Ahmed Kamel – Egypt Daily News
Egypt’s largest fixed-line operator, Telecom Egypt, reported a sharp surge in profitability for the fiscal year ending December 31, 2025, underscoring the telecom sector’s resilience amid broader economic adjustments.
The company announced that net profit after tax jumped 123 percent year on year to 22.6 billion Egyptian pounds, supported by robust operating performance and stronger investment income. Profit margins reached 21 percent, reflecting what management described as disciplined execution and sustained demand across core services.
Operating strength drives earnings
Telecom Egypt said earnings before interest, taxes, depreciation and amortization (EBITDA) rose 46 percent to 47.5 billion pounds, delivering an EBITDA margin of 45 percent. The results were driven in part by a 71 percent increase in investment income from its stake in Vodafone Egypt, which helped offset higher interest expenses that climbed 18 percent and depreciation and amortization costs that rose 16 percent.
Group revenues grew 31 percent to 106.7 billion pounds, reflecting broad-based expansion across the company’s business lines. Data services revenues surged 46 percent, while international call revenues increased 30 percent. Submarine cable projects expanded 31 percent, and infrastructure services provided to other operators grew 11 percent.
Expanding subscriber base
The company reported continued growth in its customer base across all major services. Mobile subscribers rose 10 percent year on year, fixed broadband customers increased 8 percent, and fixed voice subscriptions grew 7 percent.
Capital expenditures on in-service assets reached 20.4 billion pounds, equivalent to 19 percent of total revenue, while cash capital spending stood at 29.6 billion pounds, or 28 percent of revenue. Despite the elevated investment cycle, the company improved its balance sheet metrics, with the net debt-to-EBITDA ratio declining to 1.3 times from 2.2 times a year earlier.
Free cash flow swings positive
Telecom Egypt reported a significant turnaround in free cash flow, which reached a positive 21.1 billion pounds in 2025 compared with negative 1.6 billion pounds in 2024. The company attributed the improvement to better working capital efficiency and tighter capital discipline.
Chief Executive Officer Tamer El-Mahdi said the 2025 results demonstrate the company’s ability to exceed targets by leveraging its core strengths and executing its strategy with discipline.
“The results reflect the effectiveness of our pricing strategies and the strong demand for connectivity and digital services,” he said, adding that cost optimization programs also played a key role in sustaining healthy margins.
Outlook supported by economic recovery and 5G plans
Looking ahead to 2026, management expressed confidence that Telecom Egypt is entering the year from a position of strength. The company cited expectations that the Egyptian economy will continue improving, with the Central Bank projecting real GDP growth of about 5.1 percent in fiscal year 2025/2026.
El-Mahdi said the new spectrum roadmap for 2026–2030 will support the rollout of fifth-generation services and strengthen the company’s long-term network capacity expansion plans. Management identified financial discipline and customer satisfaction as top priorities for the coming period.
The company also reaffirmed that sustainability will remain central to its investment and operating strategy, with continued focus on network modernization and responsible operational practices aimed at supporting balanced growth and long-term resilience.
Dividend proposal
Telecom Egypt’s board of directors proposed a cash dividend of 1.5 Egyptian pounds per share for fiscal year 2025, subject to approval by the company’s ordinary general assembly.
The strong earnings performance highlights the telecom sector’s growing role in Egypt’s digital economy, as operators benefit from rising data consumption, infrastructure demand, and expanding digital services adoption across the market.
