Earnings Watch: EFG Hermes, Telecom Egypt
EARNINGS WATCH- EFG Hermes recorded a net profit after tax and minority interest from continued operations of EGP 236 mn in 1Q2017. Total operating revenue increased by 106% y-o-y to EGP 825 mn during the quarter. “Our revenue growth reflects both the robust health of our traditional agency business and a growing contribution from our non-bank financial institution. During the second quarter of 2017, we will continue to lay the foundation for profitable revenue growth as we begin integrating our newly acquired Pakistan operation into our platform and press ahead with the rollout of our frontier markets, more NBFI products and merchant banking strategies,” CEO Karim Awad says.
EK Holding turned in an exceptional quarter despite translating what are largely EGP-denominated revenues into USD for the purposes of its financial statements. Attributable net income grew 3% to USD 22.5 mn on flattish revenues of USD 103.4 mn, meaning its attributable net income grew 127% year-on-year in EGP terms. EKH’s investments benefitted from prevailing macro trends including the drive for import substitutes, exports and better availability of energy. The company’s full earnings release is here (pdf).
Telecom Egypt reported in net profit attributable to shareholders growing to EGP 1.34 bn in 1Q2017 from EGP 1.28 bn a year earlier. Operating revenue increased to EGP 4.19 bn during the quarter from EGP 3.06 bn in 1Q2016.