Telecom Egypt (ETEL) – Strong Earnings Growth and Improving Financial Performance
Telecom Egypt delivered a strong financial performance during the first nine months of 2026, reflecting continued operational growth and improved profitability compared to the same period in 2025.
Revenue and Profitability Growth
Consolidated revenues reached EGP 93.6 billion, compared to EGP 78.3 billion in 9M 2025, representing a 19% year-on-year increase.
Net profit after tax surged by 44% to EGP 24.4 billion, compared to approximately EGP 17 billion in the same period last year. The fact that profit growth significantly outpaced revenue growth highlights the company’s improving operating efficiency and ability to convert revenue growth into higher profitability.
Strong Operating Performance
EBITDA increased by 24% year-on-year to EGP 43.1 billion, compared to EGP 34.8 billion, while the EBITDA margin improved to 46% versus 44% in 9M 2025.
Data services remained a key growth driver, recording a 30% increase in revenues, supported by rising demand for internet services and continued expansion of digital infrastructure.
Improving Financial Position
Telecom Egypt generated EGP 28 billion in free cash flow, while its net debt-to-EBITDA ratio declined significantly to 0.8x from 1.5x, reflecting a stronger financial position and improved balance sheet flexibility.
Future Growth Drivers
The company’s strategic infrastructure assets, including its extensive fiber-optic network, international submarine cable investments and data center capabilities, provide significant opportunities to capitalize on the growing demand for connectivity and digital services.
Investment Outlook & Recommendation
We maintain a positive outlook on Telecom Egypt, supported by strong earnings growth, improving operating margins, healthy cash generation and a declining leverage ratio.
The company’s strategic assets and expanding role in the digital economy provide a solid foundation for sustainable growth and long-term shareholder value creation.
Our Recommendation: BUY
Target Price: EGP 166 per share
We believe Telecom Egypt offers an attractive investment opportunity, backed by strong financial performance and promising long-term growth prospects.
Strong growth. Improving profitability. Stronger financial position.
Walaa Mosalam - Prime *Research
*WMosalam@egy.primegroup.org*