CONSOLIDATED RESULTS AT
Operating results in line with objectives thanks to strong performances at the subsidiaries:
- 8.1% growth of the Group's customer base, to nearly 73 million customers;
- Growth in the revenues of the Moov Africa subsidiaries (+1.4% on a like-for-like basis*), driven by Data Mobile and Mobile Money services;
- Sustained growth in Fixed Data in
Morocco (+13.2%); - Increased profitability with an adjusted EBITDA margin for the Group of 51.9%, an improvement of +0.7 pt on a like-for-like basis*.
Proposed dividend payment of MAD 3.5 billion, implying MAD 4.01 per share, representing a yield of 2.8%**.
- Decrease in revenues;
- Decrease in EBITDA;
- CAPEX of maximum 15% of revenues, excluding frequencies and licences.
To mark the publication of this press release, Mr
« In 2020, the
In
The digitisation project launched by the Group continues and has proved its effectiveness in front of the constraints imposed by the pandemic. »
* The like-for-like basis illustrates the consolidation effects of Moov Africa Chad and the use of a constant exchange rate MAD/Ouguiya/Franc CFA
** Based on the share price of February,18th 2021 (MAD 145.30)
adjusted consolidated results* of the group
(IFRS in MAD million) | Q4-2019 | Q4-2020 | Change | Change on like-for-like basis(1) | 2019 | 2020 | Change | Change on like-for-like basis(1) |
Revenues | 9,209 | 9,271 | +0.7% | +0.4% | 36,517 | 36,769 | +0.7% | -0.8% |
Adjusted EBITDA | 4,525 | 4,740 | +4.8% | +4.6% | 18,922 | 19,100 | +0.9% | +0.5% |
Margin (%) | 49.1% | 51.1% | +2.0 pt | +2.1 pt | 51.8% | 51.9% | +0.1 pt | +0.7 pt |
Adjusted EBITA | 2,552 | 2,886 | +13.1% | +13.1% | 11,540 | 11,598 | +0.5% | +0.8% |
Margin (%) | 27.7% | 31.1% | +3.4 pt | +3.5 pt | 31.6% | 31.5% | -0.1 pt | +0.5 pt |
Group share of adjusted Net Income - | 1,382 | 1,475 | +6.7% | +6.7% | 6,029 | 6,001 | -0.5% | -0.4% |
Margin (%) | 15.0% | 15.9% | +0.9 pt | +0.9 pt | 16.5% | 16.3% | -0.2 pt | +0.1 pt |
CAPEX(2) | 2,184 | 1,417 | -35.1% | -34.9% | 6,788 | 3,448 | -49.2% | -50.6% |
Of which frequencies and licences | 102 | 124 | 1,418 | 135 | ||||
CAPEX/revenues (excluding frequencies and licences) | 22.7% | 13.9% | -8.7 pt | -8.7 pt | 14.7% | 9.0% | -5.7 pt | -5.5 pt |
Adjusted CFFO | 4,185 | 4,498 | +7.5% | +7.4% | 13,352 | 15,719 | +17.7% | +17.8% |
Net debt | 17,350 | 17,619 | +1.6% | +2.4% | 17,350 | 17,619 | +1.6% | +2.4% |
Net debt/EBITDA(3) | 0.9x | 0.9x | 0.9x | 0.8x |
*The adjustments to the financial indicators are detailed in Appendix 1.
► Customer base
The Group's customer base grew by 8.1% in 2020, reaching nearly 73 million customers, due to the growth of the customer bases of the Moov Africa subsidiaries and Fixed in
► Revenues
In the fourth quarter alone and despite the decrease in Mobile call termination rates in
► Earnings from operations before depreciation and amortization
At the end of
► Earnings from operations
At the end of 2020, Maroc Telecom Group’s adjusted earnings from operations (EBITA)(5) amounted to MAD 11,598 million, up 0.8% on a like-for-like basis(1), thanks to the increase in EBITDA. The adjusted EBITA margin stood at 31.5%, up 0.5 pt on a like-for-like basis(1).
► Group share of Net Income
The adjusted Group share of Net Income decreased slightly by 0.4% on a like-for-like basis(1).
► Investments
The capital expenditures(2) excluding frequencies and licenses, down 38.3% over one year, were adapted to the context of the health crisis and focused on meeting strong demand for Fixed Internet access, extensions of Data infrastructures, and quality of service. They represent 9.0% of revenues, a level in line with the objective announced for the year.
► Cash flow
Adjusted Cash Flow From Operations (CFFO)(6) improved by +17.8% on a like-for-like basis(1), reaching MAD 15,719 million mainly due to the decrease in investments.
