Against a difficult global macroeconomic environment, Maroc Telecom Group resumed revenue growth, driven by data, particularly in Moov Africa subsidiaries. Thanks to optimization cost efforts, the Group has maintained a high level of profitability, and pursued investments to support the development of usages and the quality of services. This performance comforts that the Group is on track to achieve its annual targets and confirms the success and resilience of its business model.
The Group's commitment to sustainable development and the well-being of citizens remains a priority, and is reflected in a variety of initiatives in the countries where it operates. In line with this commitment, Maroc Telecom has mobilized its teams to support the populations impacted by the earthquake in the Kingdom of Morocco, and has also made a donation to the dedicated Special Fund.
Group adjusted consolidated results*:
|
(IFRS in MAD millions) |
Q3 2022 |
Q3 2023 |
Change |
Change at constant exchange rates(1) |
|
9M 2022 |
9M 2023 |
Change |
Change at constant exchange rates(1) |
|
Revenues |
9,240 |
9,279 |
0.4% |
-0.8% |
|
26,808 |
27,679 |
3.2% |
1.2% |
|
Adjusted EBITDA |
4,901 |
4,948 |
1.0% |
0.0% |
|
14,072 |
14,527 |
3.2% |
1.5% |
|
Margin (%) |
53.0% |
53.3% |
0.3 pt |
0.4 pt |
|
52.5% |
52.5% |
-0.0 pt |
0.2 pt |
|
Adjusted EBITA |
3,131 |
3,178 |
1.5% |
0.8% |
|
8,872 |
9,230 |
4.0% |
2.5% |
|
Margin (%) |
33.9% |
34.3% |
0.4 pt |
0.6 pt |
|
33.1% |
33.3% |
0.3 pt |
0.4 pt |
|
Adjusted net income Group share |
1,651 |
1,694 |
2.6% |
1.9% |
|
4,520 |
4,629 |
2.4% |
1.5% |
|
Margin (%) |
17.9% |
18.3% |
0.4 pt |
0.5 pt |
|
16.9% |
16.7% |
-0.1 pt |
0.1 pt |
|
CAPEX(2) |
1,777 |
2,777 |
56.3% |
53.0% |
|
5,497 |
5,722 |
4.1% |
1.6% |
|
Of which frequencies and licenses |
0 |
0 |
|
|
|
0 |
0 |
|
|
|
CAPEX/Revenues (excluding frequencies and licenses) |
19.2% |
29.9% |
10.7 pt |
10.4 pt |
|
20.5% |
20.7% |
0.2 pt |
0.1 pt |
|
Adjusted CFFO |
2,833 |
2,139 |
-24.5% |
-24.4% |
|
8,159 |
7,176 |
-12.1% |
-13.4% |
|
Net debt |
17,166 |
17,410 |
1.4% |
-0.6% |
|
17,166 |
17,410 |
1.4% |
-0.6% |
|
Net debt/EBITDA(3) |
0.8x |
0.8x |
|
|
|
0.9x |
0.8x |
|
|
* The adjustments to the financial indicators are detailed in Appendix 1.
-
Customer base
At September 30, 2023, the Group's customer base was 75.1 million, a slight 0.7% decrease year-on-year.
-
Revenues
For the nine months to September 30, 2023, the Maroc Telecom Group posted consolidated revenues(4) of MAD 27,679 million, up 3.2% year-on-year (+1.2% at constant exchange rates(1)), driven mainly by a 7.5% increase in international business (+3.1% at constant exchange rates(1)).
-
Earnings from operations before depreciation and amortization
At September 30, 2023, Maroc Telecom Group’s consolidated adjusted earnings from operations before depreciation and amortization (EBITDA) amounted to MAD 14,527 million, up 3.2% (+1.5% at constant exchange rates(1)), thanks to the increase in consolidated revenues and an efficient controlling operating costs.
The adjusted EBITDA margin remained high at 52.5% (+0.2 pt at constant exchange rates(1) year-on-year).
-
Earnings from operations
Consolidated adjusted earnings from operations (EBITA)(5) for the first nine months of 2023 reached MAD 9,230 million, up 4.0% (+2.5% at constant exchange rates(1)). Adjusted EBITA margin stood at 33.3% (+0.4 pt at constant exchange rates(1) year-on-year).
-
Net income Group share
Adjusted net income Group share for the nine months to September 30, 2023 amounted to MAD 4,629 million, up 2.4% (+1.5% at constant exchange rates(1)).
-
Investments
CAPEX(2) excluding frequencies and licenses amounted to MAD 5,722 million, representing 20.7% of Group revenues, in line with the full-year outlook.
-
Cash flow
Over the first nine months of 2023, adjusted cash flows from operations (CFFO)(6) amounted to MAD 7,176 million, down 12.1% compared to the same period in 2022 (-13.4% at constant exchange rates(1)), in line with the rise in the investments.
