Ahmed Kamel – Egypt Daily News
Telecom Egypt (WE), the country’s largest telecommunications operator, reported a 61.5% year-on-year increase in consolidated net profits for the first half of 2025. The surge, the company said, was driven by strong revenue growth, an expanding customer base, and higher earnings from its stake in Vodafone Egypt.
In a statement issued Thursday, Telecom Egypt announced that net profit reached EGP 10.5 billion during the first six months of the year. Revenues from its 45% stake in Vodafone Egypt more than doubled, thanks largely to recent hikes in service prices and improved operational efficiency.
This follows a decision by the Egyptian government in December 2024 to approve service price increases of up to 30% for telecom companies. The decision came in response to rising operational costs driven by fuel and electricity price hikes, as well as the continued devaluation of the Egyptian pound.
Growth Amid Fierce Competition
Telecom Egypt’s impressive performance comes despite stiff competition in the mobile services market, where it faces off against major global players including Vodafone (UK), Orange (France), and UAE-based e& (formerly Etisalat). The Egyptian market remains one of the most price-competitive in the region, with some of the lowest call rates in the Middle East, yet boasts one of the highest penetration rates.
The company’s consolidated revenues rose 33% year-on-year to EGP 50.6 billion, supported by strong growth across multiple segments including data services, international calls, and mobile operations. Customer numbers increased by 12%, while profit margins improved to 20%, up from 18% in the same period last year.
Debt Structure Strengthens
CEO Mohamed Nasr said the first half of 2025 also marked a turning point for the company’s financial structure. “We witnessed notable improvement in cash flows and debt metrics,” he noted. The company reduced its net debt-to-EBITDA ratio from 2.4x in H1 2024 to 1.6x in H1 2025, a significant step in enhancing financial flexibility.
Nasr added that Telecom Egypt will continue investing in network infrastructure and digital services. “Our priority remains on strengthening our core operations while exploring new growth opportunities,” he stated.
Analysts Forecast Further Upside
Mariam Wael, a telecom sector analyst at Al Ahly Pharos Securities, described Telecom Egypt as one of the prime beneficiaries of lower interest rates and ongoing debt optimization. “We believe the company’s ability to monetize underutilized assets and reinvest returns into reducing debt could represent a turning point in its market valuation,” she explained.
Wael projected that Telecom Egypt could achieve net profits between EGP 17 and 18 billion for the full year 2025, a sharp increase from the EGP 10.1 billion recorded in 2024.
Key Financial Highlights – H1 2025:
- Consolidated revenues rose 33% to EGP 50.6 billion.
- Net profit jumped 61.5% year-on-year to EGP 10.5 billion.
- Profit margin increased to 20%, up from 18% in H1 2024.
- Customer base grew by 12%.
- Vodafone Egypt profit share more than doubled.
As Telecom Egypt continues to navigate a volatile economic environment and rising market competition, its latest results highlight a robust ability to adapt and capitalize on growth avenues — positioning it strongly for continued expansion in the second half of the year.
