Q2 2026 Telecom Egypt Co SAE Earnings Call

August 13, 2026

[Analyst] (HC Brokerage): Tamer El-Mahdi, Managing Director and CEO. Wael Hanafy, CFO. Hind Ebeid, Strategy Senior Director. Ahmed El Gharabawy, Investment Director. Ehab Shoeib, Investor Relations Manager. The session will start with a brief overview by management, followed by Q&A session. I now hand the floor to Ehab Shoeib, the Investor Relations Manager.

Speaker #1: Omar El Mahdy, Managing Director and CEO; Wael Hanafy, CFO; Henda Obeid, Strategy Senior Director; Ahmed El Gharbawy, Investment Director; Ihab Shoeib, Investor Relations Manager. The session will start with a brief overview by management, followed by a Q&A session.

Speaker #1: I now hand the floor to إيهاب شعيب, the Investor Relations Manager.

Speaker #2: Thank you, Named, and thanks to HC Brokerage for hosting this quarter's conference call. Earlier today, we released our financial and operational results for the first half of 2026. Kindly note that the results presentation is available on our IR website: ir.te.eg.

Ehab Shoeib: Thank you, Navat, and thanks to HC Brokerage for hosting this quarter's conference call. Earlier today, we released our financial and operational results for H1 2026. Kindly note that the results presentation is available on our IR website, ir.te.eg, under the quarterly results section of the financial information tab. We will start with a briefing on the key highlights of the period presented by our CEO, Mr. Tamer El-Mahdi, followed by more details on our financial performance to be presented by our CFO, Mr. Wael Hanafy. After that, the floor will be open to your questions. Before we begin our discussion today, please allow me to read out the following disclaimer. The information and opinions on this call provided as of today's date are based on general information gathered at such date and are subject to change without notice.

Speaker #2: Under the Quarterly Results section of the Financial Information tab, we will start with a briefing on the key highlights of the period, presented by our CEO, Mr. Temir El Mehdi.

Speaker #2: Followed by more details on our financial performance to be presented by our CFO, Mr. Wei El Hanafi. After that, the floor will be open to your questions.

Speaker #2: Before we begin our discussion today, please allow me to read out the following disclaimer. The information and opinions on this call, provided as of today's date, are based on general information gathered as of such date and are subject to change without notice.

Speaker #2: None of the future projections, expectations, estimates, or prospects discussed on this call should be taken as forecasted or promises. Such forward-looking statements contain known and unknown risks, uncertainties, and other important factors that may cause the company's actual results to be materially different from future results.

Ehab Shoeib: None of the future projections, expectations, estimates, or prospects discussed on this call should be taken as forecasts or promises. Such forward-looking statements contain known and unknown risks, uncertainties, and other important factors that may cause the company's actual results to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Without further delay, I will now hand over the call to Mr. Tamer El-Mahdi.

Speaker #2: Performance or achievements expressed or implied by such forward-looking statements. Without further delay, I will now hand over the call to Mr. Temir El Mehdi.

Speaker #3: Thank you, Ehab. Good afternoon, everyone, and thank you for joining us. Telecom Egypt is one of the largest and most diversified telecommunications operators in the Middle East and Africa.

Tamer El Mahdi: Thank you, Ehab. Good afternoon, everyone, and thank you for joining us. Telecom Egypt is one of the largest and most diversified telecommunication operators in the Middle East and Africa. With a heritage spanning more than 170 years and a unique strategic position at the intersection of region domestic digital infrastructure and some of the world's most important international telecommunication routes. Over the course of its history, Telecom Egypt has continuously evolved its business model to respond to changing customer needs, technological development, and market dynamics. Today, the group operates across six principal revenue streams, including consumer, enterprise, outsourcing, international subsea cable, international carrier, and domestic wholesale. At the end of 2025, the board of directors approved Telecom Egypt's five-year business plan, establishing a clear strategic roadmap for the group's next phase of growth.

Speaker #3: With a heritage spanning more than 170 years and a unique strategic position at the intersection of Egypt's domestic digital infrastructure and some of the world's most important international telecommunication routes.

Speaker #3: Over the course of its history, Telecom Egypt has continuously evolved its business model to respond to changing customer needs, technological developments, and market dynamics.

Speaker #3: Today, the group operates across 6 principal revenue streams, including consumer, enterprise, outsourcing, international subsea cable, international carrier, and domestic wholesale. At the end of 2025, the board of directors approved Telecom Egypt's 5-year business plan, establishing a clear strategic roadmap for the group's next phase of growth.

Speaker #3: Our strategy is centered on two complementary priorities: maximizing the value and growth potential of our existing business, while developing a new revenue stream that further diversifies Telecom Egypt's earnings base.

Tamer El Mahdi: Our strategy is centered on two complementary priorities: maximize the value and growth potential of our existing business while developing new revenue streams that further diversify Telecom Egypt earning base. The approach is designed to build an increasingly robust, resilient, and future-ready business capable of navigating rapid changes in the global macroeconomics environment while capturing the significant opportunities being created by the accelerating evolution of telecommunication technologies, digital infrastructure, and technology-enabled services. Consistent with this strategy, the board announced in July that Telecom Egypt does not intend to divest its data center business. On the contrary, we view data center and associated digital infrastructures as a strategically important growth platform for the group. Accordingly, Telecom Egypt has established a separate legal entity, 100% owned by Telecom Egypt, dedicated to spearhead the development of our data center business as the group's seventh strategic revenue stream.

Speaker #3: The approach is designed to build an increasingly robust, resilient, and future-ready business capable of navigating rapid changes in the global macroeconomics environment, while capturing the significant opportunities being created by the accelerating evolution of telecommunication technology's digital infrastructure and technology-enabled services.

Speaker #3: Consistent with this strategy, the Board announced in July that Telecom Egypt does not intend to divest its data center business. On the contrary, we view data center and associated digital infrastructures as a strategically important growth platform for the group.

Tamer El Mahdi: On the contrary, we view data center and associated digital infrastructures as a strategically important growth platform for the group. Accordingly, Telecom Egypt has established a separate legal entity, 100% owned by Telecom Egypt, dedicated to spearhead the development of our data center business as the group's seventh strategic revenue stream. Establishing a dedicated entry provides the business with the operational and management flexibility required to compete efficiently in a sector characterized by rapid evolving technology, customer requirements, investment structure, and business models.

Speaker #3: Accordingly, Telecom Egypt has established a separate legal entity, 100% owned by Telecom Egypt, dedicated to spearheading the development of our data center business as the group's seventh strategic revenue stream.

Speaker #3: Establishing a dedicated entity provides the business with the operational and management flexibility required to compete efficiently in a sector characterized by rapid evolving technology, customer requirements investment structure, and business models.

