Morocco: Maroc Telecom reports increase in revenues, EBITDA in Q2 2020
July 22nd 2020
Maroc Telecom (IAM) has published its financial results for the three months ended 30 June 2020, reporting a 1.3% increase in revenues from MAD8.895 billion (USD923 million) to MAD9.014 billion, attributed to a 5.8% rise in sales generated by the group’s international operations, which was partly offset by 3.9% decrease in revenues from its domestic unit. The telco’s annual EBITDA increased by 1.0% year-on-year to MAD4.809 billion, fuelled by a 9.0% growth in pre-tax earnings from its international subsidiaries, which was partly offset by a 3.3% decrease in its domestic unit’s EBITDA contribution. IAM’s adjusted earnings from operations reached MAD2.913 billion in 2Q20, a 0.3% increase y-o-y, while the group’s share of adjusted net income amounted to MAD1.410 billion, down by 2.2% when compared to 2Q19. CAPEX including frequencies and licence costs amounted to MAD659 million at the end of June 2020, down 36.3% y-o-y.
The group also disclosed that due the uncertainties generated by the COVID-19 crisis, Maroc Telecom is revising its outlook for 2020 on a like-for-like basis and at constant exchange rates, forecasting a slight decrease in revenues and EBITDA, and a CAPEX (excluding frequencies and licences) of approximately 10% of revenues.
In operational terms, the group reported annualised growth of 9.1% for its consolidated customer base, with the total reaching almost 68.4 million connections at mid-2020. In Morocco, wireless subscribers marginally increased by 0.1% y-o-y to reach 19.572 million, up from 19.547 million in 2Q19; the telco’s 3G/4G user base passed 11.764 million (up by 5.8% y-o-y), while broadband customers increased by 10.5% y-o-y to 1.689 million. In Niger, wireless accesses increased by 6.0% to 2.979 million, while the Central African Republic saw a sizeable 20.4% y-o-y rise in mobile subscribers to 184,000 at 30 June. Furthermore, mobile subscriber growth was also reported in Cote d’Ivoire (9.231 million, up 3.7%), Mauritania (2.400 million, 0.5%), Burkina Faso (8.930 million, 11.3%) and Mali (7.909 million, 5.7%), while Benin, Gabon and Togo reported annual declines of 0.5% (4.339 million), 14.3% (1.413 million) and 13.8% (3.108 million). Tigo Chad, which was consolidated in July 2019, reported 4.227 million users at mid-2020.
Abdeslam Ahizoune, Chairman of IAM’s Management Board, commented: ‘The results in an unprecedented context of global health crisis, the Maroc Telecom Group is mobilised to comply with the authorities’ guidelines and meet the expectations of its customers. The Group’s network capacities and infrastructures, which were very busy during the lockdown period, fully responded to the increase in demand and the expansion of new usages, without any impact on the quality of service. The relevance of the Group’s strategy, focused on investment for the strengthening of networks, infrastructures and digitalisation, is thus reinforced.’
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