MAROC TELECOM: CONSOLIDATED RESULTS FOR THE 1st QUARTER 2024
HIBAPRESS-RABAT
Growing results for an encouraging start to the year:
» Growth in the Group’s customer base (+2.7%) to 77.1 million customers;
» Growth in consolidated turnover of 1.2%* driven by the performance of the subsidiaries;
» Increase in turnover from Mobile Data of the Moov Africa subsidiaries (+21.7%*) and Fixed Data in Morocco (+7.6% driven by the performance of the FTTH activity);
» Increase in the Group’s adjusted EBITDA of 1.7%*, with +1.4% for Morocco and +2.0%* for the subsidiaries;
» Maintaining a sustained level of Group investment.
The Maroc Telecom Group is posting good operational and financial results in this first quarter of 2024, up compared to last year.
The activity in the Moov Africa subsidiaries, the growth of the Group’s Very High Speed Broadband and the constant efforts to optimize costs allow the Group to display resilient performance despite a very competitive environment.
Maroc Telecom continues to rely on an ambitious investment strategy to capitalize on the quality of its networks and differentiate itself through performance and quality of service.
ADJUSTED CONSOLIDATED* RESULTS OF THE GROUP (IFRS in millions MAD) Q1 2023 Q1 2024 Variation
Change at constant exchange rate (1)
Turnover 9,093 9,066 -0.3% 1.2%
Adjusted EBITDA 4,637 4,655 0.4% 1.7%
Margin (%) 51.0% 51.3% 0.3 pt 0.2 pt
Adjusted EBITA 2,890 2,883 -0.3% 0.9%
Margin (%) 31.8% 31.8% 0.0 pt -0.1 pt
Adjusted Net Income Group Share 1,527 1,528 0.1% 0.5%
Margin (%) 16.8% 16.9% 0.1 pt -0.1 pt
CAPEX(2) 855 1,280 49.7% 52.4%
Including frequencies and licenses 0 0
CAPEX/CA (excluding frequencies and licenses) 9.4% 14.1% 4.7 pt 4.7 pt
Adjusted CFFO 3,400 2,838 -16.5% -15.5%
Net Debt 15,419 14,909 -3.3% -2.4%
Net debt/EBITDA(3) 0.8x 0.7x
*Adjustments to financial indicators are detailed in Appendix 1.
► Park
The Group’s customer base reached 77.1 million at the end of March 2024, up 2.7%.
► Turnover
As of March 31, 2024, the Maroc Telecom Group achieved consolidated revenue(4) of 9.1 billion dirhams, up 1.2% at constant exchange rate(1), supported by revenues at International which increased by 3.8% at constant exchange rate(1) and partly offset the drop in revenues in Morocco (-1.3%).
► Operating income before depreciation
At the end of March 2024, the Maroc Telecom Group’s adjusted operating income before depreciation and amortization (EBITDA) increased by 1.7% at constant exchange rate(1) to reach 4,655 million dirhams, thanks to the growth in revenue. business and ongoing efforts to control operational costs in an inflationary context.
The adjusted EBITDA margin rate remains at the high level of 51.3%, up 0.2 pt at constant exchange rate(1)
► Operating result
At the end of March 2024, the adjusted operating income (EBITA)(5) of the Maroc Telecom Group stood at 2,883 million dirhams, up 0.9% at constant exchange rate(1)
. The adjusted operating margin rate stands at 31.8%► Net income Group share
In the first quarter of 2024, Group share of adjusted net income stood at 1,528 million dirhams, up 0.5% at constant exchange rate(1)
.► Cash Flow
Adjusted net operating cash flow (CFFO(6)) stood at 2,838 million dirhams, down 15.5% at constant exchange rate(1) compared to the same period of 2023 due to the increase in investments. REVIEW OF THE GROUP’S ACTIVITIES
The adjustments to the “Morocco” and “International” financial indicators are detailed in Appendix 1.
