Maroc Telecom Group’s revenues increased by 0.8 percent to MAD 17.94 billion in the first half of 2019 thanks to business growth in Morocco, which offset the decline in mobile call termination rates and incoming international revenue at subsidiaries. It ended the half year with nearly 63 million subscribers, up 3.9 percent on the same period the previous year.
The increase in subscribers was in both the mobile and fixed line customer base in Morocco (up 3.2% and 3.6%) as well as at subsidiaries (up 4.1%).
Adjusted net income rose 1.5 percent to MAD 3.48 billion ,and the group’s share of adjusted net income was MAD 3.02 billion, up by 1.8 percent. Excluding frequencies and licences, the optimisation of capital expenditures led to a capex-revenue ratio of 10.7 percent, in line with targets.
Group EBITDA increased by 6.2 percent to MAD 9.41 billion. The EBITDA margin improved by 2.1 points to 51.5 percent.
Looking at recent market changes and assuming no major, exceptional event, Maroc Telecom maintains its forecasts for 2019, at constant scope and exchange rates and excluding IFRS 16. It expects stable revenues and EBITDA and capex of around 15 percent of revenue excluding frequencies and licences.
In domestic operations in Morocco, the mobile customer base was 19.5 million customers, up 3.2 percent year-on-year, driven by the growth of 18.3 percent in the postpaid base, and of 1.6 percent in the prepaid base. Revenue increased by 1.4 percent to MAD 10.71 billion from MAD 10.56 billion in 2018.
Blended ARPU was MAD 57.5 for the first six months of 2019, unchanged from the same period the previous year. The fixed line customer base is at 1.9 million lines, up 3.6 percent, and broadband subscribers rose by 6.2 percent to 1.5 million lines.
Domestic EBITDA increased by 10.7 percent to MAD 6.14 billion from MAD 5.54 billion in 2018, up 10.7 percent excluding the impact of the application of IFRS16.
International activity revenue was MAD 7.82 billion, down 1.0 percent at constant exchange rates, mainly due to the decline in mobile call termination rates and lower incoming international revenue facing indirect competition from OTT services. Excluding the impact of the decline in call termination rates, revenues from international activities are up 0.7 percent at constant exchange rates.
EBITDA amounted to MAD 3.27 billion, down 1.4 percent reflecting the combined effect of the decline in revenues and the weight of taxes and regulatory fees, which represented 4.2 percent of EBITDA. The EBITDA margin was stable compared with the same period of 2018.