Ahmed Kamel – Egypt Daily News
Telecom Egypt delivered a strong first quarter of 2026, reporting solid growth in revenue, earnings and cash flow despite a challenging regional environment and the impact of foreign exchange-related accounting losses.
The state-backed telecommunications operator posted total revenue of EGP 28.2 billion during the first three months of the year, an increase of 14 percent compared with the same period in 2025. Growth was driven primarily by rising demand for data services, continued expansion of its customer base and strong performance from international wholesale operations.
Data Services Continue to Power Growth
Telecom Egypt said total data revenue increased by 23 percent year-on-year and accounted for nearly 69 percent of the company’s overall revenue growth during the quarter.
International incoming calls revenue rose 27 percent, while domestic infrastructure services revenue increased 18 percent, reflecting sustained demand for the company’s network assets and wholesale connectivity services.
The company also continued to add subscribers across all major segments. Mobile customers increased by 7 percent compared with a year earlier, while fixed broadband and fixed voice subscribers grew by 8 percent and 7 percent respectively.
The steady expansion highlights the resilience of demand for telecommunications services even amid economic uncertainty and regional geopolitical tensions.
EBITDA Climbs to EGP 12.6 Billion
Operating performance remained strong during the quarter, with EBITDA rising 17 percent year-on-year to EGP 12.6 billion.
The EBITDA margin improved to 45 percent, supported by healthy organic growth and continued operational efficiency.
Net profit reached EGP 3.6 billion, resulting in a net profit margin of 13 percent. However, reported earnings were affected by a non-cash foreign exchange loss of EGP 5.3 billion linked to the revaluation of foreign currency liabilities.
Excluding this accounting impact, Telecom Egypt said adjusted net profit would have reached approximately EGP 5.9 billion, representing growth of nearly 27 percent compared with the first quarter of last year.
The company noted that a 25 percent decline in interest expenses helped offset a 15 percent increase in depreciation and amortization charges.
Cash Flow and Balance Sheet Improve
Telecom Egypt generated significantly stronger cash flow during the quarter.
Free Cash Flow to Firm rose to EGP 6.4 billion, compared with EGP 3.5 billion in the same period last year. The improvement was attributed to stronger operating cash generation, better working capital management and more efficient capital spending.
The company’s net debt-to-EBITDA ratio improved to 1.3 times at the end of March, down from 1.6 times a year earlier. Telecom Egypt said disciplined leverage management and strong earnings growth contributed to a reduction of EGP 8 billion in net debt.
Capital expenditure remained elevated as the company continued investing in network upgrades and next-generation services. Cash Capex, including spectrum license costs, totaled EGP 8.8 billion, equivalent to 31 percent of revenue. In-service Capex amounted to EGP 1.3 billion, representing 5 percent of sales.
Network Investments Support Long-Term Strategy
Chief Executive Officer and Managing Director Tamer El Mahdi said the quarter unfolded against a backdrop of heightened regional tensions and continued economic adjustments following Egypt’s foreign exchange liberalization reforms.
Despite those challenges, he said Telecom Egypt benefited from the essential nature of connectivity services, its diversified business model and the protection offered by its dollar-linked international wholesale revenues.
El Mahdi also highlighted the company’s network leadership. In February 2026, independent analytics firm Opensignal recognized WE as Egypt’s best network, awarding the operator eight distinctions, including top rankings for download speed, reliability and overall network quality.
Telecom Egypt continues to advance its nationwide 5G rollout while expanding digital services and enterprise solutions. Following a recent reorganization of its retail operations, the company is increasing its focus on small and medium-sized businesses and fixed-mobile convergence offerings.
International Connectivity Business Remains a Key Advantage
The company’s international cables and wholesale operations continued to play an important role in its growth strategy.
Telecom Egypt said Egypt’s strategic geographic position remains a major competitive advantage, with more than 90 percent of data traffic moving between Europe, Asia and Africa passing through the country.
Growing global demand for secure and diversified communications routes, particularly amid ongoing geopolitical uncertainty, has strengthened the long-term importance of Egypt’s telecommunications infrastructure and supported growth in the company’s international business.
Outlook Strengthened by Tariff Adjustments
Looking ahead, Telecom Egypt expects recently approved pricing adjustments by the National Telecom Regulatory Authority to provide additional support for revenue growth.
The new measures allow broadband and mobile service prices to increase by approximately 13 to 15 percent. Management believes the adjustments will contribute positively to performance during the remainder of the year.
As a result, the company said it now expects to exceed its previous full-year guidance for high single-digit revenue growth while maintaining EBITDA margins in the low forties, an in-service Capex-to-sales ratio in the low twenties and positive free cash flow generation.
Telecom Egypt also reaffirmed its commitment to shareholder returns, noting that it distributed a cash dividend of EGP 1.50 per share for fiscal year 2025 on April 30.
With growing demand for data services, expanding subscriber numbers and increasing international connectivity needs, Telecom Egypt enters the rest of 2026 with strong momentum and a strengthened financial position, reinforcing its role as one of Egypt’s most important digital infrastructure providers.
