Maroc Telecom revises FY2016 outlook on strong 9M16 results

28 October 2016

Mergers, Acquisitions and Financial Results

Maroc Telecom (IAM), the country’s leading telco in terms of subscribers, has published its financial results for the nine months ended 30 September 2016, reporting a 3.3% increase in revenues, from MAD25.503 billion (USD2.5 billion) to MAD26.674 billion.

The improvement was driven by the group’s international operations, which grew by 12.4% year-on-year (8.8% on a comparable basis), and a marginal growth in the group’s domestic market (1.9%). Meanwhile, Maroc Telecom’s EBITDA increased by 1.4% in the period under review, to MAD12.934 billion; on a like-for-like basis EBITDA increased 1.1%, with the progress attributed to an 1.0% decline in the Moroccan unit’s EBITDA, although this was partly compensated by a 6.5% growth in EBITDA from the company’s international operations. Maroc Telecom’s consolidated earnings from operations reached MAD8.361 billion at 30 September 2016, a 3.2% increase y-o-y, while net income amounted to MAD4.454 billion, up by 3.0% when compared to 9M15.

The operator has revised its outlook for FY2016, forecasting a slight increase in revenues for the twelve months to end-December 2016 (stable previously), while also expecting to generate stable EBITDA in the period (slight decline previously). CAPEX is expected to amount to approximately 20% of revenues, excluding frequencies and licenses.

In operational terms, Maroc Telecom reported annualised growth of 3.2% for its consolidated customer base, with the total number of customers passing the 52 million mark at end-September 2016. In Morocco, wireless subscribers marginally increased by 0.3% y-o-y to reach 18.628 million, up from 18.567 million in September 2015; the telco’s 3G/4G user base grew by 16.6% to 7.471 million, while broadband customers increased by 10.5% y-o-y to 1.204 million. In Niger, wireless numbers increased by 80.1% to 1.208 million users, while Cote d’Ivoire saw 33.6% increase in mobile subscribers y-o-y to 6.062 million by 30 September. Further, mobile subscriber increases were also seen in Benin (3.700 million, up 18.1%), Gabon (1.726 million, 13.2%), Togo (2.352 million, 11.7%) and Burkina Faso (6.968 million, 6.1%), though Mali reported a 25.0% annual decline in its wireless subscription base to 6.062 million.

Abdeslam Ahizoune, chairman of Maroc Telecom’s management board, stated: ‘Maroc Telecom confirms the return of growth in all its activities. This result is thanks to major investment efforts in the high and very high speed mobile and fixed-line networks in Morocco as well as in its African subsidiaries. The Maroc Telecom group is reasserting its leadership position with the best quality networks, both technical and commercial, supporting the strong growth in its customers’ data usage, all while continuing to optimise costs.’

Source: Telegeography 24 Ocotber 2016