CONSOLIDATED RESULTS AT
A strong operational performance:
- Close to 68 million Group customers, up 11.1%;
- Growth in Group revenues (+0.9% on a like-for-like basis*), driven by the rise of Mobile Data in
Morocco and in the subsidiaries; - Increased profitability with EBITDA margin of 51.8% up 1.2 pt on a like-for-like basis*, promoted by ongoing cost optimization;
- Adjusted Consolidated Cash Flow From Operations up 29.0% on a like-for-like basis*.
Proposed dividend payment of MAD 4.9 billion, implying MAD 5.54 per share and representing a yield of 3.8%**.
- Stable revenues;
- Stable EBITDA;
- CAPEX of approximately 15% of revenues, excluding frequencies and licenses.
To mark the publication of this press release, Mr
" Excluding the impact of ANRT decision,
* Like-for-like basis refers to the notes of consolidating Tigo Chad, an unchanged MAD/Ouguiya/CFA franc exchange rate and
neutralization of the impact of IFRS 16
** Based on the price at
Group consolidated adjusted results*
(IFRS in MAD million) | Q4-2018 | Q4-2019 | Change | Change on a like-for-like basis(1) | 2018 | 2019 | Change | Change on a like-for-like basis(1) |
Revenues | 8,895 | 9,209 | +3.5% | +1.0% | 36,032 | 36,517 | +1.3% | +0.9% |
EBITDA | 4,381 | 4,525 | +3.3% | -1.2% | 17,856 | 18,922 | +6.0% | +3.4% |
Margin (%) | 49.3% | 49.1% | -0.1 pt | -1.1 pt | 49.6% | 51.8% | +2.3 pt | +1.2 pt |
Adjusted EBITA | 2,589 | 2,552 | -1.4% | -2.2% | 11,052 | 11,540 | +4.4% | +4.3% |
Margin (%) | 29.1% | 27.7% | -1.4 pt | -0.9 pt | 30.7% | 31.6% | +0.9 pt | +1.0 pt |
Group Share of adjusted Net Income | 1,393 | 1,382 | -0.8% | +0.1% | 6,005 | 6,029 | +0.4% | +1.0% |
Margin (%) | 15.7% | 15.0% | -0.7 pt | -0.1 pt | 16.7% | 16.5% | -0.2 pt | +0.0 pt |
CAPEX(2) | 1,991 | 2,184 | +9.7% | +10.3% | 6,643 | 6,788 | +2.2% | +3.5% |
Of which frequencies and licenses | 245 | 102 | 719 | 1,418 | ||||
CAPEX/Rev (excluding frequencies and licenses) | 19.7% | 22.7% | +3.0 pt | +3.0 pt | 16.4% | 14.7% | -1.7 pt | -1.7 pt |
Adjusted CFFO | 2,537 | 4,185 | +64.9% | +62.9% | 9,982 | 13,352 | +33.8% | +29.0% |
Net Debt | 13,872 | 17,350 | +25.1% | +11.2% | 13,872 | 17,350 | +25.1% | +11.2% |
Net debt / EBITDA(3) | 0.8x | 0.9x | 0.8x | 0.9x |
*Details of the financial indicator adjustments are provided in Appendix 1.
► Customer base
The Group customer base reaches 67.5 million customers, up 11.1%. This growth was due both to the Mobile and Fixed line customer bases in
► Revenues
In 2019,
In the fourth quarter alone, the Group's revenues were up 3.5% (+1.0% on a like-for-like basis(1)), thanks to the sustained growth of Mobile Data in
► Earnings from operations before depreciation and amortization
Thanks to a robust management of costs,
► Earnings from operations
At the end of 2019,
► Group share of net income
The Group share of adjusted Net Income was up 1.0% on a like-for-like basis(1).
► Investments
The capital expenditures(2) reached MAD 6,788 million up 2.2% year-on-year and representing 14.7% of revenues (excluding frequencies and licences). This level of capital expenditures remains in line with the stated objective for the year.
► Cash Flow
Adjusted Cash Flow From Operations (CFFO)(6) was up 33.8% (+29.0% on a like-for-like basis(1)), to MAD 13,352 million due to the increased EBITDA and effective management of working capital requirements (WCR).