-
Highlights
In response to the Royal appeal, Maroc Telecom supported the Special Fund set up to palliate the disastrous consequences of the recent earthquake in the Kingdom of Morocco. The Group contributed MAD 700 million to the fund in addition to individual employee contributions in order to support reconstruction and restoration work in the affected regions.
Group business review:
The adjustments to the “Morocco” and “International” financial indicators are explained in Appendix 1.
Morocco
|
(IFRS in MAD millions) |
Q3 2022 |
Q3 2023 |
Change |
|
9M 2022 |
9M 2023 |
Change |
|
Revenues |
5,247 |
5,069 |
-3.4% |
|
14,808 |
14,749 |
-0.4% |
|
Mobile |
3,245 |
3,132 |
-3.5% |
|
8,930 |
8,870 |
-0.7% |
|
Services |
3,021 |
2,990 |
-1.0% |
|
8,518 |
8,359 |
-1.9% |
|
Equipments and other revenues |
224 |
142 |
-36.6% |
|
411 |
511 |
24.1% |
|
Fixed |
2,461 |
2,382 |
-3.2% |
|
7,239 |
7,207 |
-0.4% |
|
Of which Fixed Data* |
1,027 |
1,031 |
0.3% |
|
3,000 |
3,167 |
5.5% |
|
Elimination and other income |
-459 |
-446 |
|
|
-1,360 |
-1,329 |
|
|
Adjusted EBITDA |
3,031 |
3,018 |
-0.4% |
|
8,395 |
8,435 |
0.5% |
|
Margin (%) |
57.8% |
59.5% |
1.8 pt |
|
56.7% |
57.2% |
0.5 pt |
|
Adjusted EBITA |
2,138 |
2,165 |
1,3% |
|
5,763 |
5,849 |
1.5% |
|
Margin (%) |
40.7% |
42.7% |
2.0 pt |
|
38.9% |
39.7% |
0.7 pt |
|
CAPEX(2) |
623 |
958 |
53.7% |
|
2,381 |
2,385 |
0.2% |
|
Of which frequencies and licenses |
0 |
0 |
|
|
0 |
0 |
|
|
CAPEX/Revenues (excluding frequencies and licenses) |
11.9% |
18.9% |
7.0 pt |
|
16.1% |
16.2% |
0.1 pt |
|
Adjusted CFFO |
2,266 |
1,717 |
-24.2% |
|
5,456 |
4,527 |
-17.0% |
|
Net debt |
10,667 |
8,609 |
-19.3% |
|
10,667 |
8,609 |
-19.3% |
|
Net debt/EBITDA(3) |
0.8x |
0.7x |
|
|
0.9x |
0.7x |
|
* Fixed Data includes Internet, ADSL TV and Data services to companies.
Over the first nine months of 2023, business operations in Morocco generated revenues of MAD 14,749 million, almost stable year-on-year, driven mainly by Fixed-line Data (+5.5%).
Over the same period, adjusted earnings from operations before depreciation and amortization (EBITDA) amounted to MAD 8,435 million, a year-on-year increase of 0.5%. Adjusted EBITDA margin remains at the high level of 57.2%, an improvement of 0.5 pt.
Adjusted earnings from operations (EBITA)(5) amounted to MAD 5,849 million, up 1,5% year-on-year. Adjusted EBITA margin improved by 0.7 pt to 39.7%.
During the first nine months of 2023, adjusted cash flows from operations (CFFO)(6) totaled MAD 4,527 million, down 17,0%.
Mobile
|
|
Unit |
9/30/2022 |
9/30/2023 |
Change |
|
|
|
|
|
|
|
Customer base(8) |
(000) |
19,925 |
19,978 |
0.3% |
|
Prepaid |
(000) |
17,521 |
17,492 |
-0.2% |
|
Postpaid |
(000) |
2,404 |
2,486 |
3.4% |
|
Of which Internet 3G/4G+(9) |
(000) |
11,041 |
11,807 |
6.9% |
|
ARPU(10) |
(MAD/month) |
46.9 |
46.8 |
-0.3% |
At September 30, 2023, the Mobile customer base(8) totaled nearly 20.0 million customers, continuing to benefit from the strong momentum of the postpaid segment, which expanded by 3.4%.
Mobile revenues slightly decreased (-0.7%) versus the same period in 2022 to MAD 8,870 million.
ARPU(10) for the first nine months of 2023 amounted to MAD 46.8, almost stable compared with the same period in 2022.
Fixed-line and Internet
|
|
Unit |
9/30/2022 |
9/30/2023 |
Change |
|
|
|
|
|
|
|
Fixed-line |
(000) |
1,937 |
1,819 |
-6.1% |
|
Broadband access(11) |
(000) |
1,710 |
1,598 |
-6.5% |
The Fixed-line customer base stood at 1.8 million lines at end-September 2023. Growth in the FTTH customer base (+44%) largely offset the decline in the ADSL customer base.
Fixed-line and Internet activities generated revenues of MAD 7.2 billion, down slightly by 0.4% compared to 2022. Growth in Fixed-line Data (+5.5%) partially offset the decline in Voice.
