TE cash liquidity drops 75% amid ‘wrong’ decisions: sources

The total volume of cash liquidity of Telecom Egypt (TE) dropped by more than 75 percent at the end of June 2015, sources with knowledge of the matter announced Sunday.

Speaking to Amwal Al Ghad, the sources stated the decline was due to ‘wrong’ investment decisions about renewing and replacing copper cables with optic ones besides connecting the new MSAN cables whose cost is estimated at more than 4.5 billion pounds.

The current available cash liquidity of TE is estimated at 2 billion Egyptian pounds (US$249.1million) opposed to more than 6 billion pounds during the first six months of 2014, the sources added.

More than 80 percent of Telecom Egypt’s shares are owned by the Egyptian government while the other 20 percent are traded in the Egyptian stocks.

Telecom Egypt has achieved net profit after tax estimated at around 932 million pounds within the first six months on 2015 versus 763 million pounds a year earlier.

The capital of Telecom Egypt is estimated at 17.1 billion pounds divided on 1.71 billion shares; 10 pounds per a share.

As Egypt’s incumbent telecommunications operator, Telecom Egypt currently controls Egypt’s only fixed line network, servicing both retail voice and wholesale demand for reliable telecommunications connections.

TE has focused on building a strong platform for wholesale services to other telecommunications operators choosing to use its extensive network.

Telecom Egypt is currently participating in the mobile segment in Egypt by providing mobile interconnectivity via our state-of-the-art infrastructure and through our 44.95% holding in Vodafone Egypt, one of the three existing Egyptian mobile operators.