Vodafone Egypt pre-tax profits hit €652 million in FY2020/21

By Nayera Eid On May 18, 2021

Vodafone Egypt announced on Tuesday it posted profits before interest and tax worth €652 million (11.98 billion Egyptian pounds or $796.7 million) for the financial year 2020/2021 ended in March.

The subsidiary of British telecoms group Vodafone recorded around 11 percent year-on-year growth in revenues to around 29.34 billion Egyptian pounds (around €1.54 billion) in the 2020 -2021 from 26.4 billion pounds in the 2019 – 2020.

Vodafone’s financial year begins in April per year and ends in March.

The mobile operator said the financial results were based on euro’s exchange rate of around 18.44 Egyptian pounds.

Vodafone has 41.7 million customers in Egypt, according to a copy of the telecoms group’s financial results reviewed by Amwal Al Ghad.

“Service revenue in Egypt also grew ahead of inflation, supported by customer base growth and increased data usage, partially offset by lower roaming and visitor revenue.” Vodafone’s financial results read.

“During the year, we added 402,000 mobile contract customers and 1.1 million prepaid mobile customers. Mobile contract churn in Egypt was the lowest in the entire Group at 6.5 percent.”

“Adjusted EBITDA increased by 8.5 percent and the adjusted EBITDA margin decreased by 0.7 percentage points. This reflected strong revenue growth and operating efficiencies in Turkey, offset by the lapping of a prior year settlement and the impact of the temporary zero-rating of e-money transaction fees in Egypt. The adjusted EBITDA margin was 32.6 percent.”

In November 2020, Vodafone announced that Vodafone Egypt had acquired 40MHz of 2.6 Ghz spectrum, with a 10-year licence through to 2030.

“The spectrum will enable us to significantly expand network capacity to meet growing demand for reliable, high quality voice and data services.”

“In December 2020, we announced that discussions with Saudi Telecom Company in relation to the sale of Vodafone’s 55 percent shareholding in Vodafone Egypt had been terminated. Vodafone Egypt has a strong market position in an attractive market and generates a strong return on capital employed, in excess of its local cost of capital. We are committed to retaining our presence in Egypt.”