Maroc Telecom : H1 2018 Consolidated Results


  • Acceleration of growth of the Group customer base (nearly 10.0%), exceeding 60 million customers;
  • Sustained growth in consolidated results: revenues andGroup share of net income increased by 5.0% and 8.6% respectively over the first six months of the year;
  • In Morocco, sustained growth in the Fixed-line and Mobile businesses, with revenues up 5.0% in the second quarter;
  • Further revenue growth for Mobile in Morocco thanks to the popularity of Mobile Internet;
  • Continued strong growth of the Sub-Saharan subsidiaries, which sales increased by 7.4% in the first half of 2018.

Improved outlook for 2018, at constant scope and exchange rates:

  • Increase in revenues;
  • Increase in EBITDA;
  • Maximum CAPEX of 20% 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 confirms the return of the growth of its activities in Morocco. This positive trend can be attributed to its investment policy and its efforts to differentiate itself through the excellence of its networks and services. Combined with the sustained growth of its subsidiaries, it gives the Group faith to achieve its objectives for the year and enables it to raise its outlook accordingly.”

Customer base

At June 30, 2018, the Group’s customer base stood at more than 60 million customers, up 9.7% year-on-year, driven by sustained growth in both the subsidiaries’ customer base (+13.6%) and the Mobile and Fixed high speed customer base in Morocco .

  • Revenues

Maroc Telecom Group’s consolidated revenues(3) at June 30, 2018 amounted to MAD  17,939  million, up 5.0% (+3.3% at constant exchange rates) compared to the first half of 2017. This performance was driven by sustained revenue growth from operations in Morocco, combined with the growth of international subsidiaries.

  • Earnings from operations before depreciation and amortization

Maroc Telecom’s earnings from operations before depreciation and amortization (EBITDA) for the first six months of 2018 amounted to MAD 8,860 million, up 4.0% (+2.7% at constant exchange rates), due to EBITDA growth in both Morocco and the subsidiaries. The EBITDA margin remained high at 49.4%.

  • Earnings from operations

At the end of June 2018, Maroc Telecom’s adjusted consolidated earnings from operations (EBITA)(4) amounted to MAD 5,540 million, up 4.8% (+3.7% at constant exchange rates) under the combined effect of the 4.0% increase in EBITDA and limited increase of depreciation and amortization expense. The operating margin was 30.9%, up 0.1 pt (at constant exchange rates).

  • Group share of net income

In the first half of 2018, the Group share of adjusted net income increased by 2.3% (+1.6% at constant exchange rates) compared to the first half of the previous year, mainly due to the strong increase in net income from operations in Morocco.

The Group share of published net income increased sharply by 8.6% at current exchange rates thanks to the growth of activities and restructuring charges recorded in the first half of 2017.

  •  Cash flow

Adjusted cash flow from operations (CFFO)(5) amounted to MAD 4,230 million, down 6.5% with investments (excluding frequencies and licenses) 3.2% up during the period, representing 17.4% of Group revenues.

At the end of June 2018, Maroc Telecom’s consolidated net debt(6) amounted to MAD 17 billion, up only 1% over the year. The cash generation coming from the Group’s activities enables the payment of MAD 6 billion of dividends to all Maroc Telecom group shareholders.

  • Exceptional highlights

On April 17, 2018, Maroc Telecom acquired 10% of Onatel’s share capital on the Abidjan Regional Stock Exchange for MAD 469 million, bringing its stake in the capital of its subsidiary in Burkina Faso to 61%.

In June 2018, Maroc Telecom’s subsidiary in Togo obtained a 2G/3G/4G Mobile license valid until the 31st of December 2036, for MAD 480 million, to be paid in three annual installments starting in July 2018.

  •  Improved outlook for 2018, at constant scope and exchange rates

On the basis of the recent changes in the market, to the extent that no new major exceptional event impacts the Group’s business, Maroc Telecom raised its outlook for 2018, at constant scope and exchange rates:

  • Increase in revenues.
  • Increase in EBITDA.
  • Maximum CAPEX of 20% of revenues, excluding frequencies and licenses.

The Fixed-line customer base improved by 6.5% year-on-year to 1.8 million lines and the ADSL customer base grew by 10.2% in one year to nearly 1.4 million subscriptions.

Fixed-line and Internet revenues increased by 4.8%, with 11.4% growth in Data revenues more than offsetting the decline in Voice revenues.

  • International

At the end of June 2018, the Group’s international operations generated revenues of MAD 8,146 million, up 7.4% (+3.7% at constant exchange rates). This increase was driven by the sustained revenue growth of the new subsidiaries, particularly in Ivory Coast, Benin and Togo, the return to growth of activities in Mali, and the increase in Data and Mobile Money usage.

During the first half of 2018, earnings from operations before depreciation and amortization (EBITDA) amounted to MAD 3,318 million, up 4.8% (+1.5% at constant exchange rates). The EBITDA margin amounted to 40.7%, down 0.9 pt at constant exchange rates due to the increase in the weight of regulatory taxes and fees, notably with the introduction of new taxes in Mali and Gabon.

During the same period, adjusted earnings from operations (EBITA) were MAD 1,861 million, up 3.7% (+0.6% at constant exchange rates) mainly due to the 4.8% increase in EBITDA. The adjusted operating margin declined by 0.7 pts (at constant exchange rates) to 22.8%.

The adjusted cash flow from operations (CFFO) from international operations was down 27.2% to MAD 1,044 million, due primarily to increased investment which supports the development of 3G and 4G technologies in the countries where licenses were obtained.

The first half of 2018 was marked by the payment of MAD 274 million for licenses in Ivory Coast and Gabon.
As a reminder the financial statements for the first half of 2017 included MAD 580 million disbursed under voluntary redundancy plans finalized during the same period. The first half of the year also included the payment of MAD 410 million corresponding to the second tranche of the overall license obtained in Ivory Coast in March 2016 for an amount of MAD 1.6 billion, and the disbursement of MAD 28 million under the second and final tranche of the 3G license in Togo.- Maroc Telecom SA

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