At
► Highlights of the fourth quarter
In
In
The new visual identity “Moov Africa” was launched on
► Dividend
At the General Meeting of Shareholders of
►
Based on recent market developments and insofar as no new major exceptional event disrupts the Group's activity,
- Decrease in revenues;
- Decrease in EBITDA;
- CAPEX of maximum 15% of revenues, excluding frequencies and licences.
review of the Group's activities
The adjustments to the "Morocco" and "International" financial indicators are detailed in Appendix 1.
·Morocco
(IFRS in MAD million) | Q4-2019 | Q4-2020 | Change | 2019 | 2020 | Change | |
Revenues | 5,378 | 5,152 | -4.2% | 21,690 | 20,881 | -3.7% | |
Mobile | 3,557 | 3,219 | -9.5% | 14,276 | 13,351 | -6.5% | |
Services | 3,523 | 3,084 | -12.4% | 14,046 | 13,009 | -7.4% | |
Equipment | 35 | 135 | ns | 230 | 342 | +48.9% | |
Fixed | 2,306 | 2,424 | +5.1% | 9,261 | 9,517 | +2.8% | |
Of which Fixed Data* | 886 | 966 | +9.1% | 3,186 | 3,608 | +13.2% | |
Elimination and other income | -485 | -491 | -1,846 | -1,987 | |||
Adjusted EBITDA | 2,948 | 2,979 | +1.1% | 12,294 | 11,950 | -2.8% | |
Margin (%) | 54.8% | 57.8% | +3.0 pt | 56.7% | 57.2% | +0.5 pt | |
Adjusted EBITA | 1,917 | 2,024 | +5.6% | 8,294 | 8,079 | -2.6% | |
Margin (%) | 35.6% | 39.3% | +3.6 pt | 38.2% | 38.7% | +0.5 pt | |
CAPEX(2) | 1,289 | 584 | -54.7% | 3,022 | 1,466 | -51.5% | |
Of which frequencies and licences | 102 | 102 | |||||
CAPEX/revenues (excluding frequencies and licences) | 22.1% | 11.3% | -10.8 pt | 13.5% | 7.0% | -6.4 pt | |
Adjusted CFFO | 3,000 | 3,246 | +8.2% | 9,425 | 10,300 | +9.3% | |
Net debt | 11,101 | 11,515 | +3.7% | 11,101 | 11,515 | +3.7% | |
Net debt/EBITDA(3) | 0.9x | 0.9x | 0.8x | 0.9x |
*Fixed Data includes the Internet, TV on ADSL and Data services to businesses
The Group's activities in
At the end of 2020, the adjusted earnings from operations before depreciation and amortisation (EBITDA) amounted to MAD 11,950 million, down 2.8% compared with 2019. The adjusted EBITDA margin increased by 0.5 pt to a high level of 57.2%, thanks to the control of operating costs.
The adjusted earnings from operations (EBITA)(5) reached MAD 8,079 million, down 2.6%. It represents an adjusted margin rate of 38.7%, up 0.5 pt.
Adjusted Cash Flow From Operations (CFFO)(6) in
Mobile
| Unit | 2019 | 2020 | Change |
Customer base(8) | (000) | 20,054 | 19,498 | -2.8% |
Prepaid | (000) | 17,752 | 17,181 | -3.2% |
Postpaid | (000) | 2,302 | 2,317 | +0.6% |
Of which Internet 3G/4G+(9) | (000) | 11,789 | 11,060 | -6.2% |
ARPU(10) | (MAD/month) | 58.3 | 54.3 | -6.9% |
At the end of 2020, the Mobile customer base(8) totaled 19.5 million customers, down 2.8% over one year.
Mobile revenues fell by 6.5% compared to the same period in 2019, to MAD 13,351 million impacted by the Covid-19 pandemic effects and the competitive context.
The 2020 combined ARPU(10) stood at MAD 54.3, down 6.9% over one year.
Fixed and Internet
| Unit | 2019 | 2020 | Change |
Fixed lines | (000) | 1,882 | 2,008 | +6.6% |
Broadband Access(11) | (000) | 1,573 | 1,738 | +10.4% |
The Fixed customer base maintained its good momentum and increased by 6.6% to 2 million lines. The Broadband customer base now has 1.7 million subscribers, up 10.4%.
