H1 2020 CONSOLIDATED RESULTS
Resilience of the Group's business amid an unprecedented health crisis:
- 9% growth in the Group's overall customer base, which reached 68.4 million customers;
- Stable consolidated revenues thanks to International activities and Mobile and Fixed line Data in
Morocco ; - Maintain of good profitability through optimized cost management: Consolidated EBITDA margin of 52.4%, up 0.7 pt on a like-for-like basis;
- Rapid adaptation of network resources and capacity to respond to market developments facing the Covid-19 crisis.
Revision of 2020 outlook on a like-for-like basis and at constant exchange rates:
- Slight decrease in revenues;
- Slight decrease in EBITDA;
- CAPEX of approximately 10% of revenues, excluding frequencies and licenses.
Upon the publication of this press release, Mr.
«In an unprecedented context of global health crisis, the
The Group's network capacities and infrastructures, which were very busy during the lockdown period, fully responded to the increase in demand and the expansion of new usages, without any impact on the quality of service. The relevance of the Group's strategy, focused on investment for the strengthening of networks, infrastructures and digitalization, is thus reinforced.
This health context prompted the Group to adopt a broad cost optimization plan, which made it possible to maintain good performance over the half-year despite the first effects of the pandemic.»
Group consolidated adjusted results*
(IFRS in MAD million) | Q2-2019 | Q2-2020 | Change | Change on a like-for-like basis (1) | 6M-2019 | 6M-2020 | Change | Change on a like-for-like basis (1) | ||||||
Revenues | 8,895 | 9,014 | +1.3% | -2.1% | 17,844 | 18,323 | +2.7% | +0.0% | ||||||
EBITDA | 4,762 | 4,809 | +1.0% | +0.2% | 9,409 | 9,603 | +2.1% | +1.4% | ||||||
Margin (%) | 53.5% | 53.3% | -0.2 pt | +1.2 pt | 52.7% | 52.4% | -0.3 pt | +0.7 pt | ||||||
Adjusted EBITA | 2,960 | 2,922 | -1.3% | -0.2% | 5,862 | 5,836 | -0.5% | +0.2% | ||||||
Margin (%) | 33.3% | 32.4% | -0.9 pt | +0.6 pt | 32.9% | 31.8% | -1.0 pt | +0.1 pt | ||||||
Group share of adjusted Net Income | 1,441 | 1,410 | -2.2% | +1.5% | 3,022 | 3,006 | -0.5% | +1.5% | ||||||
Margin (%) | 16.2% | 15.6% | -0.6 pt | +0.5 pt | 16.9% | 16.4% | -0.5 pt | +0.3 pt | ||||||
CAPEX(2) | 1,034 | 659 | -36.3% | -47.0% | 3,227 | 1,186 | -63.3% | -65.4% | ||||||
Of which frequencies & licenses | 1,327 | |||||||||||||
CAPEX/revenues (excl.frequencies & licenses) | 11.7% | 7.3% | -4.4 pt | -6.7 pt | 10.7% | 6.5% | -4.2 pt | -5.4 pt | ||||||
Adjusted CFFO | 2,936 | 4,206 | +43.2% | +43.4% | 5,728 | 7,099 | +23.9% | +22.2% | ||||||
Net Debt | 21,034 | 18,659 | -11.3% | -9.0% | 21,034 | 18,659 | -11.3% | -9.0% | ||||||
Net Debt/EBITDA(3) | 1,1x | 0.9x | 1.1x | 0.9x |
*Details of the financial indicator adjustments are provided in Appendix 1.
► Customer base
The Group's customer bases continue to grow (up 9.1% year-on-year), reaching 68.4 million at the end of
► Revenue
At the end of
► Earnings from operations before depreciation and amortization
► Earnings from operations
At the end of the first six months of 2020, the adjusted EBITA(5) of
► Group share of Net Income
The Group share of adjusted Net Income was
► Investments
Capital expenditures(2) excluding frequencies and licenses were down 37.6% year-on-year (down 43.6% on a like-for-like basis(1)), due to the adjustment of investments to the current environment.
► Cash Flow
Adjusted cash flows from operations (CFFO)(6) was
At the end of
► COVID-19 pandemic
The management of the health crisis by the
- The strengthening of hygiene, distancing measures and the use of teleworking (collaborative work tools with remote access are made available to employees);
- The promotion of digitization tools to encourage customers and partners to interact with the company via the various online services (orders, payment & service modification, bid submission, etc.);
- Control of the supply chain (commercial and technical) while meeting replenishment and customs clearance deadlines;
- Good management of business continuity, networks and information systems.
