MAROC TÉLÉCOM PROFIT CLIMBS 16% ON MOBILE PERFORMANCE

Mergers, Acquisitions and Financial Results

Moroccan incumbent fixed line operator Maroc Télécom has reported a 16% rise in 2006 net income to EUR607 million (USD800 million), compared to EUR523 million in 2005, with the improvement primarily attributable to robust operating profitability in its mobile business.

Full-year group operating profit stood at EUR904 million, up 15.5% year-on-year, whilst mobile operating profit climbed 28% to EUR621 million, more than offsetting a 4.4% decline in operating profit for fixed telephony and internet activities to EUR283 million.

Télécom’s 2006 revenues increased from EUR1.92 billion to EUR2.11 billion, driven by a 30% increase in mobile subscribers to 10.71 million. For 2007, the group, 51%-owned by French media and telecoms group Vivendi, predicts growth in excess of 6% in revenues, and over 10% in operating profit. In December 2006 Maroc Télécom launched an MVNO service in France, called Mobisud, which registered an operating loss of EUR3 million, on sales of EUR36,000.

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