes to these statements, please click the following link:

http://www.rns-pdf.londonstockexchange.com/rns/2334S_-2009-5-14.pdf

To download a complete copy of TelecomΒ Egypt'sΒ Q1 2009Β standalone financial results statements and notes to these statements, please click the following link:

http://www.rns-pdf.londonstockexchange.com/rns/2334S_1-2009-5-14.pdf

- Ends -

For further information:

Investor Relations Contacts

Ahmed Fathallah

MohamedΒ Kamal

Director of Investment & IR

Internal Reporting & Investor RelationsΒ Manager

Tel:Β +202 3131 6699

Tel:Β +202Β 3131 5219

Fax:Β +202 3131 6115

Fax:Β +202Β 3131 6115

E-mail:Β investor.relations@telecomegypt.com.eg

Notes to Editors:

Within this statement, we may make forward-looking statements regarding future events or the future performance of the Company. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. You should be aware that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. When relying on forward-looking statements, you should carefully consider the political, economic, social and legal environment in which TelecomΒ EgyptΒ operates. Such forward-looking statements speak only as of the time of this release today. Accordingly, Telecom Egypt does not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise other than as required by applicable laws, the Listing Rules or Prospectus Rules of the United Kingdom Listing Authority, the Egyptian Capital Markets Authority or theΒ EgyptianΒ Stock Exchange. The documents filed from time to time with these authorities may identify important factors that could cause actual results to differ materially from those contained in any forward-looking statements.

About TelecomΒ Egypt

Telecom Egypt (TE),Β Egypt's incumbent telecommunications operator, started its operations in 1854 with the first telegraph line inΒ Egypt. Then it was corporatized in 1998 to replace the former Arab Republic of Egypt National Telecommunication Organization (ARENTO). The Company is the largest provider of fixed-line services in the Middle East andΒ AfricaΒ with 11.6Β million subscribers as atΒ 31Β MarchΒ 2009.

TE provides retail telecommunication services including access, local, long distance and international voice, Internet and data, and other services. The company also provides wholesale services including bandwidth capacity leasing to ISPs, and national and international interconnection services. TelecomΒ Egypt's services also include the provision of narrowband and broadband internet access through its subsidiary TE Data. TE Data has active operations inΒ EgyptΒ andΒ Jordan.

TE currently participates in the mobile segment inΒ EgyptΒ by providing mobile interconnectivity through its current, increased 44.95% holding in VodafoneΒ Egypt, one of the three existing Egyptian mobile operators. TE's shares and GDRs (Ticker: ETEL.CA; TEEG.LN) are traded on theΒ EgyptianΒ Stock Exchange and the London Stock Exchange.

This information is provided by RNS
The company news service from the London Stock Exchange
Β 
END
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