Driven by the momentum of its African subsidiaries and despite a decline in its land, the Moroccan incumbent now has an impressive customer portfolio of 73 million mobile subscribers, up 3.3%. At the end of September, consolidated sales amounted to nearly 2.6 billion euros. With an EBITDA margin of 51.6%, the group has one of the very first profitabilities in the sector.
Despite a context still marked by the impact of the Covid-19 pandemic on the economy, the Maroc Telecom group was able to maintain performance in the third quarter. In difficulty on its Moroccan bases, it is above all its African subsidiaries Moov Africa that have enabled the operator to do better than resist, thus consolidating its international development strategy. On the commercial level, the growth of the group’s Mobile customer base of 3.3% over one year to reach the trifle of 73 million subscribers at the end of September 2021, is mainly due to the dynamism of Moov Africa, whose customer portfolio marks an increase of 4.2% in one year.
The group’s consolidated turnover during the first nine months of 2021 stood at 26.79 billion dirhams, or 2.6 billion euros, down 2.6%. This decline is the consequence of strong downward pressure on tariffs and the decline in revenues from mobile services on the Moroccan market. The good momentum of international activities and of fixed data in Morocco partially compensates for this dropout, underlines the press release published by Maroc Telecom. In the third quarter alone, consolidated sales showed virtual stability (-0.5% at constant exchange rates), driven by the growth achieved by subsidiaries over the quarter (+ 2% at constant exchange rates).
The group’s adjusted operating income (EBITDA) at the end of the first nine months of 2021, amounted to 8.5 billion dirhams (840 million euros), down 2.4%. On the other hand, the operating margin – the key indicator which provides information on cost control – stabilized and stood at 31.7% of turnover. This is one of the highest levels in the world across all industries. Net income group share stood at 4.3 billion dirhams, or 400 million euros, down 5%. However, the group remains within its “standards” of recent years.
Internationally, the activities of the group’s subsidiaries continue to grow and generate a turnover of 12.68 billion dirhams (1.2 billion euros) at the end of September 2021. Mobile data and Mobile services Money are the main growth levers, posting spectacular growth of 17.4% and 24.1% respectively. Adjusted operating profit before depreciation (EBITDA) for the first nine months of the year of Moov Africa amounted to 5.57 billion dirhams (540 million euros), an increase of 3.3% (+4.4 % at constant exchange rates).
FRAMES
Less sovereign over his lands
In the Moroccan market, revenues from the group’s activities amounted to 14.88 billion dirhams (1.44 billion euros) in the first nine months of 2021, down 5.4%. This decline is explained by the small form of Mobile services, a market in which the operator faces stiff competition from Orange Maroc, a subsidiary of the Orange group, and Inwi, a subsidiary of the royal holding Al Mada. The turnover of the Mobile activities is down 9.2%. Incoming revenues continue to suffer from the decline in domestic call terminations while outgoing revenues are impacted by the regulatory and competitive environment. At the end of the first nine months of 2021. The average income per customer amounts to 49.5 dirhams (4.5 euros), down 10.2% year on year. The continued growth of Fixed data (+ 7.8%), however, mitigates the effects of the underperformance of Mobile.
As a result of the decline in Mobile in Morocco, adjusted operating income before amortization (EBITDA) contracted by 7.9%, suffering the effects of the drop in turnover.
Maroc Telecom’s mobile fleet in the Moroccan market recorded an increase of 1.6% over one year to reach more than 20 million customers thanks to an upturn in activity observed in the third quarter after the reopening of borders.
The Fixed line fleet is almost stable over one year, at nearly 2 million lines. Broadband customer base grew by 1.8%, reaching 1.7 million subscribers driven by the explosion of fiber optic line installations (+ 53%). This is undoubtedly the effect of teleworking and “home schooling” which has prompted many households to equip themselves with high-speed internet connections.
The Fixed-line and Internet activities in Morocco achieved a turnover of 7.06 billion dirhams (nearly 680 million euros), a slight decrease of 0.5% compared to the same period of 2020. The growth of 7.8% of fixed data largely compensates for the decline in voice, explains Maroc Telecom management.
