Money – In Brief

Mergers, Acquisitions and Financial Results

- Maroc Telecom has recorded net income of MAD3.13 billion (USD344 million) for the first six months of 2012, down 22% year-on-year following voluntary redundancy costs and declining sales in its home market. Revenue in Morocco slipped 5.3% to MAD11.9 billion in the wake of increased competition, although this was almost entirely offset by a 21% gain in sales from its subsidiaries in Burkina Faso, Gabon, Mali and Mauritania. The provision for the redundancy programme launched in June came in at MAD800 million, and has to date seen 800 employees leave the company. The Vivendi-owned telco says the number may rise further by the end of 2012.

- Senegal’s national PTO Sonatel has reported a 15% year-on-year increase in net profit to XOF87.02 billion (USD160.3 million) for the six months ended 30 June 2012, on revenue which rose to XOF323.61 billion from XOF312.25 billion in the corresponding period of 2011.Sonatel is owned by France Telecom-Orange (42.30%) and the government of Senegal (27.15%). The remaining 30.55% is in the hands of employees and private individuals. Following an amendment of the shareholders’ agreement between FT-Orange and the Senegalese government, Sonatel was fully consolidated in the French telco’s results from 1 July 2005.

- Mauritel, the Mauritanian subsidiary of Maroc Telecom, has posted a solid rise in revenue for the first six months of this year, The PTO booked an 11.1% increase in H1 sales to MAD667 million (USD73.8 million) fuelled by a 20% rise in turnover from mobile services, which reached MAD505 million. The telco also reported ‘stable rates’ and higher usage of its services as customer numbers increased by 7% year-on-year to 1.96 million at 30 June 2012, from 1.83 million a year earlier.

- Mobilis, to invest DZD142 billion (USD1.7 billion) over the next five years in order to upgrade its infrastructure and increase its share of the Algerian mobile subscriber market to 45%. At the end of March 2012 the cellco claimed a 26.8% share, some way behind market leader Djezzy with 49.4%. Mobilis will provide 87% of the finance required from its own funds, while the rest will be funded through bank credits. The spending will see a move to an all-IP network, as well as boosting the number of base stations from 5,200 to 9,000 within five years. The company’s backhaul network will meanwhile be expanded to support increased data services, and a new customer support centre will open in Sidi Abdallah.

- Econet Wireless is fighting to recover approximately USD85 million worth of interconnection fees from fellow cellcos NetOne and TelOne. Econet CEO Douglas Mboweni told the a parliamentary committee that the company may be forced to cut off its state-owned rivals if they fail to pay. The executive also revealed that most of the company’s base stations run on generators due to electricity supply problems. 72% of base stations would be running on generators at any given time to keep the network reasonably operational.