Vodafone Egypt has announced its financial results for the fiscal year ending March 31, 2006, with the strongest results seen in its history in terms of active customer figures, revenues and profits.
Ian Gray, chief executive officer and managing director of Vodafone Egypt, who took the opportunity to thank customers and underlined the company’s commitment to Egypt, announced the results.
Customer figures increased by 60% to 6.6 Million compared to March 2005, while recorded revenues totaled to LE 5.945 billion this year, a significant 35% increase compared to the previous year.
EBITDA increased by 33% to LE 3.216 billion compared to March 2005, while the EBITDA margin remained stable at 54.1%. Profits After Legal Provisions and deferred tax amounted to LE 1.705 billion; an increase of 63% compared to March 2005.
“This year marks the highest customer growth in the company’s history, adding 2.58 million net additions during the year. I would like to take this opportunity to thank our customers for the trust that they have placed in us, we appreciate and understand that they had other choices, says Ian Gray.
“We care about what our customers say, listen to them carefully and relentlessly seek their satisfaction. We recognize our customers have demands, and it is our privilege to work with each of these demands. It is important that we work to improve lives, and make a difference to the community, Gray continues.
“I would also like to thank our 3,000-plus employees for the contribution they made over past years that enabled us to report a solid set of financial results for 2005/06. We should be proud of our achievements, he concludes.
FY 2005 Cash and Capital Investments
In response to questions on Vodafone Egypt’s Capital Investments for the fiscal year ending March 31, 2006, Gray explained that it totaled to approximately LE 4.3 billion, distributed among three areas: Payments due and paid to the governmental sector of LE 1.3 billion, network investments to develop and upgrade our network to match the standards of international networks with investments over LE 1.7 billion, in addition to dividend payout to shareholders, demonstrating the ongoing financial stability of Vodafone Egypt and to recognize the key role played by shareholders, profits distributed to shareholders equaled LE 1.32 billion in the financial year ending March 31, 2006. As a key shareholder in Vodafone Egypt, Telecom Egypt received LE 336 million of these distributed profits.
Gray confirmed that Vodafone is committed to a long-term presence in Egypt, demonstrated by its over LE 4 billion direct investment into the market and the opening of its new headquarters in Cairo. In addition, it provides 3,000 permanent jobs within Vodafone, as well as 15,000 job opportunities for its network of dealers, distributors, suppliers and retailers.
Future Market Conditions
Vodafone Egypt is confident that the future of telecommunications in Egypt is promising, with the market expected to enter a stable phase after years of rapid growth in customer numbers, which peaked last year.
The stability, Gray explains, is a result of increasing market penetration and new customer segments being acquired. However, Vodafone Egypt’s investment in new services and networks, supported by its investment into advanced technology, will enable it to maintain growth rates.
Gray explains that “Currently, Vodafone Egypt is able to service 99.5% of the populated area, with plans to expand our coverage area – a move that we believe will contribute to the growth of the country’s economy as a whole, and particularly the tourism sector. This strategy runs in line with our belief that mobile telecommunication is an essential part of a successful economy.
Predications for FY 2006
Vodafone Egypt is a strong advocate of competition in Egypt’s mobile market and, with the coming of a third operator in the country soon, the company is ready to challenge the latest market entrant.
“We always welcome new entries in the market as a positive influence and we are confident in our ability to compete against any organization in a fair and transparent market environment, says Gray.
Corporate Social Responsibility
The company confirmed that it continues to play an active role in a number of upcoming corporate social responsibility projects, as part of its commitment to the community. Alongside corporate commitment, employees are encouraged to engage in charity and in Vodafone Egypt Foundation’s projects. Vodafone foundation will be focusing on projects supporting educational development and enhancing children’s health. The company has allocated a related budget of LE 25 million to support these efforts.
Vodafone Egypt will also be a major corporate sponsor of up to 18 nationwide community centers and several programs aimed at Egypt’s growing youth segment. The efforts will facilitate the development of IT and communications centers in public schools and universities, and also constructive programs for the less gifted, such as handicapped athletes and the visually impaired.
“FY 2006 is set to be a banner year for Vodafone Egypt. From network infrastructure development to new service offerings to community outreach programs, we are demonstrating to all our stakeholders that we are a serious and committed contributor to the Egyptian economy. We thank our valued customers and shareholders for their unfailing commitment to our cause and look forward to further growth and progress throughout the year, concludes Gray.