Tamer El Mahdi: Establishing a dedicated entry provides the business with the operational and management flexibility required to compete efficiently in a sector characterized by rapid evolving technology, customer requirements, investment structure, and business models. At the same time, it allows the new business to leverage the substantial infrastructure, connectivity, customer relationship, and institutional capabilities of the wider Telecom Egypt group. We believe Telecom Egypt is exceptionally well-positioned to become a leading data center and digital infrastructure player, not only in Egypt but across the broader African and regional markets. Within Egypt, this competitive advantage is underpinned by Telecom Egypt extensive national backbone and transmission infrastructure, providing the ability to connect locations across the country with significant speed, capacity, and resilience. Our infrastructure footprint includes more than 1,500 central office locations distributed across Egypt, providing a unique foundation upon which a distributed and scalable digital infrastructure platform can be developed.

Speaker #3: At the same time, it allows the new business to leverage the substantial infrastructure, connectivity, customer relationships, and institutional capabilities of the wider Telecom Egypt Group.

Tamer El Mahdi: At the same time, it allows the new business to leverage the substantial infrastructure, connectivity, customer relationship, and institutional capabilities of the wider Telecom Egypt group. We believe Telecom Egypt is exceptionally well-positioned to become a leading data center and digital infrastructure player, not only in Egypt but across the broader African and regional markets. Within Egypt, this competitive advantage is underpinned by Telecom Egypt extensive national backbone and transmission infrastructure, providing the ability to connect locations across the country with significant speed, capacity, and resilience. Our infrastructure footprint includes more than 1,500 central office locations distributed across Egypt, providing a unique foundation upon which a distributed and scalable digital infrastructure platform can be developed.

Speaker #3: We believe Telecom Egypt is exceptionally well-positioned to become a leading data center and digital infrastructure player, not only in Egypt but across the broader African and regional markets.

Speaker #3: Within Egypt, this competitive advantage is underpinned by Telecom Egypt's extensive national backbone and transmission infrastructure. Providing the ability to connect locations across the country with significant speed, capacity, and resilience, our infrastructure footprint includes more than 1,500 central office locations distributed across Egypt, providing a unique foundation upon which distributed and scalable digital infrastructure platforms can be developed.

Speaker #3: Our domestic strength is complemented by an equally distinctive international position. Telecom Egypt's extensive subsea cable infrastructure places Egypt at the heart of the global telecommunication routes connecting Europe, Asia, and Africa.

Tamer El Mahdi: Our domestic strength is complemented by an equally distinctive international position. Telecom Egypt extensive subsea cable infrastructure places Egypt at the heart of the global telecommunication routes connecting Europe, Asia, and Africa. Our infrastructure carries more than 90% of international traffic transiting between Europe and Asia, and between Europe and Africa. The combination of extensive domestic connectivity, international subsea infrastructure, strategic geographical, and long-standing relationship with global carriers and technology partners provide Telecom Egypt with a differentiated platform. From which to capture the rapidly expanding demand for data center capacity, cloud connectivity, and broader digital infrastructure services. Infrastructure modernization represents another central pillar of the five-years business plan approved at the end of 2025. Telecom Egypt is undertaking a comprehensive transformation of the access technologies through which we serve our customers.

Speaker #3: Our infrastructure carries more than 90% of international traffic transiting between Europe and Asia and between Europe and Africa. The combination of extensive domestic connectivity, international subsea infrastructure, strategic geographical and long-standing relationships with global carriers, and technology partners provides Telecom Egypt with a differentiated platform from which to capture the rapidly expanding demand for data center capacity, cloud connectivity, and broader digital infrastructure services.

Speaker #3: Infrastructure modernization represents another central pillar of the 5-year business plan approved at the end of 2025. Telecom Egypt is undertaking a comprehensive transformation of the access technologies through which we serve our customers.

Speaker #3: In fixed broadband, our objective is to accelerate the deployment of fiber-to-the-home FTTH and progressively transition our access network from legacy copper infrastructure toward a more advanced fiber-based architecture.

Tamer El Mahdi: In fixed broadband, our objective is to accelerate the deployment of fiber to the home, FTTH, and progressively transition our access network from legacy copper infrastructure towards a more advanced fiber-based architecture. In mobile, we are similarly focused on maximizing the development and utilization of 5G technology, creating the network capacity and technological foundation required to support the next generation of consumer enterprise and digital services. Importantly, our strategy extends well beyond connectivity. Across consumer, enterprise and wholesale markets, we intend to progressively expand Telecom Egypt role across the digital value chain by developing services and complement our connectivity capabilities and deepen our relationship with our customers. This evolution is fundamental to our ambition of transforming Telecom Egypt from a traditional telecommunication operator into a broader digital infrastructure and technology services.

Speaker #3: In mobile, we are similarly focused on maximizing the development and utilization of 5G technology creating the network capacity and technological foundation required to support the next generation of consumer enterprise and digital services.

Speaker #3: Importantly, our strategy extends well beyond connectivity. Across consumer enterprise and wholesale markets, we intend to progressively expand Telecom Egypt's role across the digital value chain by developing services and complementing our connectivity capabilities and deepening our relationship with our customers.

Speaker #3: This evolution is fundamental to our ambitious goal of transforming Telecom Egypt from a traditional telecommunications operator into a broader digital infrastructure and technology services group.

Speaker #3: The result achieved during the first half of 2026 provides strong evidence that the strategic direction adopted at the end of 2025 is translated into tangible operational and financial outcomes.

Tamer El Mahdi: The results achieved during H1 2026 provide strong evidence that the strategical direction adopted at the end of 2025 is translated into tangible operational and financial outcomes. During H1 2026, Telecom Egypt delivered a performance that demonstrates not only the strength of our market position, but importantly, the quality of our execution and increasing efficiency of our operational model. Revenue increased by 17.4% year-on-year to reach EGP 92.2 billion, representing an increase of approximately EGP 8.8 billion compared to H1 2025. More importantly, EBITDA grew at a faster rate than revenue, increasing by 20% to EGP 26.4 billion. An improvement of approximately EGP 4.5 billion. As a result, our EBITDA margin expanded to reach 45% compared to 44% in H1 2025. This operating leverage is particularly sufficient.

Speaker #3: During the first half of 2026, Telecom Egypt delivered a performance that demonstrates not only the strength of our market position but, importantly, the quality of our execution and increasing efficiency of our operational model.

Speaker #3: Revenue increased by 17.4% year-on-year to reach 92.2 billion Egyptian pounds representing an increase of approximately 8.8 billion compared to the first half of 2025.

Speaker #3: More importantly, EBITDA grew at a faster rate than revenue, increasing by 20% to 26.4 billion Egyptian pounds, an improvement of approximately 4.5 billion Egyptian pounds as a result.