At
► ANRT decision
The decision taken by the
This binding decision concerns a financial penalty of MAD 3.3 billion and injunctions relating to the technical and pricing aspects of the local loop unbundling.
In view of the recent, complex and exceptional nature of the decision received,
As required by law,
In this context,
► Appointments to the Supervisory Board
At its meeting on
► Dividend
At the Shareholders' Meeting of
► Outlook for
On the basis of recent changes in the market and assuming that no new major exceptional events impact the Group's business,
- Stable revenues;
- Stable EBITDA;
- CAPEX of approximately 15% of revenues, excluding frequencies and licenses.
Review of the Group’s activities
Details of the financial indicator adjustments for "Morocco" and "International" are provided in Appendix 1.
·Morocco
(IFRS in MAD million) | Q4-2018 | Q4-2019 | Change | Change on a like-for-like basis(1) | 2018 | 2019 | Change | Change on a like-for-like basis(1) |
Revenues | 5,319 | 5,378 | +1.1% | 21,414 | 21,690 | +1.3% | ||
Mobile | 3,465 | 3,557 | +2.7% | 13,966 | 14,276 | +2.2% | ||
Services | 3,401 | 3,523 | +3.6% | 13,731 | 14,046 | +2.3% | ||
Equipment | 64 | 35 | -45.5% | 235 | 230 | -2.0% | ||
Fixed-Line | 2,300 | 2,306 | +0.2% | 9,239 | 9,261 | +0.2% | ||
O/w Data Fixed line* | 755 | 886 | +17.3% | 2,935 | 3,186 | +8.5% | ||
Eliminations and other income | -446 | -485 | -1,790 | -1,846 | ||||
EBITDA | 2,901 | 2,948 | +1.6% | -0.6% | 11,460 | 12,294 | +7.3% | +5.3% |
Margin (%) | 54.5% | 54.8% | +0.3 pt | -0.9 pt | 53.5% | 56.7% | +3.2 pt | +2.1 pt |
Adjusted EBITA | 1,876 | 1,917 | +2.2% | +2.2% | 7,620 | 8,294 | +8.8% | +8.5% |
Margin (%) | 35.3% | 35.6% | +0.4 pt | +0.4 pt | 35.6% | 38.2% | +2.7 pt | +2.5 pt |
CAPEX(2) | 959 | 1,289 | +34.5% | 2,749 | 3,022 | +9.9% | ||
Of which frequencies and licenses | 102 | 102 | ||||||
CAPEX/Rev (excluding frequencies and licenses) | 18.0% | 22.1% | +4.1 pt | 12.8% | 13.5% | +0.6 pt | ||
Adjusted CFFO | 2,001 | 3,000 | +49.9% | +46.8% | 7,498 | 9,425 | +25.7% | +22.7% |
Net Debt | 10,422 | 11,101 | +6.5% | -2.1% | 10,422 | 11,101 | +6.5% | -2.1% |
Net debt / EBITDA(3) | 0.9x | 0.9x | 0.9x | 0.8x |
* Fixed-Line Data includes Internet, ADSL TV and corporate Data services
At
At the end of 2019, earnings from operations before depreciation and amortization (EBITDA) amounted to MAD 12,294 million, up 7.3% (+5.3% on a like-for-like basis(1)), thanks to the improvement of gross margin and the reduction in operational costs. The EBITDA margin was thus unchanged at the high rate of 56.7%, up 2.1 pt on a like-for-like basis(1).
The adjusted earnings from operations (EBITA)(5) reached MAD 8,294 million, up 8.8% (+8.5% on a like-for-like basis(1)) thanks to the increase in EBITDA. The adjusted EBITA margin was 38.2%, up 2.5 pt on a like-for-like basis(1).
Adjusted Cash Fows From Operations (CFFO)(6) in
Mobile
| Unit | 2018 | 2019 | Change |
Customer base(8) | (000) | 19,062 | 20,054 | +5.2% |
Prepaid | (000) | 17,068 | 17,752 | +4.0% |
Postpaid | (000) | 1,993 | 2,302 | +15.5% |
Of which 3G/4G+ Internet(9) | (000) | 10,828 | 11,789 | +8.9% |
ARPU(10) | (MAD/month) | 58.6 | 58.3 | -0.5% |
By the end of 2019, the Mobile customer base(8) totaled 20.1 million customers, up 5.2% year-on-year, thanks to combined increases of postpaid and prepaid by 15.5% and 4.0% respectively.
