Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Business of Tech

Vodafone still holding out for Egypt sale

Article Image
Vodafone is still holding out for a sale of its 55% stake in Vodafone Egypt, despite decent half-year results in the North African nation.

Vodafone said it is still in talks with Saudi Telecom Company (STC) to finalize the deal which has been in the works since January 2020.

"Vodafone remains in discussion with STC to finalize the transaction in the near future and now looks to STC and Telecom Egypt to find a suitable agreement to enable the transaction to close," Vodafone said in a statement as part of its results for the six months ended September 30, 2020.

Plans were announced back in January but since then STC has postponed the acquisition twice — once in April and again in July when the operator said it would need a further two months to complete the purchase because of the logistical challenges caused by the COVID-19 pandemic.

In September, Vodafone said it still wanted to finalize the deal after rumors that STC wanted to reduce its US$2.4 billion non-binding offer.

Revenue ticks up

As far as the first six months of the financial year were concerned, the Egyptian business grew its service revenue by 9.1%, (5.4% organic growth), to €730 million ($866 million) as the customer base grew and customers increased their data usage.

Growth was partially offset by lower roaming and visitor revenue, and the impact of a government-mandated waiver of transaction fees on its e-money platform.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA), however, declined by 10.4%, to €316 million ($375 million), and the organic adjusted EBITDA margin decreased by 7.1 percentage points.

"This reflected an intra-year re-phasing of marketing spend into H1, the lapping of a prior year settlement, and the zero-rating of e-money transaction fees during the COVID-19 pandemic, which will end during H2," the group said.

Vodafone Egypt had about 40.4 million mobile customers at the end of September 2020.

Earlier this month, Vodafone acquired a ten-year license in Egypt for 2.6GHz spectrum, for $540 million, which it said will help it meet growing demand for voice and data services in the country.

*Top image source: (jbeau on Flickr CC 2.0)

— Paula Gilbert, Editor, Connecting Africa

Innovation hub

Story

Hot startup of the month: Rwanda's Smart Ikigega

This month's hot startup, Smart Ikigega, wants to revolutionize the rural agricultural trade ecosystem in Rwanda by helping farmers access finance and harvest insurance.

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

More Innovation hub

Sponsored video

More videos

Flash poll

All polls

Latest video

More videos

Africa Tech Perspectives

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

Story

Challenges and opportunities for women's tech careers

A new survey reveals that COVID-19, the cost-of-living crisis, skills shortages and a lack of mentorship have negatively affected women's career development over the past two years.

Story

Survey: Opportunities for Women in Tech

Take our new survey for women across Asia, Europe and Africa looking at the biggest challenges and opportunities for women-led enterprises and trends in tech careers for women.

More AfricaCom perspectives

Guest Perspectives

Story

Omdia View: July 2022

By Omdia Analysts

Kenya and Zambia move towards 5G with new spectrum allocations while Tunisie Telecom plans to shut down its 3G network - that and more in this month's Omdia View.

Story

Omdia View: June 2022

By Omdia Analysts

5G was the major news trend across Africa in June, as Orange became the first operator to launch 5G in Réunion and operators in Senegal accelerated their 5G plans despite spectrum delays.

More Guest Perspectives

Industry announcements

More Industry announcements

Partner perspectives

All Partner Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up