International
Financial indicators
|
(IFRS in MAD millions) |
Q3 2022 |
Q3 2023 |
Change |
Change at constant exchange rates(1) |
|
9M 2022 |
9M 2023 |
Change |
Change at constant exchange rates(1) |
|
Revenues |
4,248 |
4,485 |
5.6% |
2.9% |
|
12,801 |
13,765 |
7.5% |
3.1% |
|
Of which Mobile services |
3,930 |
4,129 |
5.1% |
2.3% |
|
11,844 |
12,703 |
7.2% |
2.9% |
|
Adjusted EBITDA |
1,870 |
1,930 |
3.2% |
0.8% |
|
5,678 |
6,093 |
7.3% |
3.0% |
|
Margin (%) |
44.0% |
43.0% |
-1.0 pt |
-0.9 pt |
|
44.4% |
44.3% |
-0.1 pt |
-0.1 pt |
|
Adjusted EBITA |
994 |
1,014 |
2.0% |
-0.1% |
|
3,108 |
3,381 |
8.8% |
4.4% |
|
Margin (%) |
23.4% |
22.6% |
-0.8 pt |
-0.7 pt |
|
24.3% |
24.6% |
0.3 pt |
0.3 pt |
|
CAPEX(2) |
1,154 |
1,819 |
57.7% |
52.6% |
|
3,116 |
3,336 |
7.1% |
2.8% |
|
Of which frequencies and licenses |
0 |
0 |
|
|
|
0 |
0 |
|
|
|
CAPEX/Revenues (excluding frequencies and licenses) |
27.2% |
40.6% |
13.4 pt |
13.1 pt |
|
24.3% |
24.2% |
-0.1 pt |
-0.1 pt |
|
Adjusted CFFO |
567 |
422 |
-25.6% |
-25.2% |
|
2,704 |
2,649 |
-2.0% |
-6.0% |
|
Net debt |
6,892 |
8,865 |
28.6% |
23.6% |
|
6,892 |
8,865 |
28.6% |
23.6% |
|
Net debt/EBITDA(3) |
0.9x |
1.1x |
|
|
|
0.9x |
1.0x |
|
|
The Group’s international revenues for the first nine months of 2023 were up 7.5% (+3.1% at constant exchange rates(1)) at MAD 13,765 million, thanks to a good momentum in Mobile Data up 27,4% (+22.3% at constant exchange rates(1)) and the performance of Mobile Money up 11,6% (+7.3% at constant exchange rates(1)). Excluding the reduction in call termination rates, subsidiaries’ revenues were up 3.5% at constant exchange rates(1).
Adjusted earnings from operations before depreciation and amortization (EBITDA) rose 7.3% (+3.0% at constant exchange rates(1)) to MAD 6,093 million, representing an adjusted EBITDA margin of 44.3%.
Adjusted earnings from operations (EBITA)(5) amounted to MAD 3,381 million, up 8.8% (+4.4% at constant exchange rates(1)), mainly due to the increase in adjusted EBITDA. This performance led to a slight 0.3 pt increase in adjusted EBITA margin to 24.6%.
Adjusted cash flows from operations (CFFO)(6) fell 2.0% (-6.0% at constant exchange rates(1)) to MAD 2,649 million, mainly due to the increase in investment.
Operating indicators
|
|
Unit |
9/30/2022 |
9/30/2023 |
Change |
|
Mobile |
|
|
|
|
|
Customer base(8) |
(000) |
51,548 |
51,145 |
|
|
Mauritania |
|
2,642 |
2,642 |
0.0% |
|
Burkina Faso |
|
11,021 |
11,339 |
2.9% |
|
Gabon |
|
1,536 |
1,486 |
-3.2% |
|
Mali |
|
9,163 |
8,358 |
-8.8% |
|
Côte d’Ivoire |
|
10,534 |
9,704 |
-7.9% |
|
Benin |
|
5,371 |
5,489 |
2.2% |
|
Togo |
|
2,771 |
2,882 |
4.0% |
|
Niger |
|
2,849 |
3,008 |
5.6% |
|
Central African Republic |
|
216 |
230 |
6.3% |
|
Chad |
|
5,444 |
6,007 |
10.3% |
|
Fixed |
|
|
|
|
|
Customer base |
(000) |
362 |
383 |
|
|
Mauritania |
|
56 |
38 |
-32.8% |
|
Burkina Faso |
|
76 |
75 |
-1.0% |
|
Gabon |
|
39 |
52 |
33.6% |
|
Mali |
|
191 |
218 |
14.2% |
|
Fixed Broadband |
|
|
|
|
|
Base(11) |
(000) |
153 |
189 |
|
|
Mauritania |
|
19 |
22 |
14.8% |
|
Burkina Faso |
|
16 |
21 |
32.9% |
|
Gabon |
|
35 |
49 |
38.3% |
|
Mali |
|
83 |
97 |
16.6% |
Source: https://finance.yahoo.com/news/maroc-telecom-pr-q3-2023-071800438.html