Egypt’s aggregate earnings increased 10% y/y (+12% q/q) to EGP17.62bn in Q1 2019, according to the results of 116 companies that have reported their results so far. Meanwhile, aggregate revenue growth hit 10% y/y (-9% q/q) to EGP100.10bn. Absolute earnings growth in Q1 2019 is largely attributed to a surge in Telecom Egypt’s (ETEL) earnings which more than doubled y/y in Q1 2019 (turning losses into profit sequentially), supported on one hand by investment income from Vodafone Egypt (VFE) and strong revenue growth across most of its business segments on the other hand. Excluding ETEL’s results, aggregate earnings would have still grown but by only 5% y/y (+2% q/q) to EGP16.01bn. From a different angle, excluding outliers (i.e. companies with ±100% y/y earnings growth), earnings would have only risen by 6% (+2% q/q).
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