EUR 236.14 For Business Accounts Only

9M 2016, Excellent progress

TE posted a very strong 9M 2016 top line performance with revenues up by 10.9% to EGP9.668bn, as the business converts back to TE’s core retail business stream. Overall, the wholesale services revenues (whose sales contribution reached 51.1% vs 54.5% in 9M 2015) recorded a slight increase by 3.9%, and were negatively impacted by the 8.4% drop in revenues from the International Carriers Affairs Business Unit. Indeed, the revenue performance at this business unit continues to be impacted negatively by the ongoing and growing illegal bypass activities and the use of Over-the-Top mobile applications. By contrast, Retail Services have recorded impressive revenue growth by 19.2%, thanks to a solid performance from, both, Home and Enterprise Services Units (+18.3 and +21.2%, yoy, respectively). Note that the Home Business Unit continued its trend to date of sustained growth driven by growing demand for data and broadband services with an increase by 40.6% in Data revenues from rising customer numbers (+28.5%), offsetting the decline in traditional national voice revenues (-9.8%). On the other hand, the Enterprise Services Unit was buoyed by increases in, both, Data and Voice revenues (+26.1% and +17.4%, respectively) supported by growth in subscriber numbers across both Fixed Line and ADSL.