Telecom Egypt Signals Its Highest Dividend in Years as 2026 Earnings Surge
Telecom Egypt is signaling a potentially higher shareholder payout for 2026 after a sharp improvement in earnings, cash generation and leverage during the first half of the year, although management is stopping short of committing to a specific dividend per share.
Wael Hanafy, Chief Financial Officer of Telecom Egypt, said the company expects its dividend for the 2026 financial year to exceed the levels distributed over the past two to three years, provided the current operating momentum continues through the second half.
That would mark a break from the recent pattern of flat payouts.
Telecom Egypt has paid EGP 1.50 per share in each of its last three annual distributions, covering the financial years 2023, 2024 and 2025. The latest EGP 1.50-per-share dividend was paid on April 30, 2026.
Management, however, has not yet put a number on the next payout.
Hanafy said the company will reassess its financial position, liquidity and cash requirements closer to year-end before determining the dividend that will ultimately be proposed for 2026.
The cautious wording reflects the balance Telecom Egypt continues to strike between returning cash to shareholders and funding a capital-intensive investment programme covering mobile spectrum, 5G, fixed infrastructure and international connectivity.
Profit jumps 47% in the first half
The more optimistic dividend outlook follows one of Telecom Egypt’s strongest first-half profit performances in recent years.
Net profit rose 47% year on year to EGP 15.4 billion in the first six months of 2026, while the net profit margin widened to 26% from 21% a year earlier.
Revenue increased 17% to EGP 59.2 billion, driven primarily by a 26% rise in data revenue and a 32% increase in international incoming call revenue.
EBITDA climbed 20% to EGP 26.4 billion, keeping the margin at a strong 45%.
The company also reported growth across its customer base, with fixed broadband subscribers increasing 9% year on year, fixed voice customers rising 6% and mobile subscribers growing 4%.
Those numbers have strengthened management’s confidence in the second half of the year.
Tamer El Mahdi, Managing Director and CEO of Telecom Egypt, said the stronger momentum recorded in the second quarter had increased the company’s confidence in its financial and operational outlook for the remainder of 2026.
Cash flow gives management more room
The dividend discussion is also being supported by an improvement in cash generation.
Free cash flow to the firm reached EGP 10 billion during the first half, equivalent to 38% of EBITDA, while annualized net debt-to-EBITDA improved to 1.2 times from 1.6 times in the same period last year.
That gives Telecom Egypt greater financial flexibility, although capital spending remains substantial.
Cash capital expenditure, including licence payments, reached EGP 18.6 billion during the first six months, while in-service CapEx stood at EGP 4.9 billion.
The company is simultaneously funding network expansion and next-generation services while trying to maintain a disciplined approach to leverage and shareholder returns.
Earlier this year, Telecom Egypt said it expected to exceed its original 2026 guidance for high-single-digit revenue growth, supported partly by approved tariff adjustments for fixed broadband and mobile services.
No formal dividend policy yet
The prospect of a stronger payout does not mean Telecom Egypt has adopted a fixed dividend formula.
During the first-quarter earnings call, Hanafy said the company did not yet have a formal dividend policy approved by its board and general assembly, although management and the board had been working on maintaining dividends and gradually increasing them while balancing network investment requirements.
That leaves the 2026 dividend dependent on how the rest of the year unfolds.
But with profit, EBITDA and free cash flow all moving higher while leverage declines, management is now sending its clearest signal yet that shareholders could see a payout above the EGP 1.50-per-share level that has prevailed for the past three years.