The Fixed and Internet activities in
- International
Financial indicators
(IFRS in MAD million) | Q4-2019 | Q4-2020 | Change | Change on like-for-like basis(1) | 2019 | 2020 | Change | Change on like-for-like basis(1) |
Revenues | 4,102 | 4,367 | +6.4% | +5.8% | 16,095 | 16,883 | +4.9% | +1.4% |
Of which mobile services | 3,752 | 4,031 | +7.4% | +6.8% | 14,693 | 15,507 | +5.5% | +1.7% |
Adjusted EBITDA | 1,576 | 1,761 | +11.7% | +11.2% | 6,629 | 7,150 | +7.9% | +6.5% |
Margin (%) | 38.4% | 40.3% | +1.9 pt | +2.0 pt | 41.2% | 42.4% | +1.2 pt | +2.0 pt |
Adjusted EBITA | 635 | 861 | +35.7% | +35.7% | 3,246 | 3,520 | +8.4% | +9.6% |
Margin (%) | 15.5% | 19.7% | +4.3 pt | +4.4 pt | 20.2% | 20.8% | +0.7 pt | +1.6 pt |
CAPEX(2) | 895 | 832 | -7.0% | -6.3% | 3,766 | 1,982 | -47.4% | -50.0% |
Of which frequencies and licences | 124 | 1,316 | 135 | |||||
CAPEX/revenues (excluding frequencies and licences) | 21.9% | 16.2% | -5.7 pt | -5.6 pt | 15.2% | 10.9% | -4.3 pt | -3.8 pt |
Adjusted CFFO | 1,185 | 1,252 | +5.7% | +5.3% | 3,927 | 5,419 | +38.0% | +38.4% |
Net debt | 8,748 | 7,517 | -14.1% | -12.3% | 8,748 | 7,517 | -14.1% | -12.3% |
Net debt/EBITDA(3) | 1.3x | 1.0x | 1.3x | 1.0x |
The Group's international activities recorded revenues of MAD 16,883 million, up 1.4% on a like-for-like basis(1), explained by the recovery in post-lockdown activities and the growth in Data Mobile and Mobile Money services.
In 2020, the adjusted earnings from operations before depreciation and amortisation (EBITDA) amounted to MAD 7,150 million, up 7.9% (+6.5% on a like-for-like basis(1)). The adjusted EBITDA margin was 42.4%, up 1.2 pt (+2.0 pt on a like-for-like basis(1)). This performance comes from the improvement in the gross margin rate and rigorous cost management.
During the same period, the adjusted earnings from operations (EBITA)(5) improved by 8.4% (+9.6% on a like-for-like basis(1)) to MAD 3,520 million, thanks to the increase in EBITDA.
Adjusted Cash Flow From Operations (CFFO)(6) from international activities improved by +38.4% on a like-for-like basis(1) to MAD 5,419 million.
Operating indicators
Unit | 2019 | 2020 | Change | |
Mobile | ||||
Customer base(8) | (000) | 43,531 | 49,226 | |
| 2,470 | 2,641 | +6.9% | |
| 8,546 | 9,388 | +9.8% | |
| 1,621 | 1,632 | +0.6% | |
| 7,447 | 9,684 | +30.0% | |
Côte d’Ivoire | 8,975 | 10,050 | +12.0% | |
| 4,377 | 4,682 | +6.9% | |
| 3,030 | 3,380 | +11.6% | |
| 2,922 | 3,005 | +2.8% | |
| 168 | 189 | +12.0% | |
| 3,975 | 4,577 | +15.2% | |
Fixed-Line | ||||
Customer Base | (000) | 325 | 337 | |
| 56 | 57 | +0.9% | |
| 75 | 75 | -0.3% | |
| 22 | 25 | +13.9% | |
| 171 | 180 | +5.1% | |
Fixed-Line Broadband | ||||
Customer base(11) | (000) | 116 | 131 | |
| 10 | 18 | +82.7% | |
| 15 | 14 | -2.2% | |
| 18 | 22 | +19.9% | |
| 73 | 77 | +5.2% |
Notes:
(1) "Like-for-like" refers to the effects of consolidating Moov Africa Chad as if it had taken place on
(2) CAPEX corresponds to purchases of tangible and intangible assets recognized for the period.
(3) The ratio Net Debt/EBITDA excludes the impact of IFRS 16.
(4)
(6) EBITA corresponds to EBIT before the amortization of intangible assets acquired through business combinations, write-downs of goodwill and other intangible assets acquired through business combinations, and other income and expenses relating to financial investment transactions and transactions with shareholders (except when recognized directly in equity).
(6) CFFO includes net cash flow from operations before tax, as set out in the cash flow statement, as well as the dividends received from companies accounted for by the equity method and non-consolidated equity investments. CFFO also includes net capital expenditure, which corresponds to net uses of cash for acquisitions and disposals of tangible and intangible assets.
(7) Loans and other current and non-current liabilities less cash and cash equivalents, including cash held in escrow for bank loans.
