ITISSALAT AL-MAGHRIB (IAM) S.A. , | PRESS RELEASE |
Rabat, April 26, 2023 | |
Q1 2023 CONSOLIDATED RESULTS
An encouraging start to the year with growing results:
- Consolidated revenue growth of 3.7%, with +0.6% in Morocco and +7.3% for the subsidiaries;
- Increase in Mobile Data revenues from Moov Africa subsidiaries (+27%) and Fixed Data revenues in Morocco (+7.2% thanks to the expansion of the FTTH customer base to +45%);
- Decline in ADSL revenues (-12,5%)and Mobile Data revenues (-4.6%)in Morocco;
- Growth in Group EBITDA of 2.6%;
- Adjusted net income Group share up 1.8%.
Despite the unfavorable international context, the Maroc Telecom Group recorded solid operating results and returned to revenue growth in the first quarter of 2023.
This positive trend is due to its investment policy and its efforts to achieve differentiation through the quality of its networks and services.
The activity of the Sub-Saharan subsidiaries continues to play a major role in the Group's performance. Their contribution, combined with the implementation of efficient cost optimization plans, provide Maroc Telecom with the resources necessary for sustainable growth.
The Group relies on a proactive approach that enables it to adapt quickly to constant changes in its market and to seize all opportunities.
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GROUP ADJUSTED* CONSOLIDATED RESULTS
Change at | ||||||||||
(IFRS in MAD millions) | Q1 2022 | Q1 2023 | Change | constant | ||||||
exchange | ||||||||||
rates(1) | ||||||||||
Revenues | 8,770 | 9,093 | 3.7% | 1.0% | ||||||
Adjusted EBITDA | 4,519 | 4,637 | 2.6% | 0.3% | ||||||
Margin (%) | 51.5% | 51.0% | -0.5 pt | -0.3 pt | ||||||
Adjusted EBITA | 2,815 | 2,890 | 2.7% | 0.5% | ||||||
Margin (%) | 32.1% | 31.8% | -0.3 pt | -0.1 pt | ||||||
Adjusted net income Group share | 1,500 | 1,527 | 1.8% | 0.9% | ||||||
Margin (%) | 17.1% | 16.8% | -0.3 pt | -0.0 pt | ||||||
CAPEX(2) | 1,137 | 855 | -24.8% | -26.9% | ||||||
Of which frequencies and licenses | 0 | 0 | ||||||||
CAPEX/Revenues (excluding frequencies and licenses) | 13.0% | 9.4% | -3.6 pt | -3.6 pt | ||||||
Adjusted CFFO | 3,151 | 3,400 | 7.9% | 5.8% | ||||||
Net debt | 12,288 | 15,419 | 25.5% | 23.0% | ||||||
Net debt/EBITDA(3) | 0.6x | 0.8x |
* Adjustments to financial indicators are set out in Appendix 1.
- Customer base
The Group's customer base stood at over 75 million at the end of March 2023.
- Revenues
In the three months to March 31, 2023, the Maroc Telecom Group recorded consolidated revenues(4) of MAD 9.1 billion, up 3.7% (+1.0% at constant exchange rates(1)), driven by international revenues, up 7.3% (+1.8% at constant exchange rates(1)), as well as revenues in Morocco, which rose by 0.6% compared with the same period in 2022.
- Earnings from operations before depreciation and amortization
The Maroc Telecom Group's first-quarter 2023 adjusted earnings from operations before depreciation and amortization (EBITDA) were up 2.6% (+0.3% at constant exchange rates(1)) at MAD 4,637 million, mainly thanks to the favorable impact of the reduction in Mobile termination rates in some subsidiaries and tight control over operating costs.
The adjusted EBITDA margin remained high at 51.0%.
- Earnings from operations
The Maroc Telecom Group's first-quarter 2023 adjusted earnings from operations (EBITA) reached MAD 2,890 million, up 2.7% (+0.5% at constant exchange rates(1)) in line with the improvement in EBITDA. The adjusted operating margin was 31.8%.