Revenues from Mobile amounted to MAD 14,276 million up 2.2%, driven by the growth in Mobile Data, the traffic of which continues to increase significantly (+36% in 2019).
In 2019, blended ARPU(10) amounted to MAD 58.3, down slightly by 0.5% year-on-year.
Fixed-Line and Internet
| Unit | 2018 | 2019 | Change |
Fixed-lines | (000) | 1,818 | 1,882 | +3.5% |
Broadband access(11) | (000) | 1,484 | 1,573 | +6.1% |
At the end of
The Fixed-Line and Internet activities in
- International
Financial indicators
(IFRS in MAD million) | Q4-2018 | Q4-2019 | Change | Change on a like-for-like basis(1) | 2018 | 2019 | Change | Change on a like-for-like basis(1) |
Revenues | 3,891 | 4,102 | +5.4% | -0.2% | 16,041 | 16,095 | +0.3% | -0.6% |
Of which Mobile Services | 3,547 | 3,752 | +5.8% | -0.5% | 14,647 | 14,693 | +0.3% | -0.8% |
EBITDA | 1,481 | 1,576 | +6.5% | -2.3% | 6,397 | 6,629 | +3.6% | +0.0% |
Margin (%) | 38.0% | 38.4% | +0.4 pt | -0.8 pt | 39.9% | 41.2% | +1.3 pt | +0.2 pt |
Adjusted EBITA | 713 | 635 | -10.9% | -13.5% | 3,431 | 3,246 | -5.4% | -5.0% |
Margin (%) | 18.3% | 15.5% | -2.8 pt | -2.3 pt | 21.4% | 20.2% | -1.2 pt | -0.9 pt |
CAPEX(2) | 1,032 | 895 | -13.3% | -12.1% | 3,894 | 3,766 | -3.3% | -1.0% |
Of which frequencies and licenses | 245 | 719 | 1,316 | |||||
CAPEX/Rev (excluding frequencies and licenses) | 20.3% | 21.9% | +1.6 pt | +3.1 pt | 19.8% | 15.2% | -4.6 pt | -3.9 pt |
Adjusted CFFO | 536 | 1,185 | ns | ns | 2,484 | 3,927 | +58.1% | +47.3% |
Net Debt | 6,514 | 8,748 | +34.3% | +18.1% | 6,514 | 8,748 | +34.3% | +18.1% |
Net debt / EBITDA(3) | 1.1x | 1.3x | 1.0x | 1.3x |
In a difficult competitive and regulatory environment, the Group's international activities generated revenues of MAD 16,095 million, practically unchanged compared with the same period in 2018 (+0.3% on a reported basis and -0.6% on a like-for-like basis(1)). This change is mainly attributable to the reduction in Mobile termination rates and in international incoming revenues, partially offset by the increase in Mobile Data and Mobile Money services. Excluding the impact of the reduction in call termination rates, revenues were up 1.2% on a like-for-like basis(1).
In 2019, earnings from operations before depreciation and amortization (EBITDA) amounted to MAD 6,629 million, unchanged on a like-for-like basis(1). The EBITDA margin rose 0.2 points on a like-for-like basis(1) to 41.2%.This performance was due to an improved gross margin related to the reduction in call termination, despite the fiscal and sectoral growing pressure in certain countries. Excluding the impact of fiscal and sectoral taxes, the EBITDA margin would have been improved by 1.7 pt.
Over the same period, adjusted earnings from operations (EBITA)(5) were down 5.4% (- 5.0% on a like-for-like basis(1)) to MAD 3,246 million, owing to increased amortization and depreciation expenses.
Adjusted cash flows from operations (CFFO)(6) from International activities were up by 58.1% (+47.3% on a like-for-like basis(1)) to MAD 3,927 million. This performance is explained by optimal management of working capital requirements.
