Maroc Telecom reports drops in revenues, EBITDA in Q3 2020
October 20th 2020
Maroc Telecom (IAM) has published its financial results for the three months ended 30 September 2020, reporting a 3.1% decrease in revenues from MAD9.209 billion (USD996 million) to MAD9.174 billion, attributed to a 7.0% drop in sales generated by the group’s domestic unit, which was partly offset by 0.7% increase in revenues from its international operations. The telco’s annual adjusted EBITDA decreased by 4.6% year-on-year to MAD4.758 billion, mainly due to a 6.8% decrease in pre-tax earnings from its domestic unit, which was partly offset by a 0.7% increase in its international operations’ EBITDA contribution. IAM’s adjusted earnings from operations reached MAD2.879 billion in 3Q20, an 8.1% decrease y-o-y, while the group’s share of adjusted net income amounted to MAD1.520 billion, down by 6.3% when compared to 3Q19. CAPEX including frequencies and licence costs amounted to MAD846 million at the end of September 2020, down 38.8% y-o-y.
In operational terms, the group reported annualised growth of 4.3% for its consolidated customer base, with the total passing 70.5 million connections at Q3 2020. In Morocco, wireless subscribers decreased by 2.8% y-o-y to 19.711 million, down from 20.281 million in 3Q19; the telco’s 3G/4G user base passed 11.335 million (down by 8.1% y-o-y), while broadband customers increased by 10.4% y-o-y to 1.709 million. In Niger, wireless accesses increased by 1.5% to 2.888 million, while the Central African Republic saw a sizeable 15.6% y-o-y rise in mobile subscribers to 185,000 at 30 September. Furthermore, mobile subscriber growth was also reported in Cote d’Ivoire (9.703 million, up 7.5%), Mauritania (2.572 million, 5.4%), Burkina Faso (9.087 million, 9.6%), Mali (8.572 million, 15.9%) and Chad (4.306 million, 25.5%), while Benin, Gabon and Togo reported annual declines of 0.2% (4.541 million), 2.4% (1.562 million) and 13.5% (3.190 million).
Abdeslam Ahizoune, Chairman of IAM’s Management Board, commented: ‘Amid the global health crisis and tougher competition, the international diversification strategy initiated by Maroc Telecom several years ago is once again proving its success. The international assets enable the Group to improve its resilience in this difficult economic environment. Maroc Telecom has also shown a strong adaptability in handling the effects of the crisis through the adoption of cost optimisation plans and optimised investment management from the beginning of the pandemic.’
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