Speaker #3: Our EBITDA margin expanded to reach 45% compared to 44% in the first half of 2025. This operating leverage is particularly sufficient; it demonstrates that Telecom Egypt is not simply generating additional revenue but is increasingly converting that growth into profitability through disciplined cost management and strong execution across the organization.

Tamer El Mahdi: It demonstrates that Telecom Egypt is not simply generating additional revenue, but is increasingly converting that growth into profitability through disciplined cost management and strong execution across the organization. The progression is even more pronounced at the bottom line, where net profit increased by 47% year-on-year to reach EGP 15.4 billion, representing an increase of approximately EGP 4.9 billion compared with H1 2025, and materially outpacing both revenue and EBITDA growth. Consequently, our net profit margin expanded by 5 percentage points to reach 26% from 21% in H1 2025. Importantly for our shareholders, this improvement in earning is also translating into a stronger cash generation. Free cash flow to the firm reached EGP 10 billion versus EGP 8.1 billion in H1 2025, representing an improvement of EGP 1.9 billion or approximately 24.3%.

Speaker #3: The progression is even more pronounced at the bottom line, where net profit increased by 47% year-on-year to reach EGP 15.4 billion, representing an increase of approximately EGP 4.9 billion compared with the first half of 2025, and materially outpacing both revenue and EBITDA growth.

Speaker #3: Consequently, our net profit margin expanded by 5 percentage points to reach 26%, from 21% in the first half of 2025. Importantly, for our shareholders, this improvement in earnings is also translating into stronger cash generation. Free cash flow to the firm reached 10 billion Egyptian pounds versus 8.1 billion in the first half of 2025.

Speaker #3: Representing an improvement of 1.9 billion Egyptian pounds or approximately 24.3%, while free cash flow to EBITDA also improved to 38%. Further demonstrating the increasing cash-generating capability of the business.

Tamer El Mahdi: While free cash flow to EBITDA also improved to 38%, further demonstrating the increasing cash-generating capability of the business. The quality of these results is reinforced by breadth of underlying growth. Our performance is not depending upon a single product, customer segment or revenue stream. Rather, we continue to serve strong momentum across several of Telecom Egypt core businesses. Consumer revenue increased by 24% year-on-year. Enterprise revenue increased 16% year-over-year. Domestic wholesale revenue increased 20% year-over-year. International carrier revenue increased 26% year-over-year. This financial momentum has been supported by continued expansion in network utilization and customer demand. Average mobile and fixed broadband traffic increased, and international call volume increased by 18.1%.

Speaker #3: The quality of these results is reinforced by breadth of underlying growth. Our performance is not depending upon a single product. Customer segment or revenue stream, rather, we continue to serve strong momentum across several of Telecom Egypt's core businesses.

Speaker #3: Consumer revenue increased by 24% year-on-year, enterprise revenue increased 16% year-over-year, domestic wholesale revenue increased 20% year-over-year, international carrier revenue increased 26% year-over-year. This financial momentum has been supported by continued expansion and network utilization and customer demand.

Speaker #3: Average mobile and fixed broadband traffic increased, and international call volume increased by 18.1%. These indicators reinforce our confidence that the underlying demand for connectivity and digital services remains strong, and that Telecom Egypt possesses the infrastructure, customer relationships, and operational capabilities required to translate this demand into sustainable, long-term growth.

Tamer El Mahdi: These indicators reinforce our confidence that the underlying demand for connectivity and digital service remains strong and that Telecom Egypt possesses the infrastructure, customer relationship, and operational capabilities required to translate this demand into sustainable long-term growth. Taken together, our H1 2026 results tell a clear and encouraging story. Telecom Egypt is growing revenue, converting that growth into faster EBITDA expansion, translating operating performance into sustainable, stronger profitability, and ultimately converting earnings into higher free cash flow. This is precisely the progression we seek to achieve through our five-year strategy. At the same time, we recognize that our transformation is still at the early stage. Our objective extends beyond delivering a strong result in any single reporting period. We are building a Telecom Egypt that is structured, more diversified, technologically more advanced, operationally more efficient, and financially more resilient. Our established business provides us with a strong foundation.

Speaker #3: Taken together, our first-half 2026 results tell a clear and encouraging story. Telecom Egypt is growing revenue, converting that growth into faster EBITDA expansion, translating operating performance into sustainable, stronger profitability, and ultimately converting earnings into higher free cash flow.

Speaker #3: This is precisely the progression we seek to achieve through our five-year strategy. At the same time, we recognize that our transformation is still at an early stage. Our objective extends beyond delivering strong results in any single reporting period.

Speaker #3: We are building a Telecom Egypt that is structured, more diversified, technologically more advanced, operationally more efficient, and financially more resilient. Our established business provides us with a strong foundation; the expansion of FTTH and 5G will strengthen the foundation further.

Tamer El Mahdi: The expansion of FTTH and 5G will strengthen the foundation further. Our move beyond connectivity will increase our opportunities to deepen customer relationship and participate in higher value segments of the digital economy. The establishment of our dedicated data center platform represents an important step towards creating an additional engine of long-term growth. Few telecommunication groups combine Telecom Egypt's domestic infrastructure footprint, international subsea connectivity, strategic geographical position, and diversified customer base. Our responsibility is to translate these unique assets into sustainable value. As we execute the five-year business plan approved by our board, we will remain focused on disciplined investment, operational excellence, profitable growth, cash generation, and prudent capital allocation, with the ultimate objective of creating sustainable long-term value for our shareholders and our stakeholders. The H1 2026 represents an encouraging start to this journey.

Speaker #3: Our move beyond connectivity will increase our opportunity to deepen customer relationships and participate in higher-value segments of the digital economy. The establishment of our dedicated data center platform represents an important step toward creating an additional engine of long-term growth.

Speaker #3: Few telecommunication groups combine Telecom Egypt's domestic infrastructure footprint, international subsea connectivity, strategic geographical position, and diversified customer base. Our responsibility is to translate this unique asset into sustainable value.

Speaker #3: As we execute the five-year business plan approved by our Board, we will remain focused on disciplined investment, operational excellence, profitable growth, cash generation, and prudent capital allocation.

Speaker #3: With the ultimate objective of creating sustainable, long-term value for our shareholders and stakeholders, the first half of 2026 represents an encouraging start to this journey.

Speaker #3: We remain confident in Telecom Egypt's strategic direction and in our ability to build a stronger, more diversified, and increasingly valuable company for Egypt, our customers, and our shareholders.

Tamer El Mahdi: We remain confident in Telecom Egypt's strategical direction and in our ability to build a stronger, more diversified, and increasingly valuable company for Egypt, our customer, and our shareholders. With that, I have completed my brief, and I will now hand the call over to our CFO, Mr. Wael Hanafy.

