GlobeNewswire
H1 2019 CONSOLIDATED RESULTS
Results beyond objectives:
- Group’s total customer base, close to 63 million subscribers, up 3.9%;
- Consolidated revenues up 0.8% (at constant exchange rates), thanks to the growth in Mobile Data revenue in Morocco (+19.7%) and in the subsidiaries (+24.6%);
- EBITDA up sharply (+5.1% on a like-for-like basis*), thanks to cost optimization;
- Group share of adjusted Net Income up 1.8% (on a like-for-like basis*);
- Adjusted Consolidated Cash Flow From Operations up 30.6% on a like-for-like basis*.
2019 outlook maintained, at constant scope and exchange rates and excluding IFRS16:
- Stable revenues;
- Stable EBITDA;
- CAPEX approximately 15% of revenues, excluding frequencies and licenses.
To mark the publication of this press release, Abdeslam Ahizoune, Chairman of the Management Board, made the following comments:
“Maroc Telecom achieved better-than-target results in the first half of 2019, thanks in part to the success of Data in all its markets, despite the strong competitive intensity. Profitability is improving significantly thanks to cost optimization efforts, which offset the increasing sectoral tax pressure in some subsidiaries’ countries.
As an engaged operator in digital transformation in Africa, the Group continues its investment efforts to meet the challenges of the digital age through the development of last generation connectivity infrastructure. “
* Like-for-like basis refers to unchanged MAD/Ouguiya/ CFA Franc exchange rates and the impact of the neutralization of the application of IFRS 16
Group adjusted* consolidated results
| IFRS in MAD million | H1-2018 | H1-2019 | Change | Change on like-for-like basis(1) |
| Revenues | 17,939 | 17,844
|
-0.5%
|
+0.8%
|
| EBITDA | 8,860 | 9,409
|
+6.2%
|
+5.1% |
| Margin (%) | 49.4% | 52.7% | +3.3 pt | +2.1 pt |
| Adjusted EBITA | 5,540
|
5,862
|
+5.8%
|
+6.4%
|
| Margin (%) | 30.9% | 32.9% | +2.0 pt | +1.7 pt |
| Adjusted Net Income | 3,468
|
3,485
|
+0.5%
|
+1.5%
|
| Group share of adjusted Net Income | 2,991 | 3,022 | +1.0% | +1.8% |
| Margin (%) | 16.7% | 16.9% | +0.3 pt | +0.2 pt |
| CAPEX(2) | 3,599
|
3,227
|
-10.3%
|
-8.2% |
| Of which frequencies and licenses | 480 | 1,327 | ||
| CAPEX/revenue (excluding frequencies and licenses) | 17.4% | 10.7% | -6.7 pt | -6.7 pt |
| Adjusted CFFO | 4,230
|
5,728 | +35.4% | +30.6% |
| Net debt | 17,129 | 21,034 | +22.8% | +16.3% |
| Net debt / EBITDA(3) | 1.0x | 1.1x |
* Details of the financial indicator adjustments are provided in Appendix 1.
► Customer base
Maroc Telecom Group ended the half year with a total customer base of nearly 63 million subscribers, up 3.9% on the same period the previous year. This increase was originating both from the Mobile and Fixed-Line customer base in Morocco (up 3.2% and 3.6%, respectively) as well as from subsidiaries’ Mobile customer base (up 4.1%).
► Revenues
At end-June 2019, Maroc Telecom Group’s consolidated revenues(4) amounted to MAD 17,844 million, up 0.8% (at constant exchange rates), thanks to business growth in Morocco, which offset the adverse impact of the decline in Mobile call terminations rates and incoming international revenue in subsidiaries.
► Earnings from operations before depreciation and amortization
Thanks to an active cost optimization policy, which reduced operating expenses, and to the favorable fall in Mobile call termination rates in subsidiaries, the Group’s earnings from operations before depreciation and amortization (EBITDA) amounted to MAD 9,409 million, up 6.2% (+5.1% on a like-for-like basis(1)). The EBITDA margin improved by 2.1 points to the high level of 51.5% (on a like-for-like basis(1)).
► Earnings from operations
At the end of June 2019, Maroc Telecom Group’s adjusted consolidated earnings from operations (EBITA) (5) amounted to MAD 5,862 million, up 5.8% (+6.4% on a like-for-like basis(1)), supported by the rise in EBITDA. The EBITA margin rose 2.0 points (+1.7 pts on a like-for-like basis(1)) to 32.9%.
► Net Income and Group share of Net Income
In the first half of 2019, adjusted Net Income amounted to MAD 3,485 million and Group share of adjusted Net Income was MAD 3,022 million, up 1.5% and 1.8%, respectively, on a like-for-like basis(1), supported by strong business performance in Morocco.
► Investments
Excluding frequencies and licenses, the optimization of capital expenditures levels leads to a CAPEX/revenue ratio of 10.7%, in line with targets.
► Cash Flow
Adjusted cash flow from operations (CFFO)(6) was MAD 5,728 million, up 35.4% (+30.6% on a like-for-like basis(1)) under the combined effects of higher EBITDA and optimization of investments.
At the end of June 2019, Maroc Telecom Group’s consolidated net debt(7) was MAD 21 billion, up 22.8% year-on-year, reflecting the license payments in subsidiaries, the acquisition of Tigo Chad, the payment of dividends to all Maroc Telecom Group shareholders and the impact of IFRS16. Excluding the impact of IFRS 16, the consolidated net debt is up 16.3%.
► Highlights
As part of the implementation of the 2019 Budget Act, the Moroccan Government sold off 8% of the capital and voting rights in Itissalat Al-Maghrib in the form of blocks of shares on June 17, 2019 (6% of capital) and of a public offer sale closed on July 16, 2019 (2% of capital). After the completion of this transaction, the Kingdom of Morocco holds 22% of the capital and voting rights in Maroc Telecom.
Further to the agreement signed on March 14, 2019, Maroc Telecom finalized the acquisition from Millicom of its subsidiary Tigo Chad. The consolidation of this subsidiary will be effective in the second half of 2019.
