PRESS RELEASE
Rabat, 23 April 2021
CONSOLIDATED RESULTS FOR THE 1st QUARTER 2021
Results driven by solid performances in subsidiaries:
- Increase in the Group's customer base by 6.8%, more than 73 million customers;
- Profitability maintained with the Group's adjusted EBITDA margin at 51.2%;
- Growth in Mobile Data (+15.8%*) and Mobile Money services (+21.9%*) in the Moov Africa subsidiaries;
- Sustained growth in Fixed Data in Morocco of +11.9%.
To mark the publication of the quarterly results, Mr Abdeslam Ahizoune, Chairman of the Management Board, stated:
"In a context still marked by the health crisis linked to Covid-19, the Maroc Telecom Group ends the first quarter with operating results driven by its international assets. Its diversification strategy is once again proving itself and improving its resilience in this context of crisis.
The Group is continuing its savings plan and is managing to maintain its profitability and focuses
its investments on strengthening networks, infrastructure and improving the quality of service.
While this crisis' duration and effect on the economy are still unknown, the Group will remain vigilant and fully mobilised in order to overcome it."
* At constant exchange rates MAD/Ouguiya/CFA franc
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THE GROUP'S ADJUSTED CONSOLIDATED RESULTS*
(IFRS in MAD million) | Change | |||||||||
Q1 2020 | Q1 2021 | Change | at constant | |||||||
exchange | ||||||||||
rates (1) | ||||||||||
Revenues | 9,309 | 8,914 | -4.2% | -5.0% | ||||||
Adjusted EBITDA | 4,794 | 4,561 | -4.9% | -5.5% | ||||||
Margin (%) | 51.5% | 51.2% | -0.3 pt | -0.3 pt | ||||||
Adjusted EBITA | 2,913 | 2,746 | -5.7% | -6.2% | ||||||
Margin (%) | 31.3% | 30.8% | -0.5 pt | -0.4 pt | ||||||
Group share of adjusted Net Income - | 1,597 | 1,474 | -7.7% | -8.1% | ||||||
Margin (%) | 17.2% | 16.5% | -0.6 pt | -0.6 pt | ||||||
CAPEX(2) | 527 | 418 | -20.7% | -21.3% | ||||||
Of which frequencies and licences | 0 | 0 | ||||||||
CAPEX/revenues (excluding frequencies and licences) | 5.7% | 4.7% | -1.0 pt | -1.0 pt | ||||||
Adjusted CFFO | 2,893 | 2,681 | -7.3% | -8.1% | ||||||
Net debt | 19,463 | 16,132 | -17.1% | -17.3% | ||||||
Net debt/EBITDA(3) | 1.0x | 0.8x |
* The adjustments to the financial indicators are detailed in Appendix 1
- Customer base
The Group's customer base reached more than 73 million at the end of March 2021, up 6.8% year-on-year, driven by the sustained growth of the customer base in the subsidiaries (+11.2%).
- Revenues
In a difficult context, marked by the consequences of the Covid-19 crisis and the regulatory environment, the Maroc Telecom Group generated consolidated revenues (4) of MAD 8,914 million at the end of March 2021, down 4.2% (-5.0% at constant exchange rates (1)). The decline in the Mobile business in Morocco is partially offset by sound growth in Fixed Broadband in Morocco and the activities of the Moov Africa subsidiaries.
- Earnings from operations before depreciation and amortization
In the first quarter of 2021, the earnings from operations before depreciation and amortization (EBITDA) of the Maroc Telecom Group reached MAD 4,561 million, down 4.9% (-5.5% at constant exchange rates(1)), under the effect of the decrease in revenues. The EBITDA gross margin was held at a high level of 51.2% (-0.3 pt at constant exchange rates(1)), thanks to rigorous cost management.
- Earnings from operations
The consolidated adjusted earnings from operations (EBITA)(5) of the Maroc Telecom Group for the first three months of 2021 was MAD 2,746 million, down 5.7% (-6.2% at constant exchange
rates(1)) on a trend similar to that of the EBITDA. Adjusted EBITA margin stands at a high level of 30.8% (-0.4 pt at constant exchange rates(1)).