However, the impact of the Covid-19 pandemic on the growth forecasts for the Moroccan economy are significant (5.2% contraction in 2020 forecast by
As part of the communal drive to manage the Covid-19 pandemic, some subsidiaries also participated in the collective effort with contributions to the funds set up by the authorities of each country.
► Highlights
On June,1st 2020,
► Review of the Group's outlook for 2020
On the basis of the information available to date and due the uncertainties generated by the Covid-19 crisis,
- Slight decrease in revenues;
- Slight decrease in EBITDA;
- CAPEX of approximately 10% of revenues, excluding frequencies and licenses.
Overview 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) | Q2-2019 | Q2-2020 | Change | 6M-2019 | 6M-2020 | Change | |
Revenues | 5,331 | 5,124 | -3.9% | 10,713 | 10,524 | -1.8% | |
Mobile | 3,487 | 3,234 | -7.3% | 6,959 | 6,779 | -2.6% | |
Services | 3,456 | 3,205 | -7.3% | 6,794 | 6,637 | -2.3% | |
Equipment | 31 | 29 | -5.0% | 165 | 142 | -13.9% | |
Fixed-line | 2,301 | 2,408 | +4.6% | 4,657 | 4,727 | +1.5% | |
Of which Fixed-line Data* | 765 | 911 | +19.1% | 1,538 | 1,740 | +13.2% | |
Eliminations and other income | -457 | -518 | -903 | -981 | |||
EBITDA | 3,111 | 3,008 | -3.3% | 6,136 | 5,980 | -2.5% | |
Margin (%) | 58.4% | 58.7% | +0.4 pt | 57.3% | 56.8% | -0.5 pt | |
Adjusted EBITA | 2,117 | 2,046 | -3.4% | 4,170 | 4,037 | -3.2% | |
Margin (%) | 39.7% | 39.9% | +0.2 pt | 38.9% | 38.4% | -0.6 pt | |
CAPEX(2) | 525 | 281 | -46.5% | 877 | 564 | -35.7% | |
Of which frequencies & licenses | |||||||
CAPEX/revenues (excl.frequencies & licenses) | 9.9% | 5.5% | -4.4 pt | 8.2% | 5.4% | -2.8 pt | |
Adjusted CFFO | 2,026 | 2,636 | +30.1% | 3,818 | 4,256 | +11.5% | |
Net Debt | 15,299 | 11,891 | -22.3% | 15,299 | 11,891 | -22.3% | |
Net Debt/EBITDA(3) | 1.2x | 0.9x | 1.2x | 0.9x |
*Fixed-line Data includes Internet, TV over ADSL and Corporate Data services
At the end of
EBITDA for the same period was
Adjusted EBITA(5) was
Adjusted cash flow from operations (CFFO)(6) in
Mobile
| Unit | 6M-2019 | 6M-2020 | Change |
Customer base(8) | (000) | 19,547 | 19,572 | +0.1% |
Prepaid | (000) | 17,364 | 17,234 | -0.7% |
Postpaid | (000) | 2,183 | 2,338 | +7.1% |
Of which 3G/4G+ Internet(9) | (000) | 11,119 | 11,764 | +5.8% |
ARPU(10) | (MAD/month) | 57.5 | 55.1 | -4.2% |
As of
Mobile revenues was down 2.6%, to
Combined ARPU (10) for the first six months of 2020 was
Fixed- line & Internet
| Unit | 6M-2019 | 6M-2020 | Change |
Fixed lines | (000) | 1,851 | 1,979 | +6.9% |
Broadband Access(11) | (000) | 1,529 | 1,689 | +10.5% |
At the end of
The Fixed-line and Internet activities in
- International
Financial indicators
(IFRS in MAD million) | Q2-2019 | Q2-2020 | Change | Change on a like-for-like basis (1) | 6M-2019 | 6M-2020 | Change | Change on a like-for-like basis (1) | ||||||
Revenues | 3,887 | 4,111 | +5.8% | -2.0% | 7,824 | 8,318 | +6.3% | +0.1% | ||||||
Of which Mobile services | 3,537 | 3,736 | +5.6% | -2.8% | 7,118 | 7,595 | +6.7% | -0.2% | ||||||
EBITDA | 1,652 | 1,800 | +9.0% | +6.8% | 3,273 | 3,623 | +10.7% | +8.5% | ||||||
Margin (%) | 42.5% | 43.8% | +1.3 pt | +3.6 pt | 41.8% | 43.6% | +1.7 pt | +3.4 pt | ||||||
Adjusted EBITA | 843 | 877 | +4.0% | +8.0% | 1,692 | 1,798 | +6.3% | +8.8% | ||||||
Margin (%) | 21.7% | 21.3% | -0.4 pt | +2.0 pt | 21.6% | 21.6% | +0.0 pt | +1.7 pt | ||||||
CAPEX(2) | 508 | 378 | -25.7% | -47.3% | 2,351 | 622 | -73.5% | -75.5% | ||||||
Of which frequencies & licenses | 1,327 | |||||||||||||
CAPEX/revenues (excluding frequencies & licenses) | 13.3% | 9.2% | -4.1 pt | -8.1 pt | 13.1% | 7.5% | -5.6 pt | -7.3 pt | ||||||
Adjusted CFFO | 910 | 1,570 | +72.5% | +73.2% | 1,909 | 2,843 | +48.9% | +42.6% | ||||||
Net Debt | 8,698 | 8,206 | -5.7% | +0.3% | 8,698 | 8,206 | -5.7% | +0.3% | ||||||
Net Debt/EBITDA(3) | 1.3x | 1.1x | 1.3x | 1.1x |
In an economic context marked by the consequences of the Covid-19 crisis, the Group's international operations have shown so far resilience and posted revenues up 6.3% (+0.1% on a like-for-like basis (1)) compared to 2019. Growth in Data Mobile and Mobile Money services more than offset the decline in Voice revenues.