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- Net income Group share
In the first quarter of 2023, adjusted net income Group share was up 1.8% (+0.9% at constant exchange rates(1)) compared with the first quarter of the previous year.
- Cash flow
Adjusted cash flows from operations (CFFO(6)) amounted to MAD 3,400 million, up 7.9% (+5.8% at constant exchange rates(1)) compared with the same period in 2022.
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(IFRS in MAD millions) | Q1 2022 | Q1 2023 | Change |
Revenues | 4,756 | 4,783 | 0.6% |
Mobile | 2,816 | 2,833 | 0.6% |
Services | 2,703 | 2,691 | -0.4% |
Equipment | 113 | 142 | 25.2% |
Fixed | 2,394 | 2,386 | -0.3% |
Of which Fixed Data* | 986 | 1,056 | 7.2% |
Elimination and other income | -454 | -436 | |
Adjusted EBITDA | 2,613 | 2,626 | 0.5% |
Margin (%) | 54.9% | 54.9% | -0.1 pt |
Adjusted EBITA | 1,742 | 1,753 | 0.7% |
Margin (%) | 36.6% | 36.7% | 0.0 pt |
CAPEX(2) | 726 | 416 | -42.6% |
Of which frequencies and licenses | 0 | 0 | |
CAPEX/Revenues (excluding frequencies and licenses) | 15.3% | 8.7% | -6.6 pt |
Adjusted CFFO | 1,919 | 2,061 | 7.4% |
Net debt | 7,789 | 8,539 | 9.6% |
Net debt/EBITDA(3) | 0.7x | 0.8x |
* Fixed Data includes Internet, ADSL TV and Data services to companies.
In the first three months of 2023, Moroccan operations recorded slight growth of 0.6% and totaled MAD 4,783 million. This performance is mainly due to the Fixed Data revenues (+7,2%).
Adjusted earnings from operations before depreciation and amortization (EBITDA) amounted to MAD 2,626 million, up 0.5% compared with the same period of the previous year. The EBITDA margin was stable year-on-year at the high level of 54.9%.
Adjusted earnings from operations (EBITA(5)) amounted to MAD 1,753 million, up 0.7%, mainly bolstered by the increase in EBITDA. The adjusted EBITA margin was stable compared to 2022 at 36.7%.
In the first quarter of 2023, adjusted cash flows from operations (CFFO(6)) increased by 7.4% to MAD 2,061 million.
4
Mobile
Unit | 03/31/2022 | |
Customer base(8) | (000) | 19,867 |
Prepaid | (000) | 17,487 |
Postpaid | (000) | 2,380 |
Of which Internet 3G/4G+(9) | (000) | 10,287 |
ARPU(10) | (MAD/month) | 44.9 |
03/31/2023
19,159
16,719
2,440
10,939
45.7
Change
-3.6%
-4.4%
2.5%
6.3%
1.8%
At the end of March 2023, the Mobile customer base(8) totaled 19.2 million, with postpaid customer base up 2.5% year-on-year.
Mobile revenues for the first quarter of 2023 were up 0.6% compared with the same period last year.
First-quarter 2023 blended ARPU amounted to MAD 45.7, up 1.8% year-on-year.
Fixed-line and Internet
Unit
Fixed-line | (000) |
Broadband access(11) | (000) |
03/31/2022
1,959
1,723
03/31/2023
1,899
1,677
Change
-3.0%
-2.6%
The Fixed-line customer base stands at nearly 1.9 million lines at end-March 2023. The growth of the FTTH customer base (+45%) virtually offsets the decline in the ADSL customer base.
Fixed-line and Internet activities generated revenues of MAD 2.4 billion, slightly down by 0.3% compared to 2022. The growth in Fixed Data (+7.2%) offsets the decline in Voice.
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Maroc Telecom - Itissalat Al-Maghrib published this content on 26 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2023 04:56:01 UTC.
