More Africa NewsSenegal: Sonatel maintains growth in 2019 despite a tense business environment in its different markets

March 3, 2020by myles0

The National Telecommunications Company (Sonatel) of Senegal, a subsidiary of the French telecoms group Orange, recorded revenue of 1,086.6 billion FCFA in 2019, up by 64.6 billion FCFA compared to to 2018.

Despite a tense business environment in these different markets – political and economic crisis in Bissau, precarious security context in northern Mali, political protest movements in Guinea, economic gloom in Sierra Leone and renewed competition in Senegal – the telecom company was able to preserve growth.

Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to FCFA 482.1 billion, up 4.2% although the company’s net income decreased by 2.7% compared to 2018. Sonatel’s 2019 return is driven by the mobile voice even though its contribution to financial results fell by 1.1% compared to 2018. The mobile data (+ 24.7%), fixed broadband (+ 14.2%) and Mobile Money (+ 33%), on the other hand, saw their activities grow, making it possible to compensate in a certain way for this drop.

Thanks to 4G, the Sonatel group has retained its leading position in these different operating markets with a respective market share of 53.9% in Senegal, 58.8% in Mali, 62.6% in Guinea, 55 , 2% in Guinea Bissau and 48.1% in Sierra Leone where Orange became the leader in October 2019. For 2020, the group intends to maintain its leadership and raise its revenues higher. The company that plans to test 5G during the year is determined to successfully transform it into a digital service provider.

Source: Agence Ecofin

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