Telecom Egypt Q1 2026 Revenues Surge 14% to EGP 28.2B; Normalized Net Profit Climbs 27%
Telecom Egypt (TE) reported a robust operational performance for the first quarter ending March 31, 2026, driven by sustained growth in data services, an expanding subscriber base, and resilient operational execution. Despite regional geopolitical volatility, the state-backed operator posted consolidated revenues of EGP 28.2 billion, a 14% year-on-year (YoY) increase.
Financial and Operational Highlights
Revenue Drivers: Data service revenues surged by 23% YoY, contributing 69% of the total revenue growth. International incoming call revenues rose by 27%, while infrastructure services provided to third parties grew by 18%.
Subscriber Growth: The company recorded consistent growth across all service segments, with mobile subscribers up 7%, fixed broadband users up 8%, and fixed voice subscribers up 7%.
Operating Profit: EBITDA grew 17% YoY to EGP 12.6 billion, maintaining a healthy EBITDA margin of 45%.
Net Profit: Reported net profit after tax stood at EGP 3.6 billion. However, excluding non-cash foreign exchange losses of EGP 5.3 billion, normalized net profit reached EGP 5.9 billion—a 27% increase compared to Q1 2025.
Management Commentary
Tamer El-Mahdaly, Managing Director and CEO of Telecom Egypt, characterized the Q1 results as a testament to the company’s operational flexibility. "Our performance remained resilient despite a complex regional geopolitical landscape and lingering currency fluctuations," El-Mahdaly stated. He noted that the company’s diversified revenue streams, particularly its international wholesale and dollar-denominated subsea cable revenues, provided a critical buffer.
Addressing the impact of foreign exchange, El-Mahdaly confirmed that the EGP 5.3 billion in non-cash FX losses—stemming from revaluating foreign currency-denominated liabilities—partially masked the underlying operational strength. He added that the company views the recent regulatory approval for mobile and fixed internet price adjustments (15% and 13.5% respectively) as a positive tailwind for upcoming quarters, positioning TE to potentially exceed its 2026 budget guidance.
Infrastructure and Capital Allocation
Telecom Egypt continues to leverage its strategic position as a global data transit hub, with over 90% of data traffic between Europe, Asia, and Africa passing through Egypt. Capital expenditure (Cash CapEx) reached EGP 8.8 billion, equivalent to 31% of revenue. The company’s balance sheet also strengthened, with the Net Debt/EBITDA ratio improving to 1.3x, down from 1.6x in the same period last year.