- Net income - Group share
At the end of March 2021, the Group share of adjusted Net Income decreased by 7.7% (-8.1% at constant exchange rates(1)) compared to the same period the previous year, to MAD 1,474 million.
- Cash flow
The adjusted net cash flow from operations (CFFO)(6) amounted to MAD 2,681 million, down 7.3% compared to the same period in 2020 (-8.1% at constant exchange rates(1)), mainly due to the fall in EBITDA.
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(IFRS in MAD million) | Q1 2020 | Q1 2021 | Change | ||
Revenues | |||||
5,400 | 4,889 | -9.5% | |||
Mobile | 3,545 | 2,966 | -16.3% | ||
Services | 3,432 | 2,876 | -16.2% | ||
Equipment | 113 | 91 | -19.3% | ||
Fixed | 2,319 | 2,370 | 2.2% | ||
Of which Fixed Data* | 813 | 910 | 11.9% | ||
Elimination and other income | -463 | -447 | - | ||
Adjusted EBITDA | 2,972 | 2,672 | -10.1% | ||
Margin (%) | 55.0% | 54.7% | -0.4 pt | ||
Adjusted EBITA | 1,991 | 1,744 | -12.4% | ||
Margin (%) | 36.9% | 35.7% | -1.2 pt | ||
CAPEX(2) | 283 | 207 | -26.8% | ||
Of which frequencies and licences | 0 | 0 | |||
CAPEX/revenues (excluding frequencies and licences) | 5.2% | 4.2% | -1.0 pt | ||
Adjusted CFFO | 1,620 | 1,221 | -24.6% | ||
Net debt | 12,896 | 11,032 | -14.5% | ||
Net debt/EBITDA(3) | 1.0x | 1.0x |
*Fixed Data includes the Internet, TV on ADSL and Data services to businesses. A change in the method of calculation was made on an element of the Fixed Data affecting the previous period.
The activities in Morocco show a decline in the 1st quarter of 2021 revenues (-9.5% compared to the same period in 2020). The increase in Fixed revenues (+2.2%), driven by Data, could not fully offset the sharp downturn in Mobile income (-16.3%), penalised by the effects of competition and regulatory context on the prepaid Data segment in particular.
The adjusted earnings from operations before depreciation and amortisation (EBITDA) reached MAD 2,672 million, down 10.1%. The EBITDA margin, although down slightly by 0.4 pt, remains at a high level of 54.7%.
The adjusted earnings from operations (EBITA)(5) was MAD 1,744 million, down 12.4% over the year. The adjusted EBITA margin was down by 1.2 pt at 35.7%.
At 31 March 2021, the adjusted net cash flows from operations (CFFO)(6) in Morocco contracted by 24.6% to MAD 1,221 million mainly due to the fall in EBITDA.
4
Mobile
Unit | Q1 2020 | Q1 2021 | Change | ||
Customer base(7) | (000) | 19,972 | 19,335 | -3.2% | |
Prepaid | (000) | 17,624 | 17,011 | -3.5% | |
Postpaid | (000) | 2,348 | 2,324 | -1.0% | |
Of which Internet 3G/4G+(8) | (000) | 11,888 | 10,841 | -8.8% | |
ARPU(10) | (MAD/month) | 56.1 | 48.7 | -13.2% |
At 31 March 2021, the Mobile customer base(7) had 19.3 million customers, down 3.2% year-on- year.
Mobile revenues fell by 16.3% compared to the same period in 2020, reaching MAD 2,966 million. Outgoing services revenues declined due to regulatory and competitive context, particularly in the prepaid data segment, while incoming services revenues was impacted by call termination rate cuts (-35%) and continued to suffer from the effects of the covid-19 pandemic on the international and roaming business.
Combined ARPU(9) for the first three months of 2021 fell by 13.2% compared to the same period in 2020, to MAD 48.7.
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Maroc Telecom - Itissalat Al-Maghrib published this content on 23 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 April 2021 05:19:03 UTC.