Speaker #3: With that, I have completed my brief, and I will now hand the call over to our CFO, Mr. Wael Hanafi.

Speaker #1: Thank you, Mr. Kamil. And let me now take you through our Q2 2026 performance in more detail. Total revenue increased 21% year-over-year to reach 31 billion EGP.

Wael Hanafy: Thank you, Mr. Kamal. Let me now take you through our Q2 2026 performance in more detail. Total revenue increased 21% year-over-year to reach 31 billion EGP. Retail revenue grew 25%, while wholesale revenue increased 14%, reflecting broad-based growth across our main business lines. In retail, data revenue increased 30% year-over-year and contributed 65% of the total revenue growth. This was supported by the continued customer base expansion, higher data usage, and the initial benefits of the NTRA-approved price adjustments. In wholesale, IC&A was the main revenue driver, increasing 29% year-over-year, while domestic wholesale revenue grew 24%. This more than offset the 14% decline in IC&E revenue, which continued to reflect the cyclical decline in the cable project. We expect activity in this area to improve in the H2 of the year. The strength of our revenue performance translated into higher operating earnings.

Speaker #1: Retail revenue grew 25%, while wholesale revenue increased 14%, reflecting broad-based growth across our main business lines. In retail, data revenue increased 30% year-over-year and contributed 65% of the total revenue growth.

Speaker #1: This was supported by the continued customer base expansion, higher data usage, and the initial benefits of the NTRA-approved price adjustments. In wholesale, ICMA was the main revenue driver, increasing 29% year-over-year while domestic wholesale revenue grew 24%.

Speaker #1: This more than offset the 14% decline in ICMA revenue, which continued to reflect the cyclical decline in the KP project. We expect activity in this area to improve in the second half of the year.

Speaker #1: The strength of our revenue performance translated into higher operating earnings. EBITDA increased 24% year-over-year with the margin improved improving to 45% from 43% in Q2 2025.

Wael Hanafy: EBITDA increased 24% year-over-year with the margin improving to 45% from 43% in Q2 2025. The improvement reflected a strong revenue growth, operating leverage, and continued discipline in managing our cost base. Operating profit increased 32% year-over-year to 9 billion EGP with an operating margin of 30%, compared with 26% in Q2 2025. This reflected the stronger EBITDA performance, which offset the impact of 15% higher depreciation and amortization year-over-year. At the bottom line, net profit reached 11.8 billion EGP, increasing by 100% year-over-year and representing a 38% margin. The improvement was supported by the stronger operating performance, 52% year-over-year higher income from Vodafone, and lower interest expense of 2.5 billion, compared with 3.4 billion in Q2 2025. Overall, Q2 demonstrates the strength of our operating model with growth across our key revenue streams, improved EBITDA margins, and a significant increase in net profit.

Speaker #1: The improvement reflected strong revenue growth, operating leverage, and continued discipline in managing our cost base. Operating profit increased 32% year-over-year to EGP 9 billion, with an operating margin of 30%, compared with 26% in Q2 2025.

Speaker #1: This reflected the stronger EBITDA performance, which offset the impact of 15% higher depreciation and amortization year-over-year. At the bottom line, net profit reached EGP 11.8 billion, increasing by 100% year-over-year and representing a 38% margin.

Speaker #1: The improvement was supported by stronger operating performance, 52% year-over-year higher income from Vodafone, and lower interest expense of $2.5 billion compared with $3.4 billion in Q2 2025.

Speaker #1: Overall, Q2 demonstrates the strength of our operating model with growth across our key revenue streams improved EBITDA margins and a significant increase in net profit overall.

Wael Hanafy: Overall, these results highlight our ability to beat our targets. With that, I have reached the end of my comments. We are now ready to open the floor for the Q&A session. Thank you.

Speaker #1: These results highlight our ability to beat our targets. With that, I have reached the end of my comments. We are now ready to open the floor for the Q&A session.

Speaker #1: And thank you.

Speaker #2: We now open the floor for questions. If you wish to ask a question, please raise your hand to speak directly to management or type your question in the Q&A box.

[Analyst] (HC Brokerage): We now open the floor for questions. If you wish to ask a question, please raise your hand to speak directly to management or type your question in the Q&A box. We will pause for a moment to allow our participants to prepare their questions. Until we receive questions from our participants, I would like to address one of my questions. Can you please tell us a bit about the implications of the cancellation of the deal on Telecom Egypt's deleveraging plans or future dividend distributions?

Speaker #2: We will pause for a moment to allow our participants to prepare their questions. Until we receive questions from our participants, I would like to address one of my questions.

Speaker #2: Can you please tell us a bit about the implications of the cancellation of the deal on Telecom Egypt's deleveraging plans and or future dividend distributions?

Speaker #1: Okay, let me take it. Let me take it. You know, as has been said by Mr. CEO, there is no implication from the cancellation of the deal.

Wael Hanafy: Okay, let me take it. As has been said by Mr. CEO, there is no implication of the cancellation of the deal. On the contrary, the strategic direction that we have right now for the data center will support us by big time, and definitely we will rebound back, reflect back to increasing our returns and our cash, and definitely we will return back to our dividend to our shareholder. This is on the contrary. As I told you, there is no impact for not to conclude the transaction, but maintaining the assets, we return back with more benefit rather than concluding that transaction.

Speaker #1: On the contrary, the strategic direction that we have right now for the data center will support us by big time. And definitely, we're rebound back our reflect back to increasing our returns and our cash, and definitely we'll return back to our dividend to our shareholder.

Speaker #1: This is on the contrary. So as I told you, there is no impact for the not to conclude that the transaction, but maintaining the asset will return back much with more and more benefit rather than concluding the transaction.

Speaker #2: Okay, thank you. We have a question from Sarah Amr. She's asking about the net debt position, which reached EGP 73 billion compared to EGP 76 billion last quarter.

[Analyst] (HC Brokerage): Okay. Thank you. We have a question from Sara Amr. She is asking regarding the net debt position that it reached EGP 73 billion compared to EGP 76 billion last quarter. Is that mainly due to FX?

Speaker #2: Is that mainly due to FX?

Speaker #1: No, no, definitely not. It's related to the payment that we've done over our our debt. So it's just a repayment of our balance principal balances of our debt.

Wael Hanafy: No, definitely not. It is related to the payment that we have done over our debt. It is just a repayment of our principal balances of our debt.

Speaker #2: Okay. Thank you. Karol Bebawi is asking, can you share an updated guidance for 2026 revenue and net income?

[Analyst] (HC Brokerage): Okay. Thank you. Carol Bebawi is asking, can you share an updated guidance for 2026 revenue and net income?

