reports
- Myriam CHAABOUNI
Excellent start to the year
TE posted a very strong Q1 2017 top line performance with revenues up by 36.7% to EGP4.191bn, driven by the strong demand for data services in the Retail segment and strong Domestic Wholesale demand and the realised effect of the currency flotation of the Egyptian pound on the diversified segments of the Wholesale lines of business that are hard currency intensive. Overall, the wholesale services’ revenues (whose sales contribution reached 56.6% vs.
- Myriam CHAABOUNI
Q4 2016, Unexpected brutal crash
TE posted a very strong FY 2016 top line performance with revenues up by 16% to EGP14.133bn, boosted by a healthy 28.9% increase in Q4 2016 revenues, which were driven by a significant demand for data services, both in retail services and through domestic wholesale business. Overall, the wholesale services revenues (whose sales contribution reached 53% vs. 55% in 2015) recorded an increase by 11.7%, and were supported by, both, domestic and international wholesale services with an increase in re...
- Sarah Shabayek
Drop to Neutral on proposed fixed broadband rate cuts
No visibility on TE’s direction and lack of major catalysts. There are question marks over when a permanent management team would be appointed and whether in the meantime, the government would intervene in TE’s strategy, starting with its proposal to offer discounts to mobile operators and on retail FBB rates. Talks about TE’s non-readiness for 4G, a delay of the mobile license, and a rumoured split of the company would all mean no sale of TE’s stake in VFE, eliminating a major stock catalyst.
- Alia El Mehelmy
Buy Vodafone, get TE for free
Market price post MSCI exclusion only reflects TE’s stake in Vodafone. Even without TE’s net cash (EGP2.9bn), investors at current market price would be buying TE’s stake in Vodafone (VFE) at a 2016e EV/EBITDA of 4.6x, in line with traded peers, and getting the fixed line for free. We value VFE at the same multiple but discount TE’s net cash to c45% in order to neutralize the MVNO’s destructive value of EGP1bn as well as the EGP0.8bn TE will owe on the implementation of a recent interconnect rul...
- Sarah Shabayek
Ministry of Communication meeting insights
Maintain estimates and Neutral rating. Insights from our meeting with the minister on 8 June reveal that our wholesale revenue estimates published 3 June 2015 are conservative, as mobile operators commit to a minimum bill to compensate for lower prices. However, FBB price cuts would lead to a larger-thanexpected drop in retail revenue, neutralising the impact of higher transmission revenue. TE Data’s inability to use TE’s distribution network could lead to a miss on FBB net adds. We maintain our...
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.