Cairo - Mubasher: Telecom Egypt (TE) reported its consolidated net profit after tax for the second quarter of 2016, where it stood at 1.039 billion a year-on-year growth of 175% from EGP 378 million in the same period of the previous year.
TE highlighted that the primary driver behind its profits surge is higher total revenues, and an
increase in income from investments, primarily attributable to Vodafone Egypt.
Total Income from investments, mainly representing TE's stake in Vodafone Egypt (VFE), grew
104.6% year-on-year, declined 7.5% % q-o-q amounting to EGP 716 million during H1 2016.
The net profit margin for the period was 36.4%; this translates to an increased EPS of EGP 1.36.
As for the EBITDA, the second quarter of 2016 saw EBITDA of EGP 1,066 million which was an increase of 21% over the Q2 2015, largely driven by strong performance in our higher margin retail business.
Meanwhile, total costs were contained during the second quarter 2016 – down 0.6% year-on-year - as TE maintained stringent procurement and payment practices. As a percentage of sales, costs remain well within management targets.
