Resilience of the Group's business amid an unprecedented health crisis:
- 9% growth in the Group's overall customer base, which reached 68.4 million customers;
- Stable consolidated revenues thanks to International activities and Mobile and Fixed line Data in Morocco;
- Maintain of good profitability through optimized cost management: Consolidated EBITDA margin of 52.4%, up 0.7 pt on a like-for-like basis;
- Rapid adaptation of network resources and capacity to respond to market developments facing the Covid-19 crisis.
Revision of 2020 outlook on a like-for-like basis and at constant exchange rates:
- Slight decrease in revenues;
- Slight decrease in EBITDA;
- CAPEX of approximately 10% of revenues, excluding frequencies and licenses.
Upon the publication of this press release, Mr. Abdeslam Ahizoune, Chairman of the Management Board, said:
«In an unprecedented context of global health crisis, the Maroc Telecom Group is mobilized to comply with the authorities' guidelines and meet the expectations of its customers.
The Group's network capacities and infrastructures, which were very busy during the lockdown period, fully responded to the increase in demand and the expansion of new usages, without any impact on the quality of service. The relevance of the Group's strategy, focused on investment for the strengthening of networks, infrastructures and digitalization, is thus reinforced.
Maroc Telecom, a socially responsible company, has also contributed to the collective effort through numerous initiatives in Morocco and in the countries of its subsidiaries, notably through contributions to COVID funds set up by the authorities.
This health context prompted the Group to adopt a broad cost optimization plan, which made it possible to maintain good performance over the half-year despite the first effects of the pandemic.»
Group consolidated adjusted results*
| (IFRS in MAD million) | Q2-2019 | Q2-2020 | Change | Change on a like-for-like basis (1) |
6M-2019 | 6M-2020 | Change | Change on a like-for-like basis (1) |
||||||
| Revenues | 8,895 | 9,014 | +1.3% | -2.1% | 17,844 | 18,323 | +2.7% | +0.0% | ||||||
| EBITDA | 4,762 | 4,809 | +1.0% | +0.2% | 9,409 | 9,603 | +2.1% | +1.4% | ||||||
| Margin (%) | 53.5% | 53.3% | -0.2 pt | +1.2 pt | 52.7% | 52.4% | -0.3 pt | +0.7 pt | ||||||
| Adjusted EBITA | 2,960 | 2,922 | -1.3% | -0.2% | 5,862 | 5,836 | -0.5% | +0.2% | ||||||
| Margin (%) | 33.3% | 32.4% | -0.9 pt | +0.6 pt | 32.9% | 31.8% | -1.0 pt | +0.1 pt | ||||||
| Group share of adjusted Net Income | 1,441 | 1,410 | -2.2% | +1.5% | 3,022 | 3,006 | -0.5% | +1.5% | ||||||
| Margin (%) | 16.2% | 15.6% | -0.6 pt | +0.5 pt | 16.9% | 16.4% | -0.5 pt | +0.3 pt | ||||||
| CAPEX(2) | 1,034 | 659 | -36.3% | -47.0% | 3,227 | 1,186 | -63.3% | -65.4% | ||||||
| Of which frequencies & licenses | 1,327 | |||||||||||||
| CAPEX/revenues (excl.frequencies & licenses) | 11.7% | 7.3% | -4.4 pt | -6.7 pt | 10.7% | 6.5% | -4.2 pt | -5.4 pt | ||||||
| Adjusted CFFO | 2,936 | 4,206 | +43.2% | +43.4% | 5,728 | 7,099 | +23.9% | +22.2% | ||||||
| Net Debt | 21,034 | 18,659 | -11.3% | -9.0% | 21,034 | 18,659 | -11.3% | -9.0% | ||||||
| Net Debt/EBITDA(3) | 1,1x | 0.9x | 1.1x | 0.9x | ||||||||||
*Details of the financial indicator adjustments are provided in Appendix 1.
► Customer base
The Group's customer bases continue to grow (up 9.1% year-on-year), reaching 68.4 million at the end of June 2020. This increase was due partly to the consolidation of Tigo Chad into the Group's scope since July 1, 2019.
► Revenue
At the end of June 2020, the Maroc Telecom Group had revenues (4) of 18,323 million dirhams, up 2.7% (stable on a like-for-like basis (1)). This performance, amid a crisis, was mainly due to the growth of Data Mobile and Mobile Money services from International activities and the surge of the Fixed-line Data in Morocco.
► Earnings from operations before depreciation and amortization
Maroc Telecom Group's EBITDA was 9,603 million dirhams at the end of June 2020, up 2.1% (up 1.4% on a like-for-like basis(1)), thanks to the 1.6 pt improvement (up 1.3 pt on a like-for-like basis(1)) in the gross margin. The EBITDA margin was 52.4%, up 0.7 pt on a like-for-like basis(1).
► Earnings from operations
At the end of the first six months of 2020, the adjusted EBITA(5) of Maroc Telecom Group was 5,836 million dirhams, up 0.2% on a like-for-like basis(1).
► Group share of Net Income
The Group share of adjusted Net Income was 3,006 million dirhams, up 1.5% on a like-for-like basis(1).
► Investments
Capital expenditures(2) excluding frequencies and licenses were down 37.6% year-on-year (down 43.6% on a like-for-like basis(1)), due to the adjustment of investments to the current environment.
► Cash Flow
Adjusted cash flows from operations (CFFO)(6) was 7,099 million dirhams, up 23.9% (up 22.2% on a like-for-like basis(1)) due to higher EBITDA and Capex decrease.
At the end of June 2020, the Group's consolidated net debt(7) decreased by 11.3% to 18,659 million dirhams. It represents 0.9x times its annual EBITDA(3).
► COVID-19 pandemic
The management of the health crisis by the Maroc Telecom Group was marked by rapid key decisions and the active mobilization of teams, including:
- The strengthening of hygiene, distancing measures and the use of teleworking (collaborative work tools with remote access are made available to employees);
- The promotion of digitization tools to encourage customers and partners to interact with the company via the various online services (orders, payment & service modification, bid submission, etc.);
- Control of the supply chain (commercial and technical) while meeting replenishment and customs clearance deadlines;
- Good management of business continuity, networks and information systems.
However, the impact of the Covid-19 pandemic on the growth forecasts for the Moroccan economy are significant (5.2% contraction in 2020 forecast by Bank Al-Maghrib) with likely repercussions on the growth momentum of Maroc Telecom's activities.
As part of the communal drive to manage the Covid-19 pandemic, some subsidiaries also participated in the collective effort with contributions to the funds set up by the authorities of each country.
► Highlights
On June,1st 2020, Maroc Telecom launched its mobile payment solution through its subsidiary "MT Cash". The solution offers many financial services, comparable to those available to customers with bank accounts, which users can access safely and easily from a mobile phone.
Source: https://finance.yahoo.com/news/maroc-telecom-h1-2020-consolidated-062329610.html