Morocco: IAM reports revenue, EBITDA growth in 2019
February 20th 2020
Maroc Telecom (IAM) has published its financial results for the twelve months ended 31 December 2019, reporting a 1.3% increase in revenues from MAD36.032 billion (USD2.8 billion) to MAD36.517 billion, attributed to a 1.3% increase in sales generated by the group’s domestic unit and marginal 0.3% growth in revenues from its international operations. The telco’s annual EBITDA increased by 6.0% year-on-year to MAD18.922 billion, fuelled by 7.3% growth in pre-tax earnings from domestic operations and a 3.6% increase in its subsidiaries’ EBITDA contribution. IAM’s adjusted earnings from operations reached MAD11.540 billion in 2019, a 4.4% increase y-o-y, while the group’s share of adjusted net income amounted to MAD6.029 billion, up by 0.4% when compared to 2018. CAPEX including frequencies and licence costs amounted to MAD6.788 billion at the end of 2019, up 2.2% y-o-y.
The group also disclosed that it had made a provision in its accounts for an amount of MAD3.3 billion as of 31 December 2019, relating to a decision published by the National Agency of Telecommunications Regulation (Agence Nationale de Reglementation de Telecom, ANRT) in January 2020. The ANRT ruled that Maroc Telecom abused its dominant position by preventing and delaying its competitors from accessing local loop unbundling (LLU) and the fixed broadband market since 2013. Maroc Telecom disclosed that it is currently considering the issue and it has the option to lodge an appeal within 30 days from the notification of the decision.
In operational terms, the group reported annualised growth of 11.1% for its consolidated customer base, with the total reaching 68 million connections at end-2019. In Morocco, wireless subscribers increased by 5.2% y-o-y to reach 20.054 million, up from 19.062 million in 2018; the telco’s 3G/4G user base passed 11.789 million (up by 8.9% y-o-y), while broadband customers increased by 6.1% y-o-y to 1.573 million. In Niger, wireless accesses increased by 17.6% to 2.922 million, while Burkina Faso saw a sizeable 11.9% y-o-y rise in mobile subscribers to 8.546 million at 31 December. Furthermore, mobile subscriber growth was also reported in Cote d’Ivoire (8.975 million, up 3.8%), Mauritania (2.470 million, 3.1%), Benin (4.377 million, 2.3%), Mali (7.447 million, 1.7%) and Central African Republic (168,000, 19.9%), while Togo reported an annual decline of 11.0% (3.030 million). Tigo Chad, which was consolidated in July 2019, reported 3.975 million users at end-2019.
Abdeslam Ahizoune, Chairman of IAM’s Management Board, commented: ‘Excluding the impact of the ANRT decision, Maroc Telecom Group improves its performance and increases profits beyond its annual objectives. It corroborates the relevance of its strategy based on performing networks and a range of services tailored to its market both domestic and in subsidiaries. Maroc Telecom will pursue in 2020 its investment efforts and the digitisation of its services in order to improve the customer experience and the operational efficiency of its organisation.’
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