Morocco (IFRS in millions MAD) Q1 2023 Q1 2024 Variation
Turnover 4,783 4,723 -1.3%
Mobile 2,833 2,713 -4.2%
Services 2,691 2,586 -3.9%
Equipment and other income 142,126 -11.1%
Fixed 2,386 2,461 3.1%
Including Fixed Data* 1,056 1,137 7.6%
Disposal and other income -436 -450
Adjusted EBITDA 2,626 2,662 1.4%
Margin (%) 54.9% 56.4% 1.5 pt
Adjusted EBITA 1,753 1,824 4.0%
Margin (%) 36.7% 38.6% 2.0 pt
CAPEX(2) 416,529 26.9%
Including frequencies and licenses 0 0
CAPEX/CA (excluding frequencies and licenses) 8.7% 11.2% 2.5 pt
Adjusted CFFO 2,061 1,878 -8.9%
Net Debt 8,539 7,038 -17.6%
Net debt/EBITDA(3) 0.8x 0.6x
*Fixed Data includes the Internet, TV on ADSL and Data services for businesses.
At the end of March 2024, activities in Morocco showed a decrease of 1.3% and reached 4,723 million dirhams. The growth in Fixed Internet activities (+7.6% driven by the performance of FTTH activity) partially offsets the decline in Mobile in Morocco (-4.2%).
Adjusted operating profit before depreciation (EBITDA) amounted to 2,662 million dirhams, up 1.4% compared to the same period of the previous year thanks to the control of operating expenses. The adjusted EBITDA margin rate increased by 1.5 points year-on-year and stood at a high level of 56.4%.
Adjusted operating income (EBITA)(5) came to 1,824 million dirhams, up 4.0% thanks in particular to the increase in EBITDA. The adjusted EBITA margin rate stood at 38.6%, up 2.0 pt compared to 2023.
At the end of March 2024, adjusted net operating cash flow (CFFO(6)) fell by 8.9% to reach 1,878 million dirhams.
Mobile
Unit 03/31/2023 03/31/2024 Variation
Park(8) (000) 19,159 19,323 0.9%
Prepaid (000) 16,719 16,800 0.5%
Postpaid (000) 2,440 2,523 3.4%
Including 3G/4G+ Internet(9) (000) 10,939 11,153 2.0%
ARPU(10) (MAD/month) 45.7 42.7 -6.6%
At the end of March 2024, the Mobile customer base(8) had 19.3 million customers, up 0.9% year-on-year with the postpaid customer base up 3.4% over the same period.
At the end of the first quarter of 2024, Mobile turnover showed a decrease of 4.2% compared to the same period of the previous year.
The mixed ARPU(10) at the end of March 2024 amounted to 42.7 dirhams, down 6.6% year-on-year.
Landline and Internet
Unit 03/31/2023 03/31/2024 Variation
Landlines (000) 1,899 1,747 -8.0%
Broadband Access(11) (000) 1,677 1,536 -8.5%
The fixed base stood at more than 1.7 million lines at the end of March 2024, down 8.0%.
Fixed and Internet activities generate a turnover of 2.5 billion dirhams, up 3.1% compared to 2023. The growth of Fixed Data (+7.6%) offsets the decline in Voice .
