Consolidated results for the first nine months of 2017
Highlights:
-
8% increase in the Group's
customer base which exceeds 56 million customers;
-
2.3% increase in consolidated Outgoing Services
revenues;
-
EBITDA margin up 1.3
points, to reach 50% at constant exchange rates;
-
Group share of adjusted* net
income up 4.2% at constant exchange rates;
-
Confirmation of return to
growth of Outgoing Mobile revenues in Morocco, thanks to the
strong enthusiasm for Mobile Internet;
-
Acceleration of the roll-out of
Very High Speed networks in Morocco to meet strong
demand;
-
Sustained growth of new
subsidiaries: 11% revenue growth and 42% EBITDA growth at
constant exchange rates, for the first nine months of 2017.
2017 outlook
maintained, at constant scope and exchange rates:
-
Slight decrease in revenues due
to new regulatory measures;
-
Stable EBITDA;
-
CAPEX of approximately 23% of
revenues, excluding frequencies and licenses.
To mark the
publication of this press release, Abdeslam Ahizoune, Chairman of
the Management Board, made the following comments:
"The results of
the third quarter confirm the improvement in trends observed in the
first half of the year and validate the Group's strategic choices
that are the International development and the accelerated rollout
of Very High Speed Fixed-Line and Mobile networks to support the
growing use of Data. The implementation of the massive investment
and modernization plans of the new African subsidiaries is ongoing,
and is beginning to bear fruit in terms of growth and contribution
to the Group's performance."
*adjusted from the impact of
restructuring charges in 2017 and disposal of real estate asset in
2016 (cf: appendix 1)
group adjusted* consolidated
results
IFRS in MAD
million |
9M-2016 |
9M-2017 |
Change |
Change
at constant exchange rates(1) |
Revenues |
26,674 |
26,020 |
-2.5% |
-2.3% |
EBITDA |
12,934 |
12,960 |
+0.2% |
+0.4% |
Margin
(%) |
48.5% |
49.8% |
+1.3
pts |
+1.3
pts |
Adjusted EBITA |
8,064 |
8,088 |
0.3% |
+0.5% |
Margin
(%) |
30.2% |
31.1% |
+0.9
pts |
+0.9
pts |
Group
share of adjusted net income - |
4,302 |
4,482 |
+4.2% |
+4.2% |
Margin
(%) |
16.1% |
17.2% |
+1.1
pts |
+1.1
pts |
CAPEX(2) |
5,170 |
5,430 |
+5.0% |
|
Of which
frequencies & licenses |
888 |
149 |
|
|
CAPEX/revenues (excluding frequencies & licenses) |
16.0% |
20.3% |
+4.3
pts |
|
Adjusted CFFO |
7,767 |
7,870 |
+1.3% |
|
* Details of the financial
indicator adjustments are provided in Appendix 1.
The Group's customer base amounted
to over 56 million customers at September 30, 2017, an increase of
7.7% year-on-year, driven by an expansion in the Mobile customer
bases in Niger, Togo and Ivory Coast, as well as by the sustained
growth of the Mobile and Fixed-Line broadband customer bases in
Morocco.
Maroc Telecom Group's revenues for
the first nine months of 2017 amounted to MAD 26,020
million, down slightly by 2.5% (-2.3% at constant exchange rates).
This change was due to a decline in incoming revenues following the
liberalization of IP telephony in November 2016 in Morocco and the
decrease in mobile termination rates in Morocco and in the African
subsidiaries. Revenues from Outgoing Services were up 2.3% thanks
to the growth in the customer base and increased Data usage.
- Earnings from
operations before depreciation and amortization
At end-September 2017, Maroc
Telecom Group's earnings from operations before depreciation and
amortization (EBITDA) amounted to MAD 12,960 million, up 0.2%
(+0.4% at constant exchange rates). The 12.2% growth in EBITDA
(+12.8% at constant exchange rates) from International operations
more than offset the 5.8% decline in EBITDA in Morocco.
The EBITDA margin was up 1.3 pts
year-on-year, and reached a high level of 49.8% thanks to
significant efforts to optimize costs, and to the favorable impact
of decreases in Mobile termination rates at the Sub-Saharan
subsidiaries.
At end-September 2017, Maroc
Telecom Group's consolidated adjusted earnings from operations
(EBITA)(4) amounted to
MAD 8,088 million, up 0.3% from the same period in 2016 (+0.5% at
constant exchange rates) thanks to the increase in EBITDA. The
adjusted EBITA margin rose by 0.9 pts at constant exchange rates to
31.1%.
