PRESS RELEASE
Rabat, July 26, 2023
H1 2023 CONSOLIDATED RESULTS
Half-year results beat targets:
- Consolidated revenues growth accelerated by 4.7% driven mainly by activities in Moov Africa subsidiaries (+8.5%);
- Strong growth in revenues from Mobile Data (+28.3%) and Mobile Money (+11.8%) at Moov Africa subsidiaries;
- Decline in ADSL revenues (-12.4%) due to the decrease in the ADSL customer base, offset by growth in FTTH revenues, in Morocco;
- Decline in Mobile Data revenues (-2.5%)in Morocco;
- Group EBITDA up 4.5%, driven by a 9.3% improvement in EBITDA at Moov Africa subsidiaries;
- Adjusted net income Group share up 2.3%.
Outlook for 2023 unchanged, at constant scope and exchange rates:
- Stable revenues;
- Stable EBITDA;
- CAPEX excluding frequencies and licenses of approximately 20% of revenues.
Maroc Telecom Group continues to grow its revenues, and exceeds its targets for the first half of 2023. This demonstrates the soundness of its fundamentals and its capacity to cope with increased competitive pressure in the markets in which it operates.
The Group's strategy based on the search for value, both in Morocco and internationally, relies on the quality of its networks and services, meeting the expectations of its customers, and enables it to maintain its leadership in a difficult environment.
The Group's performance, combined with tight cost control, contributes to ensure sustained profitability.
Maroc Telecom adopts a proactive approach, with notably a solid investment program, to respond to market developments and growing needs and usage of its customers.
1
Group adjusted consolidated results*:
Change at | |||||||||||
(IFRS in MAD millions) | Q2 2022 | Q2 2023 | Change | constant | |||||||
exchange | |||||||||||
rates(1) | |||||||||||
Revenues | 8,798 | 9,306 | 5.8% | 3.4% | |||||||
Adjusted EBITDA | 4,655 | 4,943 | 6.2% | 4.1% | |||||||
Margin (%) | 52.9% | 53.1% | 0.2 pt | 0.4 pt | |||||||
Adjusted EBITA | 2,928 | 3,161 | 8.0% | 6.1% | |||||||
Margin (%) | 33.3% | 34.0% | 0.7 pt | 0.9 pt | |||||||
Adjusted net income - | 1,371 | 1,408 | 2.6% | 1.3% | |||||||
Group share | |||||||||||
Margin (%) | 15.6% | 15.1% | -0.5 pt | -0.3 pt | |||||||
CAPEX(2) | 2,583 | 2,091 | -19.1% | -21.1% | |||||||
Of which frequencies and | 0 | 0 | |||||||||
licenses | |||||||||||
CAPEX/Revenues (excluding | 29.4% | 22.5% | -6.9 pt | -6.9 pt | |||||||
frequencies and licenses) | |||||||||||
Adjusted CFFO | 2,175 | 1,637 | -24.7% | -26.7% | |||||||
Net debt | 12,166 | 15,733 | 29.3% | 27.1% | |||||||
Net debt/EBITDA(3) | 0.6x | 0.7x |
* Adjustments to financial indicators are set out in Appendix 1.
Change at | |||||||||
H1 2022 | H1 2023 | Change | constant | ||||||
exchange | |||||||||
rates(1) | |||||||||
17,568 | 18,399 | 4.7% | 2.2% | ||||||
9,171 | 9,580 | 4.5% | 2.3% | ||||||
52.2% | 52.1% | -0.1 pt | 0.0 pt | ||||||
5,740 | 6,052 | 5.4% | 3.4% | ||||||
32.7% | 32.9% | 0.2 pt | 0.4 pt | ||||||
2,869 | 2,935 | 2.3% | 1.2% | ||||||
16.3% | 16.0% | -0.4 pt | -0.2 pt | ||||||
3,720 | 2,945 | -20.8% | -22.9% | ||||||
0 | 0 | ||||||||
21.2% | 16.0% | -5.2 pt | -5.2 pt | ||||||
5,326 | 5,037 | -5.4% | -7.5% | ||||||
12,166 | 15,733 | 29.3% | 27.1% | ||||||
0.6x | 0.8x | ||||||||
- Customer base
At June 30, 2023, the Group's customer base was nearly 75 million, a modest 0.5% decrease year- on-year.
- Revenues
At end-June 2023, Maroc Telecom Group achieved consolidated revenues(4) of MAD 18,399 million, an increase of 4.7% (+2.2% at constant exchange rates(1)) driven by increases in both international business up 8.5% (+3.3% at constant exchange rates(1)) and business in Morocco (+1.2%).
- Earnings from operations before depreciation and amortization
In the first half of 2023, consolidated adjusted earnings from operations before depreciation and amortization (EBITDA) for the Maroc Telecom Group came to MAD 9,580 million, up 4.5% (+2.3% at constant exchange rates(1)), thanks to improved revenues, the favorable impact of lower Mobile termination rates in some subsidiaries, and tight control of operating costs.
Adjusted EBITDA margin stood stable at the high level of 52.1%, stable year-on-year.
- Earnings from operations
Consolidated adjusted earnings from operations (EBITA)(5) for the first six months of 2023 totaled MAD 6,052 million, up 5.4% (+3.4% at constant exchange rates(1)). The adjusted EBITA margin was 32.9%, up by 0.4 pt at constant exchange rates(1).