International
Financial indicators (IFRS in millions MAD) Q1 2023 Q1 2024 Variation
Change at constant exchange rate (1)
Turnover 4,593 4,632 0.8% 3.8%
Including Mobile services 4,238 4,248 0.3% 3.2%
Adjusted EBITDA 2,011 1,993 -0.9% 2.0%
Margin (%) 43.8% 43.0% -0.8 pt -0.8 pt
Adjusted EBITA 1,137 1,059 -6.9% -3.9%
Margin (%) 24.8% 22.9% -1.9 pt -1.9 pt
CAPEX(2) 438,751 71.4% 76.5%
Including frequencies and licenses 0 0
CAPEX/CA (excluding frequencies and licenses) 9.5% 16.2% 6.7 pt 6.7 pt
Adjusted CFFO 1,339,960 -28.3% -25.6%
Net Debt 7,135 7,936 11.2% 13.2%
Net debt/EBITDA(3) 0.8x 0.9x
During the first quarter of 2024, the Group’s international activities recorded a turnover of 4.6 billion dirhams, up 3.8% at constant exchange rate(1), driven by growth in Mobile Data (+21.7% at constant exchange rate(1)) and
Fixed Data (+19.1% at constant exchange rate(1)). Excluding the drop in call terminations, subsidiary revenues increased by 4.4% at constant exchange rate(1)
Over the same period, adjusted operating income before depreciation and amortization (EBITDA) stood at 1,993 million dirhams, up 2.0% at constant exchange rate(1) compared to the first quarter of 2023 thanks to growth in turnover.
Adjusted operating profit (EBITA)(5) for the first quarter of 2024 reached 1,059 million dirhams, down 3.9% at constant exchange rate(1)
.Adjusted net operating cash flow (CFFO(6)) stood at 960 million dirhams at the end of March 2024, down 25.6% at constant exchange rate(1) mainly due to the increase in investments operational indicators
Unit 03/31/2023 03/31/2024 Variation
Mobile
Park(8) (000) 51,780 53,872
Mauritania 2,735 2,339 -14.5%
Burkina Faso 10,994 11,691 6.3%
Gabon 1,570 1,636 4.2%
Mali 9,009 8,479 -5.9%
Ivory Coast 10,193 10,650 4.5%
Benin 5,515 6,050 9.7%
Togo 2,824 2,917 3.3%
Niger 2,924 3,425 17.1%
Central African Republic 219,268 22.2%
Chad 5,797 6,418 10.7%
Fixed
Park (000) 363 391
Mauritania 46 21 -54.7%
Burkina Faso 76 71 -6.0%
Gabon 46 57 22.4%
Mali 195 242 24.2%
Fixed Broadband
Park (11) (000) 165 219
Mauritania 20 23 15.5%
Burkina Faso 17 31 86.9%
Gabon 43 54 27.3%
Mali 86 110 28.1%
Appendix 1: Transition from adjusted financial indicators to published financial indicators
Adjusted EBITDA, Adjusted EBITA, Adjusted Net Profit Group Share and Adjusted CFFO are indicators of a non-strictly accounting nature and should be considered as additional information. They better illustrate the Group’s performance by excluding exceptional items.
Q1 2023 Q1 2024 (in millions MAD) Maroc International Group Maroc International Group Adjusted EBITDA 2,626 2,011 4,637 2,662 1,993 4,655
Exceptional charges -70 -70
Published EBITDA 2,626 2,011 4,637 2,592 1,993 4,585
Adjusted EBITA 1,753 1,137 2,890 1,824 1,059 2,883
Exceptional charges -70 -70
Published EBITA 1,753 1,137 2,890 1,754 1,059 2,813
Adjusted net income Group share 1,527 1,528
Increase in the IS rate -15
Exceptional charges -50
Published net income Group share 1,527 1,463
Adjusted CFFO 2,061 1,339 3,400 1,878 960 2,838
Exceptional charges -70 -70
CFFO published 2,061 1,339 3,400 1,808 960 2,768
Appendix 2: Impact of IFRS 16
At the end of March 2024, the impacts of the application of IFRS16 on Maroc Telecom’s main indicators are as follows:
Q1 2023 Q1 2024 (in millions MAD) Maroc International Group Maroc International Group Adjusted EBITDA 65 78 143 67 76 143
Adjusted EBITA 4 11 15 2 12 14
Adjusted Net Income Group Share -3 -5
Adjusted CFFO 65 78 143 67 76 143
Net Debt 792 824 1,615 809 777 1,586
