Telecom Egypt to receive EGP 0.5 bln in dividends from Vodafone Egypt

Telecom Egypt said the annual General Assembly of Vodafone Egypt held on 28 June approved the distribution of dividends with a total value of EGP 1.1 billion from the company’s retained earnings. The dividend distribution equates to EGP 4.63 per Vodafone share and translates into a total cash inflow of EGP 499 million for Telecom Egypt, representing its 45 percent stake. Telecom Egypt intends to use the cash to repay a portion of its existing short-term debt.

Vodafone Egypt continues to demonstrate growth and an excellent performance, with annual revenues up 20.3 percent to EGP 21.2 billion. Net profit stood at EGP 4.4 billion, after growing 14 percent on a normalized basis. The resumption of dividend distribution of Vodafone Egypt is considered a step towards reaching a sustainable long-term agreement with Vodafone Group, Telecom Egypt, adding "It also reaffirms our commitment to this investment."