In the first six months of 2020, EBITDA was
During the same period, adjusted EBITA(5) improved by 6.3% (up 8.8% on a like-for-like basis (1)) to
Adjusted cash flow from operations (CFFO)(6) improved by 48.9% (+42.6% on a like-for-like basis (1)) to
Operating indicators
Unit | 6M-2019 | 6M-2020 | Change | |
Mobile | ||||
Customer base(8) | (000) | 39,372 | 44,721 | |
| 2,389 | 2,400 | +0.5% | |
| 8,020 | 8,930 | +11.3% | |
| 1,648 | 1,413 | -14.3% | |
| 7,483 | 7,909 | +5.7% | |
Côte d’Ivoire | 8,899 | 9,231 | +3.7% | |
Bénin | 4,362 | 4,339 | -0.5% | |
| 3,608 | 3,108 | -13.8% | |
| 2,810 | 2,979 | +6.0% | |
| 153 | 184 | +20.4% | |
| - | 4,227 | - | |
Fixed lines | ||||
Parc | (000) | 322 | 330 | |
| 57 | 58 | +1.6% | |
| 77 | 75 | -2.6% | |
| 22 | 23 | +6.2% | |
| 167 | 175 | +4.7% | |
Fixed lines Broadband | ||||
Parc (10) | (000) | 114 | 126 | |
| 11 | 18 | +67.0% | |
| 15 | 14 | -5.4% | |
| 18 | 20 | +11.9% | |
| 71 | 75 | +5.5% |
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) 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
H1-2019 | H1-2020 | |||||
(in MAD millions) | International | Group | International | Group | ||
Adjusted EBITA | 4,170 | 1,692 | 5,862 | 4,037 | 1,798 | 5,836 |
Published EBITA | 4,170 | 1,692 | 5,862 | 4,037 | 1,798 | 5,836 |
Group share of adjusted Net Income | 3,022 | 3,006 | ||||
Non-recurring items: | ||||||
Covid-19 contributions | -1,038 | |||||
3,022 | 1,969 | |||||
Adjusted CFFO | 3,818 | 1,909 | 5,728 | 4,256 | 2,843 | 7,099 |
Non-recurring items: | ||||||
Payment of licenses | -1,841 | -1,841 | -107 | -107 | ||
ANRT penalty | -3,300 | -3,300 | ||||
Published CFFO | 3,818 | 68 | 3,887 | 956 | 2,736 | 3,692 |
The semester was marked by the disbursement of
The first six months of 2019 included the payment of
Appendix 2: Impact of the adoption of IFRS 16
As at
H1-2020 | |||
(in MAD million) | International | Group | |
EBITDA | +137 | +138 | +275 |
Adjusted EBITA | +23 | +21 | +44 |
Group share of adjusted Net Income | +0 | ||
Adjusted CFFO | +137 | +138 | +275 |
Net Debt | +881 | +729 | +1,610 |
Appendix 3: Consolidated financial statements
Consolidated Statement of Financial Position
ASSETS (in MAD million) | |||
9,201 | 9,306 | ||
Other intangible assets | 8,808 | 8,393 | |
Property, plant and equipment | 31,037 | 29,349 | |
Right-of-use asset | 1,630 | 1,654 | |
Non-current financial assets | 470 | 619 | |
Deferred tax assets | 339 | 409 | |
Non-current assets | 51,485 | 49,729 | |
Inventories | 321 | 304 | |
Trade & other receivables | 11,380 | 13,069 | |
Short-term financial assets | 128 | 137 | |
Cash and cash equivalents | 1,483 | 2,271 | |
Assets available for sale | 54 | 54 | |
Current assets | 13,365 | 15,835 | |
TOTAL ASSETS | 64,851 | 65,564 | |
LIABILITIES (in MAD million) | |||
Share capital | 5,275 | 5,275 | |
Consolidated reserves | 4,069 | 2,031 | |
Consolidated net income for the period | 2,726 | 1,969 | |
Shareholders’ equity - Group share | 12,069 | 9,275 | |
Non-controlling interests | 3,934 | 3,542 | |
Shareholders’ equity | 16,003 | 12,817 | |
Non-current provisions | 504 | 573 | |
Borrowings and other long-term financial liabilities | 4,178 | 4,886 | |
Deferred tax liabilities | 258 | 233 | |
Other non-current liabilities | |||
Non-current liabilities | 4,939 | 5,692 | |
Trade payables | 23,794 | 28,958 | |
Current tax liabilities | 733 | 519 | |