Wael Hanafy: Our guidance that we shared with you at the beginning of this year for the revenue is to increase with the high single digit, but definitely we will beat that because after the price adjustments have been approved by NTRA, definitely we expect it to be in the range of maybe 15% increase year-over-year of our revenues. For the EBITDA, the EBITDA that we shared at the beginning of this year, it was early 40s, now we are 45. So we will try to maintain the 45 to the end of this year. For the cash, the CapEx early 20s. So we are going to maintain in the range of 23 to 25 of this.

Speaker #1: Yeah. Our guidance that we shared with you at the beginning of this year for the revenue is to increase with the high single digit, but definitely we will beat that because after the the price objects have been approved by NTRA, definitely we're we expect it to be in the range of the from maybe 15% increase year-over-year of our of our revenues.

Speaker #1: For the EBITDA, the EBITDA that we shared at the beginning of this year, it was early 40s. Now we are 45. So we'll try to maintain the 45 to the end of this year.

Speaker #1: For the cash, the capex early 20s. So we are going to maintain in range of 23 to 25 of sales.

Speaker #3: For free cash flow to EBITDA, we shared with you at the beginning of the year at May 30, and we are online with this percentage and we believe that we could improve it to much better at the year end.

Tamer El Mahdi: For free cash flow, Dana, we shared with you at the beginning of the year at maturity, and we are on line with this percentage, and we believe that we could improve it much better at the year end.

Speaker #2: Okay. Thank you. Tina Shehuf is congratulating you on the results and asking, can you give us your view on the medium-term prospects for the cable project business and which seems to be going backwards?

[Analyst] (HC Brokerage): Okay. Thank you. Tina Shehoof is congratulating you on the results and asking, can you give us your view on the medium-term prospects for the cable project business, which seems to be going backwards?

Speaker #1: Okay. Let me take this one. You know, you know what have been done over the last two, three years for the turbulence and the and what and what we've seen in the watch away around us.

Wael Hanafy: Okay, let me take this one. You know what have been done over the last 2, 3 years for the turbulence and what we have seen in the waterway around us. But definitely we are focusing on this kind of businesses and kind of project because we know how much is significant for Telecom Egypt. And we did a lot of actions here and there to overcome this kind of headwinds, if I can say it like this. But definitely, as I am telling you all the time, that this kind of projects or revenues is based on the nature of this kind of services is cyclical, based on the fulfillment and the delivery of the services to our customers. Yes, there is some sort of fluctuation from quarter to another, maybe from 2 quarters to another 2 quarters, but we are adding more focus on this.

Speaker #1: But definitely we are focusing on this kind of businesses and kind of project because we know the the how how much is significant for Telecom Egypt.

Speaker #1: And we did a lot of actions here and there to overcome these kinds of headwinds, if I can say it like this.

Speaker #1: But definitely this kind as I'm telling you all all the time that this kind of project or revenues is based on the the nature of this kind of services is cyclical based on the the the fulfillment and the delivery of the services to our customers.

Speaker #1: Yes, there is some sort of fluctuation from quarter to another, maybe from two quarters to another two quarters. But we are adding more focus on this that's why we are focusing to build a new infrastructure in Sinai.

Wael Hanafy: That is why we are focusing to build a new infrastructure in Sinai, in Sinora, building new cables that connect the Egyptian territory with our neighbor from the Gulf countries in order to try to make another route that overcome the distortion that we see on the traditional routes. We believe the benefit for Telecom Egypt would be that we will see it in the near future. As per our expectation and calculation for this segment, there will be a good number to be recorded in the H2 of this year for the 2026 and also for the next year, 2027.

Speaker #1: Building new cables that connect the Egyptian territory with our neighbors from the Gulf countries, in order to try to create alternate routes that overcome the distortion we see on the traditional routes.

Speaker #1: And we believe this will be the benefit for Telecom Egypt; we will see it in the near future. And as per our expectation, our calculation for this segment, there will be a good number to be recorded in the second half of this year for 2026.

Speaker #1: And also for the next year, 2027.

Speaker #4: Just add to what Wael have have said to reconfirm we are we have developed a new strategy for the subsea cable. We're working very diligently on it.

Tamer El Mahdi: Just add to what Wael has said to reconfirm, we have developed a new strategy for the subsea cable. We are working very diligently on it in order to rectify the situation, or at least be able to mitigate the situation which have been impacting the whole region. We are going to be very clear before the end of the year, the result of the implementation of this strategy. We are moving and working very diligently on this, and we will be able to report on new projects within the next H2 of the year.

Speaker #4: In order to rectify the situation, or at least be able to mitigate the situation which has been impacting the whole region, we are going to be very clear before the end of the year about the result of the implementation of this strategy.

Speaker #4: So we are moving and working very diligently on this, and we will be able to report on new projects within the next half of the year.

Speaker #2: Okay. Thank you. Dina Mustafa is asking how much FX gains were achieved during second Q26.

[Analyst] (HC Brokerage): Okay. Thank you. Dina Mustafa is asking how much FX gains were achieved during Q2 2026.

Speaker #1: Okay. Let me at the beginning give you like a brief for what has been recorded in the first quarter, you know, when the the US dollar appreciated against the Egyptian pound in the first quarter, we recorded like 5.3 billion as a FX losses.

Wael Hanafy: Okay. Let me at the beginning give you a brief for what has been recorded in the first quarter. When the USD appreciated against the Egyptian pound in the first quarter, we recorded EGP 5.3 billion as FX losses. But in Q2, when the Egyptian pound rebounded significant part of what he lost over Q1, that enabling us to record EGP 3.3 billion FX gain in Q2. So if we are talking about the FX we achieved during Q2, it is EGP 3.3 billion. But for the whole edge, it is still EGP 1.9 billion FX loss.

Speaker #1: But in the quarter two, when the the Egyptian pound rebounded significant part of what he lost over the quarter one, that enabling us to to record like 3.3 FX gain in a quarter two.

Speaker #1: So if we are talking about the FX were achieved during quarter two, is 3.3 billion Egyptian pound. But for the whole edge, it's still 1.9 FX losses.

Speaker #2: Okay. Thank you. Adrian is asking what specific cost savings enhanced margins the most. What proportion we can take them one by one. What specific cost savings enhanced margins the most?

[Analyst] (HC Brokerage): Okay, thank you. Adrian is asking what specific cost savings enhanced margins the most? We can take them one by one. What specific cost savings enhanced margins the most?

Wael Hanafy: We are working on a lot kind of expenses that we have. The majority of the expense we are incurring is the employees expenses. We are trying to contain this kind of expenses by many different ways. Also, another type of expenses that we are working on it, maybe the marketing activities, expenses that we are spending on it. Also the transportations here and there, and maybe small pieces here and there. We are doing a lot of initiatives. At the end of the day, it is combined all together, even with the small parts here and there, but it will combine with a big good savings in the cost structure.

