CONSOLIDATED RESULTS FOR Q1 2020
Good operational performance:
- Almost 69 million customers in the Group, up 11.3%;
- +4.0% growth in consolidated revenue (+2.0% on a like-for-like basis*) thanks to the strong interest for Mobile Data in
Morocco and the subsidiaries; - EBITDA improved by 2.2% on a like-for-like basis*, enabling margins to be kept at a high level of 51.5% (+0.1 pt on a like-for-like basis*);
Adjusted Net Income Group share increased by 1.4% on a like-for-like basis*.
To mark the publication of the quarterly results, Mr.
“The results of this first quarter are driven by the positive momentum of customer base and Data revenue across the countries in which the Group operates. In the current context of health crisis and lockdown, the Group remains fully mobilized for the protection of its employees and its customers. The Group has managed to ensure the availability and continuity of its services under exceptional conditions imposed by the pandemic. It thus quickly mobilized technological resources to increase the capacities of the networks in order to face the increase in Data usage."
*Like-for-like basis refers to the consolidation of Tigo Chad, unchanged MAD/Ouguiya/CFA Franc exchange rates and the neutralization of the application of IFRS16 impacts
Group’s adjusted* consolidated results
IFRS in MAD million | Q1-2019 | Q1-2020 | Change | Change on a like-for-like basis(1) |
Revenue | 8,948 | 9,309 | +4.0% | +2.0% |
EBITDA | 4,649 | 4,794 | +3.1% | +2.2% |
Margin (%) | 52.0% | 51.5% | -0.5 pt | +0.1 pt |
Adjusted EBITA | 2,904 | 2,913 | +0.3% | +0.4% |
Margin (%) | 32.5% | 31.3% | -1.2 pt | -0.5 pt |
Group share of adjusted Net Income | 1,583 | 1,597 | +0.9% | +1.4% |
Margin (%) | 17.7% | 17.2% | -0.5 pt | -0.1 pt |
CAPEX(2) | 2,194 | 527 | -76.0% | -75.7% |
Of which licenses and frequencies | 1,334 | |||
CAPEX / revenue (excluding licenses and frequencies) | 9.6% | 5.7% | -3.9 pt | -4.0 pt |
Adjusted CFFO | 2,773 | 2,893 | +4.3% | +0.6% |
Net Debt | 15,512 | 19,463 | +25.5% | +23.6% |
Net Debt/EBITDA(3) | 0.8x | 1.0x |
*The adjustments to financial indicators are presented in Note 1
► Customer base
The Group had almost 69 million customers at end
► Revenue
At end
► Earnings from operations before depreciation and amortization
For Q1 2020, earnings from operations before depreciation and amortization (EBIDTA) for
► Earnings from operations
Adjusted earnings from operations (EBITA)(5) for
► Group share of Net Income
At end
► Cash Flow
Adjusted cash flows from operations (CFFO)(6) amounted to
► COVID-19 pandemic
The first quarter of 2020 is marked by an unprecedented health crisis on an international scale due to the COVID-19 pandemic. While adapting working and safety conditions for its employees,
As part of the general mobilization and along with the major Groups in the country,
In the subsidiaries, service continuity and protection measures have been implemented in collaboration with the respective authorities and in accordance with the measures adopted in each country.
The Group has deployed all its efforts in order to minimize the impact of this crisis on its activities.
► Highlights
The decision by the
This binding decision concerns a financial penalty of
In addition,
Overview of the Group’s activities
The adjustments to “Morocco” and “International” financial indicators are presented in Appendix 1.