2
- Net income Group share
Adjusted net income Group share for first half 2023 amounted to MAD 2,935 million, up 2.3% (+1.2% at constant exchange rates(1)).
- Investments
CAPEX(2) excluding frequencies and licenses amounted to MAD 2,945 million representing 16.0% of Group revenues, in line with its annual outlook.
- Cash flow
Adjusted net cash flows from operations (CFFO)(6) amounted to MAD 5,037 million, down 5.4% versus the first half of 2022 (-7.5% at constant exchange rates(1)).
As of June 30, 2023, Group consolidated net debt(7) was MAD 15,733 million, representing 0.8 times annualized EBITDA(3).
3
Group business review:
The adjustments to the "Morocco" and "International" financial indicators are explained in Appendix 1.
Morocco
(IFRS in MAD millions) | Q2 2022 | Q2 2023 | Change |
Revenues | 4,805 | 4,897 | 1.9% |
Mobile | 2,868 | 2,905 | 1.3% |
Services | 2,795 | 2,679 | -4.1% |
Equipments and other revenues | 73 | 226 | 207.7% |
Fixed | 2,383 | 2,439 | 2.3% |
Of which Fixed Data* | 987 | 1,080 | 9.4% |
Elimination and other income | -446 | -447 | |
Adjusted EBITDA | 2,753 | 2,791 | 1.4% |
Margin (%) | 57.3% | 57.0% | -0.3 pt |
Adjusted EBITA | 1,887 | 1,931 | 2.3% |
Margin (%) | 39.3% | 39.4% | 0.2 pt |
H1 2022 | H1 2023 | Change |
9,561 | 9,680 | 1.2% |
5,684 | 5,738 | 0.9% |
5,497 | 5,370 | -2.3% |
187 | 368 | 97.0% |
4,778 | 4,825 | 1.0% |
1,973 | 2,136 | 8.3% |
-901 | -883 | |
5,363 | 5,417 | 1.0% |
56.1% | 56.0% | -0.1 pt |
3,626 | 3,684 | 1.6% |
37.9% | 38.1% | 0.1 pt |
CAPEX(2) | 1,032 | 1,012 | -2.0% | 1,758 | 1,428 | -18.8% | |
Of which frequencies and licenses | 0 | 0 | 0 | 0 | |||
CAPEX/Revenues (excluding | 21.5% | 20.7% | -0.8 pt | 18.4% | 14.7% | -3.6 pt | |
frequencies and licenses) | |||||||
Adjusted CFFO | 1,271 | 749 | -41.1% | 3,190 | 2,810 | -11.9% | |
Net debt | 6,522 | 8,730 | 33.9% | 6,522 | 8,730 | 33.9% | |
Net debt/EBITDA(3) | 0.5x | 0.7x | 0.6x | 0.8x |
* Fixed Data includes the Internet, TV on ADSL and Data services to companies.
In the first half of 2023, revenues in Morocco rose by 1.2% versus the same period in 2022, to MAD 9,680 million. Fixed Data revenues continue to benefit from the FTTH boom, offsetting the decline in the Mobile services and ADSL.
Adjusted earnings from operations before depreciation and amortization (EBITDA) came to MAD 5,417 million, up 1.0% from the first half of 2022. The adjusted EBITDA margin remains high at 56.0%.
Adjusted earnings from operations (EBITA)(5) amounted to MAD 3,684 million, up 1.6% year-on-year. The adjusted EBITA margin came to 38.1%.
First half 2023 adjusted cash flows from operations (CFFO)(6) decreased by 11.9% to MAD 2,810 million.
4
Mobile
Unit | 6/30/2022 | |
Customer base(8) | (000) | 19,682 |
Prepaid | (000) | 17,285 |
Postpaid | (000) | 2,397 |
Of which Internet 3G/4G+(9) | (000) | 10,334 |
ARPU(10) | (MAD/month) | 45.5 |
6/30/2023
19,581
17,121
2,460
11,084
45.6
Change
-0.5%
-1.0%
2.6%
7.3%
0.1%
During the first half of 2023, the Mobile customer base(8) was 19.6 million customers, driven by the postpaid segment, which expanded by 2.6%.
Mobile revenues increased 0.9% versus first half 2022 to MAD 5,738 million.
Blended ARPU(10) was MAD 45.6 for the first six months of 2023, up slightly year-on-year (+0.1%).
Fixed-line and Internet
Unit | 6/30/2022 | |||
Fixed-line | (000) | 1,942 | ||
Broadband access(11) | (000) | 1,709 |
6/30/2023
1,853
1,632
Change
-4.6%
-4.5%
The Fixed-line customer base stand at almost 1.9 million lines as of June 30, 2023. The Broadband(11) customer base represents 1.6 million subscribers, with a substantial increase in the FTTH customer base (+43%).
Revenues from Fixed-line & Internet increased 1.0% in the first half of 2023, driven by 8.3% growth in the Data revenues offsetting decrease in Voice activities.
5
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Disclaimer
Maroc Telecom - Itissalat Al-Maghrib published this content on 26 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 July 2023 08:09:07 UTC.