(8) The active customer base consists of prepaid customers who have made or received a voice call (excluding ERPT or Call-Center calls) or received an SMS/MMS or used Data services (excluding ERPT services) during the past three months, and postpaid customers who have not terminated their agreements.
(9) The active customer base for 3G and 4G+ Mobile Internet includes holders of a postpaid subscription agreement (with or without a voice offer) and holders of a prepaid Internet subscription agreement who have made at least one top-up during the past three months or whose top-up is still valid and who have used the service during that period.
(10) ARPU is defined as revenues (generated by inbound and outbound calls and by data services) net of promotional offers, excluding roaming and equipment sales, divided by the average customer base for the period. In this instance, blended ARPU covers both the prepaid and postpaid segments.
(11) The broadband customer base includes ADSL access, FTTH and leased lines as well as the CDMA customer base in
Important notice:
Forward-looking statements. This press release contains forward-looking statements regarding Maroc Telecom’s financial position, income from operations, strategy, and outlook, as well as the impact of certain transactions. Although
* SPT is a company incorporated under Moroccan law and controlled by Etisalat.
Contacts | |
Investor relations relations.investisseurs@iam.ma | Press relations relations.presse@iam.ma |
Appendix 1: Transition from adjusted financial indicators to published financial indicators
Adjusted EBITDA, adjusted
2019 | 2020 | |||||
(in MAD million) | International | Group | International | Group | ||
Adjusted EBITDA | 12,294 | 6,629 | 18,922 | 11,950 | 7,150 | 19,100 |
Exceptional items: | ||||||
Dispute resolution | +420 | +420 | ||||
Published EBITDA | 12,294 | 6,629 | 18,922 | 12,370 | 7,150 | 19,520 |
Adjusted EBITA | 8,294 | 3,246 | 11,540 | 8,079 | 3,520 | 11,598 |
Exceptional items: Dispute resolution | ||||||
Restructuring costs | -9 | -9 | ||||
Dispute resolution | +420 | +420 | ||||
ANRT fine | -3,300 | -3,300 | ||||
Published EBITA | 4,994 | 3,237 | 8,231 | 8,499 | 3,520 | 12,018 |
Group share of adjusted Net Income | 6,029 | 6,001 | ||||
Exceptional items: Restructuring costs | ||||||
Restructuring costs | -4 | |||||
Dispute resolution | +469 | |||||
COVID contributions | -1,047 | |||||
ANRT fine | -3,300 | |||||
Published net income – Group share | 2,726 | 5,423 | ||||
Adjusted CFFO | 9,425 | 3,927 | 13,352 | 10,300 | 5,419 | 15,719 |
Exceptional items: Payment of licences | ||||||
Licences Payment | -102 | -1,835 | -1,937 | -143 | -143 | |
ANRT fine | -3,300 | -3,300 | ||||
Published CFFO | 9,324 | 2,091 | 11,415 | 7,000 | 5,277 | 12,276 |
2020 CFFO was marked by the disbursement of MAD 3,300 million linked to the full payment of the ANRT fine in
2019 CFFO included the payment of MAD 1,937 million corresponding to the licences obtained in
Appendix 2: Impact of the adoption of IFRS 16
As at
2020 | |||
(in MAD million) | International | Group | |
Adjusted EBITDA | +266 | +292 | +557 |
Adjusted EBITA | +33 | +29 | +62 |
Group share of adjusted Net Income | -17 | ||
Adjusted CFFO | +266 | +292 | +557 |
Net Debt | +838 | +801 | +1,639 |
Consolidated Statement of Financial Position
ASSETS (in MAD million) | 2019 | 2020 |
9,201 | 9,315 | |
Other intangible assets | 8,808 | 8,120 |
Property, plant and equipment | 31,037 | 28,319 |
Right-of-use asset | 1,630 | 1,592 |
Equity affiliates | 0 | 0 |
Non-current financial assets | 470 | 654 |
Deferred tax assets | 339 | 580 |
Non-current assets | 51,485 | 48,579 |
Inventories | 321 | 271 |
Trade and other receivables | 11,380 | 11,816 |
Short-term financial assets | 128 | 130 |
Cash and cash equivalents | 1,483 | 2,690 |
Assets available for sale | 54 | 54 |
Current assets | 13,365 | 14,960 |
TOTAL ASSETS | 64,851 | 63,540 |
LIABILITIES (in MAD million) | 2019 | 2020 |
Share capital | 5,275 | 5,275 |
Consolidated reserves | 4,069 | 2,023 |
Consolidated net income for the period | 2,726 | 5,423 |
Shareholders’ equity – Group share | 12,069 | 12,721 |
