African subsidiaries stabilise Maroc Telecom's 2017 earnings

African subsidiaries stabilise Maroc Telecom's 2017 earnings

Businesses on the continent contributed 40% of the Group's turnover.

According to Maroc Telecom's earning report for 2017, while the company recorded a 0.8% reduction in turnover from US$3.84bn in 2016 to US$3.81bn in 2017 (due to a 3.6% reduction in earnings in Morocco where the company recorded MAD20.48bn), its African subsidiaries stabilised earnings by contributing approximately 40% of the group's turnover - an increase of 2.7% from 2016.

At the end of 2017, the company's earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 1.5%, up from MAD16.91bn in 2016 to MAD17.16bn in 2017.

Adjusted net income rose by 4.4% to over MAD5.87bn in 2017. This increase is partly attributed to the group's VoIP mobile applications and substantial growth in net income from African operations which recorded a turnover of MAD15.73b.

In 2017, Maroc Telecom recorded 5.5% growth in customer base, with over 57m subscribers. 18.5m of these are on Maroc Telecom mobile services (0.9% increase), which generated a turnover of MAD13.33bn in turnover, down by 5.5% from 2016 earnings.

The Group also achieved sustained 5.2% growth in fixed line service with 1.7m active lines which its internet connectivity achieved turnover revenue of MAD8.96bn, up 1.5% in 2016. Its adjusted operating cash flow also increased by 3.1%, so did capital expenditures which was about 23% of revenues, excluding frequencies and licenses.

Abdeslam Ahizoune, Chairman of the Group's Management Board, said, "The growth of Maroc Telecom Group's results demonstrates its resilience as well as its agility to anticipate market developments. Its high ability to control its costs and its profitable investment policy allow the Group to improve its margins particularly in the African subsidiaries."

He revealed that the company has set aside over MAD8bn in 2018 to roll out networks and introduce new solutions.