TE aims to in­crease con­tri­bu­tion of ma­rine ca­bles, data cen­tres to rev­enues by 25%

The Daily News Egypt - - Business - By Mo­hamed Alaa El-Din

Mo­hamed Sameh, cor­po­rate sec­tor man­ager at Tele­com Egypt (TE), said that the com­pany plans to boost the con­tri­bu­tion of data cen­tre ser­vices and other value-added ser­vices like host­ing, cloud com­put­ing, and other ser­vices to the busi­ness sec­tor’s to­tal rev­enues by up to 25% in the com­ing five years.

TE re­vealed sev­eral days ago that there is a po­ten­tial in­vest­ment op­por­tu­nity in the ma­rine ca­ble sec­tor, on the back of which the board of di­rec­tors ap­proved amend­ing the pro­posed div­i­dend for fis­cal year 2017 to se­cure fund­ing.

In a press state­ment, the com­pany said that in light of an aris­ing in­vest­ment op­por­tu­nity in the sub­ma­rine ca­ble in­dus­try that is ex­pected to max­imise the com­pany’s returns from the ca­ble busi­ness and en­sure the con­tin­u­a­tion of the cur­rent rev­enue stream, the board of di­rec­tors de­ter­mined to re­duce the ear­lier pro­posed div­i­dend for FY 2017 to EGP 0.25 from EGP 1 per share.

The board’s de­ci­sion to amend the div­i­dends pro­posal comes in light of the com­pany’s de­ci­sion to pre­serve the rev­enue stream of the ca­ble sys­tems seg­ment, avail short-term fi­nanc­ing to the po­ten­tial in­vest­ment op­por­tu­nity with­out in­flat­ing the com­pany’s debt po­si­tion, and achieve a short-term re­turn on the po­ten­tial in­vest­ment op­por­tu­nity.

The com­pany in­tends to main­tain its long-stand­ing div­i­dend pol­icy to its share­hold­ers in FY 2018 and be­yond. Such div­i­dend pol­icy aims to pro­vide in­vestors with a con­tin­u­ous stream of an­nual div­i­dends, while bal­anc­ing div­i­dend dis­tri­bu­tion and the rein­vest­ment of its cash flows in its cap­i­tal ex­pen­di­ture, which is viewed as the key driver for in­duc­ing fu­ture growth.

The com­pany said there is an aris­ing in­vest­ment op­por­tu­nity in the sub­ma­rine ca­ble in­dus­try

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