Speaker #1: We're working on a lot of kinds of expenses that we have. The majority of the expense we are incurring is the employees' expenses.

Speaker #1: We are trying to contain this kind of expenses in many different ways. Also, another type of expenses that we are working on—maybe the Marcom activities expenses that we are spending on.

Speaker #1: Also the transportations here and there. Maybe small pieces here and there. We are doing a lot initiatives. At end of the day, it's combine all together with even with small parts here and there, but it would combine with the big good savings in the in the cost structure.

Speaker #2: Okay. And his second part of the question, what proportion of ETEL's current infrastructure is legacy copper versus fiber optic? And how long will this update process take?

[Analyst] (HC Brokerage): Okay, and his second part of the question, what proportion of Etisalat current infrastructure is legacy copper versus fiber optic, and how long will this update process take?

Speaker #1: Yeah. Now now we are 99% providing our service to our customers. On what we called MSAN technology, which is all the infrastructure is fiber except for what we call is the last mile, which is 20 maybe 200 or 500 meters from the last activity point till the the the home of our customers.

Wael Hanafy: Yeah. Now we are 99% providing our service to our customers on what we call MSAN technology, which is all the infrastructure is fiber except for what we call is the last mile, which is 20, maybe 200 or 500 meters from the last activity point at the home of our customers.

Speaker #2: Okay. Thank you.

[Analyst] (HC Brokerage): Okay. Thank you.

Speaker #1: What we call the last mile to the fiber. So if we are talking about the sizing, the sizing, now we reached like 2 million our customer on a FTTH compared to 11, maybe 11 or 12 customer on the fiber.

Wael Hanafy: What we call the last mile to the fiber. If we are talking about the sizing, now we reached 2 million our customer on FTTH compared to 11, maybe 11 or 12 customer on the fiber. The vision that we put in this regard for replacing all our customer from copper to the fiber, definitely it will take a lot of years because it is a nationwide initiative. But we have added more focus on this regard. As our five-year business plan, we try and we will achieve maybe by 2030 transforming more than 50% to 60% of the total base of Egypt customers from the old copper network to the fiber FTTH.

Speaker #1: The version that we put in this regard for replacing all our customers from copper to fiber definitely will take a lot of years.

Speaker #1: Because it's it's it's a nationwide initiatives. But we've we've we've added more more focus on this regard. And and as per our five year business plan, we trying and we will achieve maybe by 2030 transforming like more than 50% to 60% of the total base of Egypt customers from the old copper network to the fiber FTTH.

Speaker #4: So and and and in other words, currently the the the the percentage of FTTH in the in the network is about like around 17%.

[Analyst] (HC Brokerage): Okay.

Tamer El Mahdi: Currently, the percentage of FTTH in the network is around 17%. We have 1.9 million FTTH out of almost 11.5 or 12 million customers. The plan, as Mr. Hanafy said, is that we should evolve with a rollout plan to migrate and add new customers on the FTTH to exceed 50% within 2030.

Speaker #4: So, we have 1.9 million FTTH out of almost 11.5 or 12 million customers. The plan, as Mr. Hanafi said, is that we should evolve with a rollout plan to migrate and add new customers on the FTTH to exceed 50% within 2030.

Speaker #2: Okay, thank you. Henny Santoot is asking, your finance cost was positive 722 million during Q2 as per the financial statements. Can you give us some color on this line item?

[Analyst] (HC Brokerage): Okay, thank you. Hani Zantout is asking, your finance cost was +EGP 722 million during Q2 as per the financial statements. Can you give us some color on this line item?

Speaker #1: Yeah. Those are the factors behind the decrease in our debt balance from one quarter to another, and also the decrease in the interest rate. This is because there were many cuts that were made at the end of last year.

Wael Hanafy: Yeah, those are the decreasing of our debt balance from quarter to another, and also the decreasing on the interest rate because there's many cuts that have been done at the end of the last year. We are getting the benefit right now. This is the main driver for this positive impact of the finance cost.

Speaker #1: So we we are getting the benefit right now. This is the main driver for this positive impact of the finance cost.

Speaker #2: Okay. And his second part of the question, how should we think about DPS given first half performance?

[Analyst] (HC Brokerage): Okay, and his second part of the question, how should we think about DPS given H1 performance?

Wael Hanafy: This is one of the important things that we are focusing on it, and definitely with the outstanding performance for H1, that will continue to the full year. I think it should reflect in the good position of our dividend on the full year 2026. But I cannot tell you right now because we need to wait until the end of the year, and we can see our financial position, our cash position at the time of the dividend spending. But definitely, and we are very sure about that, we will still with the same strong position, and definitely our dividend will be much more higher, will be higher than what we have already used to distribute over the last two, three years.

Speaker #1: This is one of the important thing that we are focusing on it. And definitely with the with the outstanding performers for H1 and definitely that will continue to the full year.

Speaker #1: I think think it should be reflected in a good position of our dividend on the full year 2026. But I cannot tell you right now because we need to wait until the end of the year and we can see our financial position, our cash position and the time of this the dividend spending.

Speaker #1: But definitely and we are very sure about that. We will still with the same strong position and definitely our dividend will be much more higher.

Speaker #1: Will be higher than what we've already used to distribute over the last two or three years.

Speaker #2: Thank you. Johannes congratulating you on a great set of numbers and is asking can you tell us what's your plans are for the hosting and data center business?

[Analyst] (HC Brokerage): Thank you. Johan is congratulating you on a great set of numbers and is asking, can you tell us what your plans are for the hosting and data center business? And we need to continue the rest of it. How much CapEx will this require, and what kind of revenue and return on invested capital do you think this will generate in the medium term, say, three to five years?

Speaker #2: And we need to continue the rest. How much will CAPEX will this require and what kind of revenue and return on invested capital do you think this will generate in the medium term say three to five years?

Speaker #4: I mean the the the again as a as Telecom Egypt is investing wisely in its whether it's CAPEX or or OPEX our our strategy at at this moment is to keep on spending CAPEX in the range of 23 to 25% of the total.

Tamer El Mahdi: Again, as Telecom Egypt is investing wisely in its, whether it is CapEx or OpEx, our strategy at this moment is to keep on spending CapEx in the range of 23% to 25% of the total. So we are maintaining this. However, we are in the process of looking at number of projects and doing the feasibility studies, and based on the IRR and based on the payback period and the business model and the expansion that we see in this segment and what value can this create in terms of the evaluation of Telecom Egypt as this new subsidiary, then we are sort of evaluating and this is a segment which is evolving very fast. It is a segment where there is a lot of potential, and we are pursuing a number of opportunities.

