CAIRO - Telecom (BCBA:TECO2m) Egypt, the comprehensive telecom services provider, has announced its 2025 budget with optimistic financial targets, following approval by the Board of Directors. The company anticipates revenue growth in the low twenties percentage and an EBITDA margin in the high thirties. Additionally, the in-service capital expenditure (CapEx) to sales ratio is projected to be in the low twenties, with a positive free cash flow to EBITDA (FCFF-to-EBITDA) ratio estimated in the early forties.
Mohamed Nasr, the Managing Director and CEO of Telecom Egypt, expressed confidence in the company's performance for the coming year. He attributes the positive outlook to the stabilization of global macroeconomic conditions and the robustness of Telecom Egypt's business model. Despite current economic complexities, Nasr believes that the company's strategy of maintaining operational expenses amid inflation will enhance profitability.
Telecom Egypt's capital expenditure plans have been optimized to prioritize high-yield investments, aiming to improve network quality and service while also enhancing cash flows. Nasr emphasized the company's focus on strategic asset monetization and cost optimization to drive operational efficiency and sustainable growth, all with the goal of delivering long-term shareholder value.
Telecom Egypt has a history spanning approximately 170 years and plays a pivotal role in Egypt's telecommunications sector. It offers a broad range of services, including fixed and mobile voice, high-speed internet, and smart solutions. The company also provides data center facilities and cloud computing solutions tailored for various customer segments, from individual users to large enterprises.
The company's extensive network coverage and commitment to innovation have solidified its position as a leader in the Egyptian telecom market. Telecom Egypt also holds a 45% ownership stake in Vodafone (NASDAQ:VOD) Egypt and trades shares and GDRs on the Egyptian Exchange and the London Stock Exchange (LON:LSEG) under the tickers ETEL.CA and TEEG.LN, respectively.
This financial outlook is based on a press release statement from Telecom Egypt.
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