2025 Guidance: Enhanced Financial Position and Optimized CapEx

23 December 2024 - Telecom Egypt's Board of Directors has approved the 2025 budget with KPI guidance as follows:

·    Revenue growth percentage planned in the low twenties

·    EBITDA margin projected in the high thirties

·    In-service CapEx-to-sales ratio projected in the low twenties

·    Positive FCFF-to-EBITDA ratio estimated in the early forties

Mohamed Nasr, Managing Director and Chief Executive Officer, commented:

"We are optimistic about 2025 and confident it will be another strong year for Telecom Egypt. As the global macroeconomic conditions show signs of stabilization, our budget reflects our belief in the resilience and strength of our business model, which continues to navigate the complexities of the current economic landscape effectively.

We aim to continue our growth momentum while retaining our operating expenses amid the current inflationary environment to maintain and enhance our profitability. On the capital expenditure front, we have optimized our plans, underscoring our commitment to prioritize high-yield investments that drive our network enhancement and the quality of our services while improving our cash flows. By carefully reducing expenditure while maintaining revenue growth, we aim to generate healthier cash flows without compromising our strategic objectives.

Looking ahead, we remain focused on harnessing the full potential of our diverse service portfolio to fuel sustained growth. We will also prioritize the strategic monetization of our assets and infrastructure while rigorously optimizing costs to drive operational efficiency. Our unwavering commitment to sustainable growth across our core business lines positions us to deliver long-term value for our shareholders."

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About Telecom Egypt

Telecom Egypt is a total telecom services provider in Egypt that provides a wide array of services to a diverse customer base. Serving individuals, communities, SOHOs, SMEs and large enterprises, Telecom Egypt offers a comprehensive, innovative, and diversified portfolio of services, ranging from fixed and mobile voice to essential data solutions crucial in today's digital landscape. These services also include high-speed internet, smart solutions, data center facilities, and cloud computing solutions tailored for businesses.

With a rich heritage of about 170 years, Telecom Egypt continues to lead the Egyptian telecom market by providing cutting-edge technology, robust infrastructure, and an extensive network of subsea cables to meet the needs of its enterprise and consumer clientele. The company's pivotal role in Egypt's telecommunications landscape is underscored by its expansive network coverage, broad service range, and dedication to fostering innovation. Aside from its mobile operation "WE," Telecom Egypt holds a significant 45% ownership stake in Vodafone Egypt. Telecom Egypt's shares and GDRs (Ticker: ETEL.CA; TEEG.LN) are traded on the Egyptian Exchange and the London Stock Exchange.

For more information, contact:

The investor relations team

Email: [email protected]