Current provisions | 4,634 | 1,441 | |
Borrowings and other short-term financial liabilities | 14,748 | 16,137 | |
Current liabilities | 43,908 | 47,055 | |
TOTAL LIABILITIES | 64,851 | 65,564 |
Statement of comprehensive income
(In MAD million) | |||
Revenues | 17,844 | 18,323 | |
Cost of purchases | -2,801 | -2,699 | |
Payroll costs | -1,550 | -1,464 | |
Taxes | -1,469 | -1,616 | |
Other operating income and expenses | -2,555 | -5,949 | |
Net depreciation, amortization, and provisions | -3,607 | -759 | |
Operating earnings | 5,862 | 5,836 | |
Other income and expenses from ordinary activities | -5 | -1,513 | |
Income from ordinary activities | 5,857 | 4,323 | |
Income from cash and cash equivalents | 1 | 7 | |
Gross cost of financial debt | -322 | -423 | |
Net cost of financial debt | -321 | -416 | |
Other financial income and expense | -10 | -16 | |
Financial income | -331 | -432 | |
Income tax | -2,040 | -1,490 | |
Net income | 3,485 | 2,401 | |
Translation differences resulting from foreign business activities | -59 | 138 | |
Other income and expenses | 0 | -2 | |
Total comprehensive income for the period | 3,426 | 2,537 | |
Net income | 3,485 | 2,401 | |
Attributable to equity holders of the parent | 3,022 | 1,969 | |
Non-controlling interests | 463 | 432 | |
Earnings per share | |||
Net income attributable to equity holders of the parent (in MAD million) | 3,022 | 1,969 | |
Number of shares at | 879,095,340 | 879,095,340 | |
Net earnings per share (in MAD) | 3.44 | 2.24 | |
Diluted net earnings per share (in MAD) | 3.44 | 2.24 |
Consolidated cash flow statement
(In MAD million) | |||
Income from operations | 5,862 | 5,836 | |
Depreciation, amortization, and other restatements | 3,608 | -759 | |
Gross cash flow | 9,470 | 5,077 | |
Other changes in net working capital requirement | -1,335 | -616 | |
Net cash flow from operating activities before tax | 8,135 | 4,461 | |
Income tax paid | -1,870 | -2,213 | |
Net cash flow from operating activities (a) | 6,265 | 2,248 | |
Purchase of property, plant and equipment and intangible assets | -4,219 | -2,287 | |
Increase in financial assets | -1,206 | -157 | |
Disposals of property, plant and equipment and intangible assets | 2 | 6 | |
Decrease in financial assets | 202 | 41 | |
Dividends received from non-consolidated equity investments | -42 | 0 | |
Net cash flow used in investing activities (b) | -5,263 | -2,397 | |
Capital increase | 0 | 0 | |
Dividends paid to shareholders | -5,732 | 0 | |
Dividends paid by subsidiaries to their non-controlling shareholders | -465 | -431 | |
Changes in equity capital (c) | -6,197 | -431 | |
New borrowings and increase in other long-term financial liabilities | 1,909 | 2,449 | |
Loan repayments and decrease in other long-term financial liabilities | 0 | 0 | |
Change in short-term financial liabilities | 3,665 | -680 | |
Net interest paid (cash only) | -403 | -392 | |
Other cash items relating to financing activities | -33 | -52 | |
Change in borrowings and other financial liabilities (d) | 5,139 | 1,326 | |
Net cash flow used in financing activities (e) = (c) + (d) | -1,058 | 894 | |
Translation adjustments (f) | -10 | 42 | |
Total cash flows (a)+(b)+(e)+(f) | -66 | 788 | |
Cash and cash equivalents at beginning of period | 1,700 | 1,483 | |
Cash and cash equivalents at end of period | 1,634 | 2,271 |
Attachment
- Maroc Telecom_PR_H1 2020 Results_ANG
© OMX, source