Operating indicators
Unit | 2018 | 2019 | Change | |
Mobile | ||||
Customer base(8) | (000) | 37,926 | 43,531 | |
| 2,397 | 2,470 | +3.1% | |
| 7,634 | 8,546 | +11.9% | |
| 1,620 | 1,621 | +0.1% | |
| 7,320 | 7,447 | +1.7% | |
Côte d’Ivoire | 8,646 | 8,975 | +3.8% | |
| 4,279 | 4,377 | +2.3% | |
| 3,405 | 3,030 | -11.0% | |
| 2,485 | 2,922 | +17.6% | |
| 140 | 168 | +19.9% | |
| - | 3,975 | - | |
Fixed-Line | ||||
Customer Base | (000) | 318 | 324 | |
| 55 | 56 | +1.9% | |
| 77 | 75 | -1.9% | |
| 22 | 22 | +2.1% | |
| 164 | 171 | +4.3% | |
Fixed-Line Broadband | ||||
Customer base(11) | (000) | 114 | 116 | |
| 13 | 10 | -21.1% | |
| 15 | 15 | -2.6% | |
| 17 | 18 | +6.5% | |
| 69 | 73 | +5.6% |
Notes:
(1) "Like-for-like" refers to the effects of consolidating Tigo 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)
(5) 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: Relationship between adjusted financial indicators and published financial indicators
2018 | 2019 | |||||
(in MAD million) | International | Group | International | Group | ||
Adjusted EBITA | 7,620 | 3,431 | 11,052 | 8,294 | 3,246 | 11,540 |
Non-recurring items: Restructuring costs | -2 | +2 | -9 | -9 | ||
ANRT decision | -3,300 | -3,300 | ||||
Published EBITA | 7,618 | 3,434 | 11,052 | 4,994 | 3,237 | 8,231 |
Adjusted Net Income – Group share | 6,005 | 6,029 | ||||
Non-recurring items: Restructuring costs | +5 | -4 | ||||
ANRT decision | -3,300 | |||||
Published Net Income – Group share | 6,010 | 2,726 | ||||
Adjusted CFFO | 7,498 | 2,484 | 9,982 | 9,425 | 3,927 | 13,352 |
Non-recurring items: Restructuring costs | -2 | -9 | -11 | |||
License payments | -524 | -524 | -102 | -1,835 | -1,937 | |
Published CFFO | 7,496 | 1,951 | 9,447 | 9,324 | 2,091 | 11,415 |
2019 was marked by the cash disbursement of MAD 1,937 million for the payment of the licenses obtained in
2018 included the payment of MAD 524 million related to the licenses obtained in Côte d’Ivoire,
Appendix 2: Impact of the adoption of IFRS 16
IFRS 16 is applied with effect from
As at
2019 | |||
(in MAD million) | International | Group | |
EBITDA | +228 | +234 | +462 |
Adjusted EBITA | +24 | +27 | +51 |
Group share of adjusted Net Income | -16 | ||
Adjusted CFFO | +228 | +234 | +462 |
Net Debt | +902 | +750 | +1,652 |
Consolidated Statement of Financial Position
ASSETS (in MAD million) | 2018 | 2019 |
8,548 | 9,201 | |
Other intangible assets | 7,681 | 8,808 |
Property, plant and equipment | 31,301 | 31,037 |
Right-of-use asset | 1,630 | |
Equity affiliates | 0 | 0 |
Non-current financial assets | 299 | 470 |
Deferred tax assets | 224 | 339 |
Non-current assets | 48,053 | 51,485 |
Inventories | 348 | 321 |
Trade and other receivables | 11,839 | 11,380 |
Short-term financial assets | 138 | 128 |
Cash and cash equivalents | 1,700 | 1,483 |
Assets available for sale | 54 | 54 |
Current assets | 14,078 | 13,365 |
TOTAL ASSETS | 62,131 | 64,851 |
LIABILITIES (in MAD million) | 2018 | 2019 |
Share capital | 5,275 | 5,275 |
Consolidated reserves | 4,383 | 4,069 |
Consolidated net income for the period | 6,010 | 2,726 |
Shareholders’ equity – Group share | 15,668 | 12,069 |
Non-controlling interests | 3,822 | 3,934 |
Shareholder’s equity | 19,490 | 16,003 |
Non-current provisions | 464 | 504 |
Borrowings and other long-term financial liabilities | 3,475 | 4,178 |
Deferred tax liabilities | 246 | 258 |
Other non-current liabilities | 0 | 0 |
Non-current liabilities | 4,185 | 4,939 |
Trade payables | 24,095 | 23,794 |
Current tax liabilities | 906 | 733 |
Current provisions | 1,325 | 4,634 |
Borrowings and other short-term financial liabilities | 12,129 | 14,748 |