·Morocco
IFRS in MAD million | Q1-2019 | Q1-2020 | Change | Change on a like-for-like basis(1) |
Revenue | 5,382 | 5,400 | +0.3% | |
Mobile | 3,472 | 3,545 | +2.1% | |
Services | 3,338 | 3,432 | +2.8% | |
Equipment | 134 | 113 | -15.9% | |
Fixed-line | 2,356 | 2,319 | -1.6% | |
Of which Fixed-line Data* | 773 | 829 | +7.3% | |
Elimination and other revenue | -446 | -463 | ||
EBITDA | 3,028 | 2,972 | -1.8% | -2.5% |
Margin (%) | 56.3% | 55.0% | -1.2 pt | -1.6 pt |
Adjusted EBITA | 2,055 | 1,991 | -3.1% | -3.3% |
Margin (%) | 38.2% | 36.9% | -1.3 pt | -1.4 pt |
CAPEX(2) | 351 | 283 | -19.5% | |
Of which licenses and frequencies | ||||
CAPEX / revenue (excluding licenses and frequencies) | 6.5% | 5.2% | -1.3 pt | |
Adjusted CFFO | 1,773 | 1,620 | -8.6% | -9.9% |
Net Debt | 10,346 | 12,896 | +24.6% | +26.1% |
Net Debt/EBITDA(3) | 0.8x | 1.0x |
*Fixed-line Data includes Internet, TV over ADSL and Corporate Data services
Revenue growth for activities in
Earnings from operations before depreciation and amortization (EBITDA) reached 2,972 million dirhams, down by 1.8% (-2.5% on a like-for-like basis(1)). The EBITDA margin remained at the high level of 55.0%, down 1.2 points (-1.6 pt on a comparable basis(1)).
Adjusted earnings from operations (EBITA)(5) amounted to
As at
Mobile
| Unit | Q1-2019 | Q1-2020 | Change |
Base(7) | (000) | 19,298 | 19,972 | +3.5% |
Prepaid | (000) | 17,202 | 17,624 | +2.5% |
Postpaid | (000) | 2,096 | 2,348 | +12.0% |
Of which 3G/4G+ Internet(8) | (000) | 10,961 | 11,888 | +8.5% |
ARPU(9) | (MAD/month) | 56.8 | 56.1 | -1.2% |
As at
Mobile revenue grew by 2.1% compared to the same period in 2019 to
Combined ARPU(9) for the first three months of 2020 was down by 1.2% compared to the same period in 2019, at
Fixed-line and internet
| Unit | Q1-2019 | Q1-2020 | Change |
Fixed Lines | (000) | 1,841 | 1,899 | +3.2% |
Broadband Access(10) | (000) | 1,511 | 1,602 | +6.0% |
The Fixed-line base continued to grow (+3.2% over one year) to 1.9 million lines at end
Fixed-line and Internet activities in
·International
Financial indicators
IFRS in MAD million | Q1-2019 | Q1-2020 | Change | Change on a like-for-like basis(1) |
Revenue | 3,937 | 4,207 | +6.9% | +2.1% |
Of which Mobile Services | 3,581 | 3,859 | +7.8% | +2.3% |
EBITDA | 1,621 | 1,823 | +12.4% | +10.6% |
Margin (%) | 41.2% | 43.3% | +2.1 pt | +3.2 pt |
Adjusted EBITA | 849 | 921 | +8.5% | +9.3% |
Margin (%) | 21.6% | 21.9% | +0.3 pt | +1.4 pt |
CAPEX(2) | 1,842 | 244 | -86.7% | -86.4% |
Of which licenses and frequencies | 1,334 | - | ||
CAPEX / revenue (excluding licenses and frequencies) | 12.9% | 5.8% | -7.1 pt | -6.3 pt |
Adjusted CFFO | 999 | 1,273 | +27.3% | +17.9% |
Net Debt | 8,039 | 8,250 | +2.6% | -3.0% |
Net Debt/EBITDA(3) | 1.2x | 1.1x |
During Q1 2020, the Group’s International activities recorded revenue of
Over the same period, earnings from operations before depreciation and amortization (EBITDA) improved by 12.4% (+10.6% on a like-for-like basis(1)) to
Adjusted earnings from operations (EBITA)(5) for Q1 2020 improved by 8.5% (+9.3% on a like-for-like basis(1)) to
Adjusted Cash Flows From Operations (CFFO)(6) for International activities amounted to
Operating indicators
| Unit | Q1-2019 | Q1-2020 | Change |
Mobile | ||||
Base(7) | (000) | 38,466 | 44 583 | |
Mauritania | 2,400 | 2 485 | +3.6% | |
Burkina Faso | 7,777 | 8 779 | +12.9% | |
Gabon | 1,559 | 1 573 | +0.9% | |
Mali | 7,270 | 7 693 | +5.8% | |
Côte d’Ivoire | 8,734 | 9 198 | +5.3% | |
Benin | 4,351 | 4 300 | -1.2% | |
Togo | 3,547 | 3 091 | -12.9% | |
Niger | 2,679 | 3 083 | +15.1% | |
Central African Republic | 149 | 178 | +19.0% | |
Chad | - | 4 203 | - | |
Fixed-line | ||||
Base | (000) | 320 | 327 | |
| 56 | 57 | +1.2% | |
| 77 | 75 | -2.7% | |
| 22 | 23 | +4.6% | |
| 166 | 173 | +4.5% | |
Broadband | ||||
Base(10) | (000) | 113 | 123 | |
| 11 | 16 | +41.3% | |
| 15 | 14 | -5.5% | |
| 17 | 18 | +7.9% | |
| 70 | 74 | +5.6% |
Notes:
(1) The like-for-like basis illustrates the effects of the consolidation of Tigo Tchad as if had effectively occurred on
(2) CAPEX corresponds to the acquisitions of non-current intangible assets and property, plant and equipment recognized during the period.