Speaker #4: So we are maintaining this. However we are in the process of looking at number of projects and doing the feasibility studies and based on the IRR and based on the payback period and the business model and the the the the expansion that we see in this segment and what value can this create in terms of the valuation of of of Telecom Egypt as this new subsidiary then we will we are sort of evaluating and this is this is a a segment which is evolving very fast.

Speaker #4: It is a segment where there is a lot of potential, and we are pursuing a number of opportunities. The RDH2 will start its operations very soon, within the next month or two.

Tamer El Mahdi: The RDH 2 will start its operational very soon, within the next month or two. We were able to improve the, let us say, the profitability of the RDH 2 considerably compared to RDH 1. Having said this, we are currently assessing and looking at number of options with number of opportunities, and this will evolve as we go. But as we currently speak, our strategy is to grow with 23% to 25% across all businesses in terms of CapEx.

Speaker #4: We were able to improve, let's say, the profitability of the RDH2 considerably compared to RDH1. Having said this, we are currently assessing and looking at a number of options with a number of opportunities, and this will evolve as we go.

Speaker #4: But as we currently speak our strategy is to go with 203 to 25% across all businesses in terms of CAPEX.

Speaker #2: Thank you. Yahya Zaki is asking, since to proceed from the data center part of the usage deal was to settle part of that, how would you deal now with that?

[Analyst] (HC Brokerage): Thank you. Yehia Zaki is asking, since the proceed from the data center part of usage deal was to settle part of debt, how would you deal now with debt? I think you kind of answered part of this question. He is saying, especially if the CBE raised interest rates and how sensitive interest expense is to every 1% increase in interest. Maybe the second part on the interest is-

Speaker #2: And I think you kind of answered part of this question. And and but he's saying especially if the CBE raised interest rates and how sensitive interest interest expense is to every one percentage increase in interest.

Speaker #2: So maybe the second part on on the interest is

Wael Hanafy: Let me answer the second half of the question, because definitely the Mr. CEO answered the first half many times. For the second part of the questions, thanks to our organic growth for the local services that we provide and the international service also that we provide, and thanks to the price adjustments that have been done by NTRA. All this kind of tailwinds, if I may, support us to settle our debt as per our expectations. We believe there is no impact at all. If I combine one of the questions you are asking for, what about the deleveraging and what Telecom Egypt cash position with-

Speaker #1: Let me answer the second half of the question, because definitely Mr. CEO answered the first half many times. For the second part of the question, thanks to our organic growth for the local services that we provide, and the international services also that we provide, and thanks to the price adjustment that has been done by NGRA.

Speaker #1: So all this kind of tailwinds if I if I may support us to to settle our debt as per our expectations and we believe and we believe there is no impact at all and if I if I if I compile one of the questions he asking for what about the deleveraging and what what what Telecom Egypt cash position with.

[Analyst] (HC Brokerage): Wael, we cannot hear you well now. It seems that we have a connectivity issue. We cannot hear you well. Mr. Tamer, do you want to take this question until Wael is back? Can you hear me?

Speaker #2: Wael we can't hear you well now. Seems that we have a connectivity issue. We can't hear you well. Can Mr. Tamer, do you want to take this question until Wael is back?

Speaker #2: Can you hear me?

Tamer El Mahdi: Hello.

Speaker #4: And I know.

Speaker #2: Yes. You're back.

[Analyst] (HC Brokerage): Yes. You are back?

Speaker #4: I I know. Can can you can you hear me?

Tamer El Mahdi: Hello. Can you hear me?

Speaker #2: Yes. I can hear you now.

[Analyst] (HC Brokerage): Yes, I can hear you now.

Speaker #4: Okay.

Tamer El Mahdi: Okay.

Speaker #2: Okay. Yahya's question on the interest rate and then we lost So we were discussing you during the your answer. So can you?

[Analyst] (HC Brokerage): Okay. We were discussing Yehia Zaki's question on the interest rate, then we lost you during your answer. Can you

Speaker #4: In in in I think maybe Wael can continue the answer of this question. When he comes back because I I think I think he will he'll be more capable of answering the interest rate question.

Tamer El Mahdi: I think maybe Wael Hanafy can continue the answer of this question when he comes back, because I-

[Analyst] (HC Brokerage): Okay

Tamer El Mahdi: I think he will be more capable of answering the interest rate question.

Speaker #2: Sure. We can move to the following one. Karol Bebewi has a follow-up. She's asking could you share the pace of deleveraging and if Telecom Egypt is expected to reach a net cash position?

[Analyst] (HC Brokerage): Sure. We can move to the following one. Carol Bebawi has a follow-up. She is asking, could you share the pace of deleveraging and if Telecom Egypt is expected to reach a net cash position?

Speaker #4: I I actually we are we are performing very well on on on on the deleveraging front. As you have can see from the from the numbers that we have achieved we are now sitting at 1.2 times down from 1.6 times.

Tamer El Mahdi: Actually, we are performing very well on the deleveraging front. As you can see from the numbers that we have achieved, we are now sitting at 1.2x, down from 1.6x. We are moving very well in this direction. The ratio of the free cash flow to EBITDA is at 38%. As I mentioned, debt to EBITDA, we are now sitting at 1.2x versus 1.6x, which was the case by the end of Q1 2025.

Speaker #4: So we are we are moving very very well in this direction. The the the ratio of the free cash flow to EBITDA is now is at 38% and as as I mentioned that to EBITDA we are now sitting at 1.2 times versus 1.6 times which was the case by the end of the first quarter 2025.

Speaker #2: Okay. Thank you. Let's I'm checking if Tamer is back. Can can you hear us now Tamer?

[Analyst] (HC Brokerage): Okay. Thank you. I am checking if Tamer is back. Can you hear us now, Tamer?

Speaker #4: You mean Wael? I'm I'm me Tamer. I'm.

Tamer El Mahdi: You mean Wael? Me, Tamer. I am on.

[Analyst] (HC Brokerage): I am sorry. I am so sorry. Wael, are you back?

Speaker #2: Oh, sorry. I'm sorry. I'm so sorry. Wael Wael are you back?

Speaker #4: Okay. And Telecom Egypt I'm sorry about.

Wael Hanafy: Okay. Telecom Egypt, so I am sure about Wael.

Speaker #2: Sorry for this. I got confused because of the technical issues.

[Analyst] (HC Brokerage): Sorry for this. I got confused because of the technical issues.

Speaker #4: No. Don't worry.

Tamer El Mahdi: Don't worry.

[Analyst] (HC Brokerage): Okay.

Speaker #2: Okay.

Speaker #4: Maybe with I'll I'll I'll I'll see if the because I'm not in the same location.

Tamer El Mahdi: I'll see if the Because I'm not in the same location.

