ITISSALAT AL-MAGHRIB (IAM) S.A. PRESS RELEASE
Rabat, October 26, 2015
Highlights :
» Acceleration in revenues' growth which increased by 22% in the third quarter (+4.8% like-for-like ) ;
» Sustained growth in Group results: EBITDA and the EBITA up 5.1% and 7.5% respectively in the third quarter like-for-like;
» Group customer base nearly 51 million customers, up 29% year-on-year, thanks to the acquisition of new subsidiaries ;
» Return to revenue growth in Morocco (+3.3% in the third quarter) thanks to strong business in the Fixed segment (+9.2%), and the resilience of Mobile activity in a very competitive environment ;
» First positive effects of the implementation of the action plan in the new subsidiaries whose revenues rose by more than 11% in the third quarter.
Perspectives 2015 maintained (with the new subsidiaries) :
► CAPEX level approximately 20% of revenues, excluding frequencies and licenses.
With the publication of this press release, Mr. Abdeslam Ahizoune, Chairman of the Board of Directors, stated:
'Maroc Telecom Group is resuming growth, thanks to an upturn in Morocco despite a highly competitive environment and the strong performances of our subsidiaries. These results show the success of our offers in our markets, in Morocco and Sub-Saharan Africa, as well as the
relevance of our strategy of differentiating through the performance and the quality of our network infrastructures. Our continued investments in Ultra-High-Speed Fixed and Mobile will support and strengthen this profitable growth.'
GROUP CONSOLIDATED INCOME
IFRS in millions of MAD | 9M-2014 | 9M-2015 | Change, like-for-like (1) |
Revenue | 21,865 | 25,503 | 1.7% |
EBITDA | 12,009 | 12,757 | 1.0% |
Margin (%) | 54.9% | 50.0% | -0.3 pt |
EBITA | 8,110 | 8,102 | 0.4% |
Margin (%) | 37.1% | 31.8% | -0.4 pt |
Net Income - Group share | 4,611 | 4,324 | |
CAPEX (2) | 3,109 | 4,752 | |
CAPEX/Revenue | 14.2% | 18.6% | |
CFFO | 7,765 | 7,033 |
► Customer base
The Group's customer base was nearly 51 million customers as at September 30, 2015, up 29% year-on-year due to the consolidation of the six African subsidiaries into the Group's scope since January 26, 2015.
► Revenues
Over the course of the first nine months of 2015, Maroc Telecom Group achieved consolidated revenues(3) of MAD 25,503 million, up 16.6% compared to the same period the previous year following the consolidation of the six African subsidiaries into the Group's scope. On a like-for- like basis(1), revenues were up 1.7% due to a slight 0.2% decline in revenues in Morocco offset by steady growth in revenues from International activities (+6.5%).
Looking at the third quarter only, Maroc Telecom Group consolidated revenues were up 4.8% on a like-for-like basis, thanks to resumed revenue growth in Morocco (+3.3%) and accelerating International growth (+8.7%).
► Earnings from operations before depreciation & amortization
As at the end of September 2015, Maroc Telecom group's earnings from operations before depreciation & amortization (EBITDA) were MAD 12,757 million, up 6.2% (+1.0% like-for-like). This like-for-like growth in EBITDA reflects a 2.2% decline in EBITDA in Morocco offset by the strong 8.6% rise in EBITDA of International activities.
Group EBITDA margin has remained high at 50.0% over the course of the first nine months of 2015, down 4.9 points due the dilutive effect of the consolidation of the new African subsidiaries. On a like-for-like basis, Group EBITDA margin remains relatively stable (-0.3 point).
Looking at the third quarter only, Group EBITDA was up 5.1% on a like-for-like basis thanks to Morocco's EBITDA resumed growth (+1.6%) and the strong increase in International EBITDA (+13.2%).
► Earnings from operations
As at the end of September 2015, Maroc Telecom Group's consolidated earnings from operations(4) (EBITA) were MAD 8,102 million, down only 0.1% compared to the same period the previous year (+0.4% like-for-like). This slight like-for-like increase in EBITA reflects the growth in EBITDA offsetting the increase in depreciation charges (+1.6% like-for-like).
Looking at the third quarter only, Group EBITA was up 7.5% due to the EBITDA growth and the relatively stable depreciation charges.
► Net income - Share of the Group
Net income Group share was down 6.2% due to the financial burden connected with the acquisition and consolidation of the new subsidiaries. Looking at the third quarter only, the net income Group share was down only 2.6% due to business growth.
► Cash Flow from operations
Over the course of the first nine months of 2015, cash flow from operations (CFFO)(5) was MAD 7,033 million, 9.4% less than the same period the previous year as a result of the payment of the 4G license in Morocco (MAD 910 million) and to the renewal of the 2G license in Mauritania for MAD 301 million. Excluding licenses, Maroc Telecom Group CFFO was up 6.2%, the 61% CFFO increase in International activities more than offsetting the 12% CFFO decrease in activities in Morocco.
REVIEW OF GROUP ACTIVITIES
Morocco
IFRS in millions MAD | 9M-2014 | 9M-2015 | Change |
Revenues | 15,937 | 15,910 | -0.2% |
Mobile | 11,557 | 10,876 | -5.9% |
Services | 11,217 | 10,684 | -4.7% |
Equipment | 340 | 192 | -43.6% |
Fixed | 5,944 | 6,514 | +9.6% |
Including Fixed Data | 1,487 | 1,660 | +11.6% |
Eliminations and other revenues | -1,564 | -1,480 | |
EBITDA | 8,916 | 8,718 | -2.2% |
Margin (%) | 55.9% | 54.8% | -1.1 pt |
EBITA | 6,189 | 5,979 | -3.4% |
Margin (%) | 38.8% | 37.6% | -1.2 pt |
CAPEX | 1,961 | 3,130 | 59.6% |
CAPEX/Revenue | 12.3% | 19.7% | 7.4 pts |
CFFO | 5,833 | 4,222 | -27.6% |
*Fixed Data includes Internet, TV on ADSL and Data services to businesses
Over the course of the first nine months of 2015, activities in Morocco generated revenues of MAD 15,910 million, down only 0.2%.
Looking at the third quarter only, the revenues were MAD 5,467 million, up 3.3% due to the strong performance of Fixed and Internet activities that rose by 9.2% and to the limited decline in the Mobile segment over the period (-2.4%) in a market that continues to sustain heavy price pressure.
Earnings from operations before depreciation & amortization (EBITDA) in the first nine months of 2015 were MAD 8,718 million, down 2.2% versus the same period the previous year. This change reflects the rising of interconnection costs with other operators and the limited rise in operating costs. EBITDA margin remained high at 54.8%, down only 1.1 point.
Earnings from operations were MAD 5,979 million, down 3.4%. This decline reflects the decrease in EBITDA and the 0.5% rise in depreciation charges. EBITA margin was 37.6%, down only 1.2 point.
Cash flow from operations in Morocco was down 27.6% to MAD 4,222 million, as a result of the payment of MAD 910 million for the 4G license in Morocco and the related spectrum rearrangement. Excluding these items, cash flow from operations in Morocco was down 12%, reflecting the decline in EBITDA and the capital expenditure made for the launch of 4G.
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