(3) The net debt / EBITDA ratio excludes the impact of IFRS 16.
(4)
(5) EBITA corresponds to operating income before the amortization of intangible assets related to business combinations, goodwill impairment and other intangible assets related to business combinations and other income and expenses related to financial investment operations and transactions with shareholders (unless they are directly recognized in shareholders’ equity).
(6) CFFO includes the net cash flows from operations before tax, as presented in the cash flow statement, as well as dividends received from companies accounted for using the equity method and non-consolidated investments. It also includes net industrial investments, which correspond to net cash outflows related to acquisitions and disposals of non-current intangible assets and property, plant and equipment.
(7) The asset base comprises prepaid customers, that have made or received a voice call (excluding calls from the concerned ERPT or its Customer Relations Centers) or sent an SMS/MMS or used Data services (excluding technical data exchanges with the concerned ERPT network) over the last three months and postpaid customers that have not canceled.
(8) The Mobile Internet 3G and 4G+ asset base includes holders of a postpaid subscription contract (whether or not combined with a voice offering) and holders of a prepaid subscription to the Internet service that have made at least one recharge over the last three months or for whom the credit is valid and who have used the service during the period.
(9) The ARPU is defined as revenue (generated by entering or exiting calls and by data services) less promotional offers, excluding roaming and equipment sales, divided by the average base over the period. It is the combined ARPU for the prepaid and postpaid segments.
(10) The broadband base includes ADSL, FTTH access and rented connections and also includes the CDMA base in
Important warning:
Forward-looking statements. This press release contains forward-looking statements and elements relating to the financial position, operating results, strategy and outlook for
*SPT is a company incorporated in
Contacts | |
Investor relations relations.investisseurs@iam.ma | Press relations relations.presse@iam.ma |
Appendix 1: Change from adjusted financial indicators to reported financial indicators
Q1-2019 | Q1-2020 | |||||
(in MAD millions) | International | Group | International | Group | ||
Adjusted EBITA | 2 055 | 849 | 2 904 | 1 991 | 921 | 2 913 |
Reported EBITA | 2 055 | 849 | 2 904 | 1 991 | 921 | 2 913 |
Group share of Adjusted Net Income | 1 583 | 1 597 | ||||
Group share of Reported Net Income | 1 583 | 1 597 | ||||
Adjusted CFFO | 1 773 | 999 | 2 773 | 1 620 | 1 273 | 2 893 |
Exceptional items: | ||||||
Payment of licenses | -1 625 | -1 625 | ||||
ANRT penalty | -3 300 | -3 300 | ||||
Reported CFFO | 1 773 | -626 | 1 148 | -1 680 | 1 273 | -407 |
Q1 2019 includes the payment of
Appendix 2: Impact of the application of IFRS 16
At end
Q1-2020 | |||
(in MAD millions) | International | Group | |
EBITDA | +69 | +63 | +132 |
Adjusted EBITA | +13 | +9 | +22 |
Group share of adjusted Net Income | +1 | ||
Adjusted CFFO | +69 | +63 | +132 |
Net Debt | +891 | +696 | +1,587 |
Attachment
- Maroc Telecom_PR-Q1 2020 Results_EN
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