Ahmed El Beheiry, Group Chief Executive at Telecom Egypt said the company's long-term investment strategy is working, based on Q2 2018 results released today.

The company achieved a 16% increase in consolidated revenue, which exceeded EGP 10 billion for the first time, led by 45% growth (year-on-year) of data services.

El Beheiry said, "We are extremely proud of this quarter's operational performance. Telecom Egypt has been able to maintain its net profit YoY with a slight increase in Q2 2018 thanks to the management team's effort to strictly follow the long-term strategy put before the BoD at the beginning of the year and to overcome through operational efficiency the challenges of higher costs of marketing new products, the impact of Capex spending on depreciation and the higher borrowing costs. I am extremely pleased with the operating profit growth we achieved this quarter of 26% YoY, which has helped us to offset all the base effect on the bottom line of being in a new investment phase. It is important to highlight that our strategy relies on targeted investments in order to fulfil our goals for the company and the country."

He added that the strategy is focused on "successfully integrating and monetising the newly established mobile business, overhauling Egypt's internet infrastructure" and expanding the country's international network.

The objective remains to establish Egypt as a digital hub.

"Our ambitious investment strategy, while long-term in nature, has already shown results in the first half of 2018 with operational profit growing by 11% YoY in such a critical phase of the company's history. We are extremely proud of such performance noting that the impact on net profit in the first half of 2018 is an expected by-product of such investment strategy and the high interest macro environment."

Telecom Egypt said while it achieved EBITDA of EGP 3.3 billion in Q2 - which amounts to growth of 19%, its year-on-year net profit declined 18% to EGP 2.1 billion due to a decline in investment income from its stake in Vodafone Egypt, among other factors.

The company also said it experienced an 11% growth in fixed voice customers.

Telecom Egypt presented the results a day after it announced an agreement to provide Etisalat Misr with virtual fixed voice services.

Hazem Metwally, Chief Executive Officer of Etisalat Misr said the agreement will help Etisalat Misr "become a total telecom operator offering both voice and data services to its mobile and fixed customers in the country."

"This will allow us to serve all our customers' needs through one operator."