Telecompaper
Maroc Telecom raised its outlook for full-year results after improving trends in the third quarter. The African operator now expects a small increase in annual revenues, compared to a forecast of flat sales previously, resulting in stable EBITDA, rather than a slight drop.
The forecast is based on continuing operations and constant exchange rates. The company said the better results were due to network investment and cost control and come despite tough macroeconomic pressures and intense competition.
During the first nine months to 30 September, Maroc Telecom’s net profit rose by 3 percent annually to MAD 4.45 billion, driven by a strong increase in the contribution from foreign subsidiaries and stable results in Morocco. Revenues increased by 4.6 percent over the same period to MAD 26.67 billion.
EBITDA increased by 1.4 percent to MAD 12.93 billion, as the increase of 6.5 percent in EBITDA at the international activities more than offset the 1.0 percent drop in EBITDA in Morocco. The EBITDA margin amounted to 48.5 percent, a decrease of 1.5 points, due to the dilutive effect of integrating the new African subsidiaries acquired from parent company Etisalat.
Cash flow from operations amounted to MAD 8.05 billion, an increase of 14.5 percent compared to the same period in 2015, resulting from both improved cash flow in Morocco, which rose by 16 percent, and that of the international activities, which increased by 12 percent.
The group’s customer base exceeded 52 million on 30 September, up 3.2 percent over one year, supported primarily by increases in the subsidiaries customer base, which grew by 4.6 percent.
Meanwhile revenue from activities in Morocco reached MAD 16.22 billion, with a 3.5 percent increase in fixed-line and internet activities offsetting the 1.5 percent drop in mobile revenues. EBITDA amounted to MAD 8.63 billion, a decline of 1.0 percent compared to the same period in 2015, as a result of the increase in charges for interconnection and good control of inflationary pressure on operating costs. The EBITDA margin remained high at 53.2 percent, but was down by 1.6 points year-on-year.
Cash flow from operations in Morocco rose significantly by 16.1 percent to MAD 4.902 billion, essentially due to a favorable comparison effect following payment of MAD 910 million for the 4G licence in the second quarter of 2015. At 30 September, the mobile customer base reached 18.6 million clients, up by 0.3 percent in a year, driven by growth of 6.9 percent among postpaid customers and strong demand for mobile internet, whose base expanded by 17 percent year-on-year to reach 7.5 million customers at end-September.