Current liabilities | 38,456 | 43,908 |
TOTAL LIABILITIES | 62,131 | 64,851 |
Consolidated income statement
(In MAD million) | 2018 | 2019 | |
Revenues | 36,032 | 36,517 | |
Cost of purchases | -6,011 | -5,670 | |
Payroll costs | -2,891 | -3,098 | |
Taxes, royalties and dues | -2,818 | -3,183 | |
Other operating income and expenses | -5,923 | -5,610 | |
Net depreciation, amortization, and provisions | -7,337 | -10,724 | |
Earnings from operations | 11,052 | 8,231 | |
Other income and expenses from ordinary activities | -11 | -11 | |
Income from equity affiliates | 0 | 0 | |
Income from ordinary activities | 11,040 | 8,220 | |
Income from cash and cash equivalents | 3 | 2 | |
Gross cost of financial debt | -527 | -756 | |
Net cost of financial debt | -524 | -754 | |
Other financial income and expenses | 99 | -38 | |
Financial income | -425 | -792 | |
Income tax | -3,677 | -3,830 | |
Net Income | 6,938 | 3,598 | |
Translation difference resulting from foreign business activities | -239 | -226 | |
Other comprehensive income and expenses | -5 | 43 | |
Total comprehensive income for the period | 6,693 | 3,415 | |
Net Income | 6,938 | 3,598 | |
Earnings attributable to equity holders of the parents | 6,010 | 2,726 | |
Non-controlling interests | 928 | 873 | |
Earnings per share | 2019 | 2019 | |
Net income attributable to equity holders of the parent (in MAD million) | 6,010 | 2,726 | |
Number of stocks at | 879,095,340 | 879,095,340 | |
Net earnings per share (in MAD) | 6.84 | 3.10 | |
Diluted net earnings per share (in MAD) | 6.84 | 3.10 |
Consolidated cash flow statement
(In MAD million) | 2018 | 2019 | |
Earnings from operations | 11,052 | 8,231 | |
Depreciation, amortization, and other restatements | 7,318 | 10,721 | |
Gross cash flow from operating activities | 18,370 | 18,952 | |
Other changes in net working capital requirement | -883 | 419 | |
Net cash flow from operating activities before tax | 17,487 | 19,372 | |
Income tax paid | -2,967 | -4,091 | |
Net cash flow from operating activities (a) | 14,520 | 15,281 | |
Purchases of property, plant and equipment and intangible assets | -8,075 | -7,949 | |
Purchases of consolidated investments after acquired cash | -469 | -1,096 | |
Increase in financial assets | -194 | -73 | |
Disposals of property, plant and equipment and intangible assets | 31 | 6 | |
Decrease in financial assets | 335 | 287 | |
Dividends received from non-consolidated equity investments | 2 | 6 | |
Net cash flow used in investing activities (b) | -8,369 | -8,819 | |
Capital increase | 0 | 0 | |
Dividends paid to shareholders | -5,732 | -6,003 | |
Dividends paid by subsidiaries to their non-controlling shareholders | -798 | -838 | |
Changes in equity capital | -6,529 | -6,841 | |
Proceeds from borrowings and increase in other long-term financial liabilities | 1,347 | 2,270 | |
Proceeds from borrowings and increase in other short-term financial liabilities | 1,933 | 2,860 | |
Payments on borrowings and decrease in other short-term financial liabilities | -2,682 | -4,548 | |
Net interest paid | -575 | -473 | |
Other cash items relating to financing activities | 6 | -13 | |
Change in borrowings and other financial liabilities | 29 | 96 | |
Net cash flow used in financing activities (d) | -6,501 | -6,744 | |
Translation adjustments and other non-cash items (g) | 40 | 65 | |
Total cash flows (a)+(b)+(d)+(g) | -310 | -217 | |
Cash and cash equivalents at beginning of period | 2,010 | 1,700 | |
Cash and cash equivalents at end of period | 1,700 | 1,483 |
Attachment
- Maroc Telecom_PR-2019 Results
© OMX, source