Non-controlling interests | 3,934 | 3,968 |
Shareholder’s equity | 16,003 | 16,688 |
Non-current provisions | 504 | 521 |
Borrowings and other long-term financial liabilities | 4,178 | 4,748 |
Deferred tax liabilities | 258 | 45 |
Other non-current liabilities | 0 | 0 |
Non-current liabilities | 4,939 | 5,314 |
Trade payables | 23,794 | 24,007 |
Current tax liabilities | 733 | 671 |
Current provisions | 4,634 | 1,247 |
Borrowings and other short-term financial liabilities | 14,748 | 15,612 |
Current liabilities | 43,908 | 41,538 |
TOTAL LIABILITIES | 64,851 | 63,540 |
Consolidated Income Statement
(In MAD million) | 2019 | 2020 | |
Revenues | 36,517 | 36,769 | |
Cost of purchases | -5,670 | -5,416 | |
Payroll costs | -3,098 | -3,005 | |
Taxes, royalties and dues | -3,183 | -3,344 | |
Other operating income and expenses | -5,610 | -8,746 | |
Net depreciation, amortization, and provisions | -10,724 | -4,240 | |
Earnings from operations | 8,231 | 12,018 | |
Other income and expenses from ordinary activities | -11 | -1,513 | |
Income from equity affiliates | 0 | 0 | |
Income from ordinary activities | 8,220 | 10,505 | |
Income from cash and cash equivalents | 2 | 17 | |
Gross cost of financial debt | -756 | -888 | |
Net cost of financial debt | -754 | -871 | |
Other financial income and expenses | -38 | 26 | |
Financial income | -792 | -844 | |
Income tax | -3,830 | -3,372 | |
Net Income | 3,598 | 6,289 | |
Translation difference resulting from foreign business activities | -226 | 134 | |
Other comprehensive income and expenses | 43 | -14 | |
Total comprehensive income for the period | 3,415 | 6,409 | |
Net Income | 3,598 | 6,289 | |
Earnings attributable to equity holders of the parents | 2,726 | 5,423 | |
Non-controlling interests | 873 | 866 | |
Earnings per share | 2019 | 2020 | |
Net income attributable to equity holders of the parent (in MAD million) | 2,726 | 5,423 | |
Number of stocks at | 879,095,340 | 879,095,340 | |
Net earnings per share (in MAD) | 3.10 | 6.17 | |
Diluted net earnings per share (in MAD) | 3.10 | 6.17 |
Consolidated Cash Flow Statement
(In MAD million) | 2019 | 2020 | |
Earnings from operations | 8,231 | 12,018 | |
Depreciation, amortization, and other restatements | 10,721 | 2,719 | |
Gross cash flow from operating activities | 18,952 | 14,738 | |
Other changes in net working capital requirement | 419 | 139 | |
Net cash flow from operating activities before tax | 19,372 | 14,877 | |
Income tax paid | -4,091 | -3,789 | |
Net cash flow from operating activities (a) | 15,281 | 11,088 | |
Purchases of property, plant and equipment and intangible assets | -7,949 | -4,141 | |
Purchases of consolidated investments after acquired cash | -1,096 | 0 | |
Increase in financial assets | -73 | -249 | |
Disposals of property, plant and equipment and intangible assets | 6 | 14 | |
Decrease in financial assets | 287 | 144 | |
Dividends received from non-consolidated equity investments | 6 | 14 | |
Net cash flow used in investing activities (b) | -8,819 | -4,219 | |
Capital increase | 0 | 0 | |
Dividends paid to shareholders | -6,003 | -4,870 | |
Dividends paid by subsidiaries to their non-controlling shareholders | -838 | -855 | |
Changes in equity capital | -6,841 | -5,725 | |
Proceeds from borrowings and increase in other long-term financial liabilities | 2,270 | 2,307 | |
Proceeds from borrowings and increase in other short-term financial liabilities | 2,860 | 1,167 | |
Payments on borrowings and decrease in other short-term financial liabilities | -4,548 | -2,687 | |
Net interest paid | -473 | -626 | |
Other cash items relating to financing activities | -13 | -35 | |
Change in borrowings and other financial liabilities | 96 | 125 | |
Net cash flow used in financing activities (d) | -6,744 | -5,600 | |
Translation adjustments and other non-cash items (g) | 65 | -62 | |
Total cash flows (a)+(b)+(d)+(g) | -217 | 1,207 | |
Cash and cash equivalents at beginning of period | 1,700 | 1,483 | |
Cash and cash equivalents at end of period | 1,483 | 2,690 |
Attachment
- Maroc Telecom_PR-FY2020_EN_VDEF
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