The incumbent operator reports positive operational and financial results for the first quarter of 2024, reflecting sustained growth and robust performance despite a highly competitive market.
The growing activity in the Moov Africa subsidiaries, the growth of the group’s fixed very high speed and the cost optimization efforts allow Maroc Telecom to display resilient performance despite a very competitive environment. The historic operator is posting, in this first quarter of 2024, good operational and financial results, up compared to last year.
In addition, it continues to rely on an ambitious investment strategy to capitalize on the quality of its networks and differentiate itself both through performance and quality of service.
Customer growth and diversification
At the end of March 2024, the group’s customer base reached 77.1 million, marking an increase of 2.7%. Thus, Maroc Telecom’s consolidated turnover amounted to 9.1 billion dirhams (billion dirhams), recording an increase of 1.2% at constant exchange rate.
This increase is mainly driven by a 3.8% increase in international revenues, which partially offset the 1.3% drop in revenues in Morocco. For its part, adjusted EBITDA also saw an increase of 1.7% to reach MAD 4.65 billion, benefiting from an improvement in turnover and a continued reduction in operational costs in an inflationary context.
The adjusted EBITDA margin rate increased slightly, reaching 51.3%. Operating income before depreciation and amortization (EBITA) stood at MAD 2.88 billion, with growth of 0.9% at constant exchange rate. The adjusted operating margin rate remained stable at 31.8%. Net income reached MAD 1.53 billion, marking a slight increase of 0.5% at constant exchange rate.
At the same time, cash flow decreased by 15.5% compared to the same period of the previous year, standing at MAD 2.83 billion, mainly due to an increase in investments.
4.72 billion dirhams of turnover in Morocco
The 7.6% growth in fixed Internet activities, driven mainly by the performance of optical fiber (FTTH), partially offset the 4.2% decline in the mobile sector in Morocco. The turnover reached 4.72 billion dirhams, despite a drop of 1.3%. Adjusted EBITDA increased by 1.4%, reaching MAD 2.66 billion, thanks to effective management of operational expenses.
The adjusted EBITDA margin rate increased by 1.5 points to a high level of 56.4%. Adjusted operating profit (EBITA) grew by 4%, amounting to MAD 1.82 billion, benefiting from the increase in EBITDA. The adjusted EBITA margin rate reached 38.6%, up 2 points compared to 2023. At the end of March 2024, adjusted net operating cash flow decreased by 8.9%, amounting to MAD 1,878 million. The mobile base had 19.3 million customers, an increase of 0.9% year-on-year, with an increase of 3.4% in the post-paid segment during the same period.
However, mobile revenues declined by 4.2% compared to the previous year. The mixed ARPU was 42.7 dirhams, down 6.6% year-on-year. The fixed line sector had more than 1.7 million lines at the end of March 2024, down 8%. Fixed and Internet activities generated a turnover of MAD 2.5 billion, up 3.1% compared to 2023, thanks in particular to a 7.6% increase in Fixed Data revenue which compensated for the decline in Voice revenues.
Moov subsidiaries perform well
International activities generated a turnover of MAD 4.6 billion, up 3.8%, with a notable performance in the mobile and fixed data segments. The two grew, respectively, by 21.7% and 19.1%. Excluding the drop in call terminations, subsidiary revenues increased by 4.4%.
During the first quarter, operating income before depreciation and amortization (EBITDA) stood at MAD 1.99 billion, up 2% at constant exchange rate compared to the first quarter of 2023 thanks to the growth in turnover. Operating profit (EBITA) for the first quarter of 2024 reached MAD 1.06 billion, down 3.9%. Adjusted net operating cash flow stood at MAD 960 million at the end of March 2024, down 25.6% at constant exchange rate mainly due to the increase in investments.
Sanae Raqui / ECO Inspirations