[Analyst] (HC Brokerage): Okay. Let's move to the following question until they return. Can we make the judgment that the EGP 6.7 billion gains from Vodafone in Q2 2026 include FX gains there as well? Meanwhile, could you share your guidance for CapEx in 2026? I think you kind of shared the guidance in terms of percentage.

Speaker #2: Okay. Okay. Okay. Let's move to the following question until they return. Can we make the judgment that the 6.7 billion gains from Vodafone in second Q26 include FX gains there as well?

Speaker #2: And meanwhile could you share your guidance for CAPEX in 2026? I think you kind of shared the guidance in terms of percentage.

Speaker #4: Exactly. Yes. Yes. I mean our guidance is as we said is somewhere between 23, 25% overall across different different investments for different services. So this will include the FTT FTTH 5G data centers we we we're we're working on this guideline and as I said we are assessing as things evolve and we'll definitely be communicating if there is any deviation from this strategy.

Tamer El Mahdi: Exactly. Yes. Our guidance is, as we said, is somewhere between 23% to 25% overall across different investments for different services. So this will include the FTTH, 5G, data centers. We're working on this guideline, and as I said, we are assessing as things evolve and we'll definitely be communicating if there is any deviation from this stretch.

Speaker #2: Okay. Okay. And I think this was our final question. We'll just wait for a minute in case our participants have follow-up questions. Dina is asking again about the the 6.7 billion gains from Vodafone in second Q26 if it includes FX gains.

[Analyst] (HC Brokerage): Okay. I think this was our final question. We will just wait for a minute in case our participants have follow-up questions. Dina is asking again about the USD 6.7 billion gains from Vodafone in Q2 2026, if it includes FX gains.

Tamer El Mahdi: I think Wael would be best to answer this question.

Speaker #4: I think Wael would be best to answer this question.

Speaker #2: Okay, okay, okay. It seems that we have—we have one question from Harry. He's asking, "Please, can you remind me how to calculate the ARPU for voice from the revenue breakdown and operational KPIs in the data file shared?"

[Analyst] (HC Brokerage): Okay. It seems that we have. No, we have one question from Harry. He is asking, please can you remind me how to calculate the ARPU for voice from the revenue breakdown and operational KPIs in the data file shared?

Speaker #4: I don't understand the question.

Tamer El Mahdi: I do not understand the question.

Speaker #2: And he's Yani, I think this we can take this management can take this offline. We we will make sure that they get back to Harry with the calculation of the average revenue per user.

[Analyst] (HC Brokerage): Management can take this offline. We will make sure that they get back to Harry with the calculation of the average revenue per user.

Speaker #4: Sure.

Tamer El Mahdi: Sure.

Speaker #2: Sure. Okay. Since we have no further questions, back to management for any concluding remarks.

[Analyst] (HC Brokerage): Sure. Okay. Since we have no further questions, back to management for any concluding remarks.

Speaker #4: Can you hear me now and now? I'm I'm sorry. I I I was hearing you, but you can hear me. So for for the Yani, let me answer the question related to the Vodafone.

Wael Hanafy: Can you hear me now, Mohamed, now?

[Analyst] (HC Brokerage): Yes, we do, Wael.

Wael Hanafy: I am sorry, I was hearing you, but you can hear me. Let me answer the question related to the Vodafone. The increase of Vodafone revenues, is some part of it related to FX or not? Definitely not. It was just the organic growth of Vodafone. This is one thing. For the ARPU calculation, it is a normal calculation for any ARPU. That we are going to capture all the revenue that has been recorded over the period and divide it by the customer base that we have. This is the normal calculation like any typical ARPU calculations. I think this is the question that I have missed. Is there any question that I missed?

Speaker #4: The increase of Vodafone revenues is was is some part of it related to FX or not? Definitely not. It was just the organic growth of Vodafone.

Speaker #4: This is one thing. For the RBU calculation, it's normal. It's normal calculation for any any RBU. That we are going to capture all the revenue that being recorded over the period and divided by the customer that the customer base that we have.

Speaker #4: So this is the the normal calculation like any typical RBU calculations. I think this is the question that I have missed. Is is there any question that I missed?

Speaker #2: No, I think you already answered the question on the interest expense. You were cut off in the middle of answering this question, so I think you did, right?

[Analyst] (HC Brokerage): No, I think you already answered the question on the interest expense. You were cut off in the middle of answering this question, so I think you did, right?

Wael Hanafy: Okay. Yes.

Speaker #2: Yes. Okay. So I I hand the floor to management for any concluding remarks since we all questions have been answered.

[Analyst] (HC Brokerage): Yes. Okay. I hand the floor to management for any concluding remarks since all questions have been answered.

Wael Hanafy: Tamer?

Speaker #4: Tamer? Yes. The the the the concluding remark which I just want to to to make is that we are building a stronger Telecom Egypt.

Tamer El Mahdi: Yes. The concluding remark, which I just want to make, is that we are building a stronger Telecom Egypt. We are working to grow the revenue, convert this revenue into faster EBITDA expansion, translating operation performance into sustainable, stronger profitability, and ultimately converting earnings into higher free cash flow. We have a plan. We have put a plan in the beginning of the year. We are executing this plan. The results of the H1 is an indication. We are just starting. It is comforting to see these numbers. That means that we have the right plan, and we are going in the right direction in terms of the implementation.

Speaker #4: We are working to grow the revenue, and convert this revenue into faster EBITDA expansion. Translating operational performance into sustainably stronger profitability, and ultimately converting earnings into higher free cash flow.

Speaker #4: So, we have a plan. We put a plan in at the beginning of the year. We are executing this plan. The results of the first quarter—the first half—are an indication.

Speaker #4: We are just starting. It is comforting to to to to to see these numbers. That means that we have the right plan and we are in going in the right direction in terms of the implementation.

Speaker #4: We working very hard with with with the team and with the with the with the stakeholders and everybody is concerned. In order to for Telecom Egypt to provide as usual the value that it will provide to both its customers and to the Egyptian telecommunication industry in general.

Tamer El Mahdi: We are working very hard with the team and with the stakeholders, and everybody is concerned in order for Telecom Egypt to provide, as usual, the value that it will provide to both its customers and to the Egyptian telecommunication industry in general.

Speaker #2: Okay. Thank you. So on behalf of HC, we thank the management of Telecom Egypt for today's meeting and we thank you all for participating in the call.

[Analyst] (HC Brokerage): Okay. Thank you. So, on behalf of HC, we thank the management of Telecom Egypt for today's meeting, and we thank you all for participating in the call. This ends our meeting, and you may now disconnect.

Speaker #2: This ends our meeting, and you may now disconnect. Thank you.

Tamer El Mahdi: Thank you.

[Analyst] (HC Brokerage): Thank you.

Ehab Shoeib: Thank you.

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Q2 2026 Telecom Egypt Co SAE Earnings Call

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