- Group share of net
income
The Group's share of adjusted net
income amounted to MAD 4,482 million, up 4.2% at constant exchange
rates compared to the same period of 2016, thanks to the strong
increase in net income from International operations driven by the
success of the restructuring of the new Moov subsidiaries which are
now showing an overall positive net result.
In the first nine months of 2017,
adjusted cash flow from operations (CFFO)(5) was
MAD 7,870 million, up 1.3% from the first nine months of
2016, driven by an improvement in CFFO in Morocco despite the
intensification of the pace of capital investment.
review of the group's
activities
Details of the financial
indicator adjustments for "Morocco" and "International" are
provided in Appendix 1.
IFRS in MAD
million |
9M-2016 |
9M-2017 |
Change |
Revenues |
16,216 |
15,316 |
-5.6% |
Mobile |
10,717 |
9,999 |
-6.7% |
Services |
10,452 |
9,851 |
-5.7% |
Equipment |
265 |
147 |
-44.5% |
Fixed-Line |
6,740 |
6,696 |
-0.7% |
Of which
Fixed-Line Data* |
1,798 |
1,980 |
+10.1% |
Eliminations and other income |
-1,241 |
-1,379 |
|
EBITDA |
8,630 |
8,133 |
-5.8% |
Margin
(%) |
53.2% |
53.1% |
-0.1
pts |
Adjusted EBITA |
5,829 |
5,320 |
-8.7% |
Margin
(%) |
35.9% |
34.7% |
-1.2
pts |
CAPEX |
2,355 |
3,127 |
+32.8% |
Of which frequencies
& licenses |
|
|
|
CAPEX/revenues (excluding frequencies & licenses) |
14.5% |
20.4% |
+5.9
pts |
Adjusted CFFO |
4,902 |
5,328 |
+8.7% |
*Fixed-Line Data includes Internet, ADSL TV
and corporate Data services
Revenues from operating activities
in Morocco was MAD 15,316 million for the first nine months of the
year, down 5.6%, following the reintroduction of asymmetric mobile
termination rates in March 2017 and the liberalization of IP
telephony in November 2016.
Revenues from Outgoing Services
grew by 1.2%, sustained by the success of Mobile and Fixed-Line
Data services, whose revenues registered strong growth of 55% and
10.1% respectively.
Earnings from operations before
depreciation and amortization (EBITDA) for the first nine months of
2017 amounted to MAD 8,133 million, down 5.8% compared with the
same period of 2016 due to the decline in revenues. The EBITDA
margin was almost stable (-0,1 pts) thanks to the 0.5 pts
improvement in the gross margin and the 3.4% decline in operating
costs reflecting the success of the voluntary redundancy plan that
benefited to 1,026 employees.
Adjusted earnings from operations
(EBITA) were down 8.7%, to MAD 5,320 million. This decline was due
to the drop in EBITDA and the 0.7% increase in depreciation charges
reflecting heavy investments to extend the 4G+ network and the
fiber-optic network. The adjusted EBITA margin was 34.7%.
Adjusted cash flow from operations
in Morocco was up 8.7% to MAD 5,328 million, thanks to close
management of working capital requirements (WCR).
Mobile
|
Unit |
9M-2016 |
9M-2017 |
Change |
Mobile |
|
|
|
|
Customer base(6) |
(000) |
18,628 |
18,898 |
+1.5% |
Prepaid |
(000) |
16,913 |
17,140 |
+1.3% |
Postpaid |
(000) |
1,715 |
1,758 |
+2.5% |
of
which Internet 3G/4G+(7) |
(000) |
7,471 |
9,737 |
+30.3% |
ARPU(8) |
(MAD/month) |
61.9 |
57.8 |
-6.6% |
|
|
|
|
|
As of September 30, 2017, the
Mobile customer base(6) was 18.9
million customers, up 1.5% year-on-year, thanks to the 2.5%
increase in postpaid customers and 1.3% increase in prepaid
customers.
In a regulatory environment that
remains restrictive, due to the reinstatement in March 2017 of 20%
asymmetry on call terminations in favor of other operators, and the
decline in incoming international traffic following the
liberalization of IP telephony, Mobile revenues decreased by 6.7%
compared with the same period of the previous year, to MAD 9,999
million.
Revenues from Outgoing Services
were up 0.6% in the first nine months of 2017, driven by the 55%
growth in Mobile Data which more than offset the drop in Voice
revenues.
Blended ARPU(8) for
the first nine months of 2017 remains at a high level of MAD 57.8,
down however by 6.6% compared with the same period in 2016.
Mobile Data continued to expand
with 30% growth of its customers and 82% increase of its traffic,
sustained by increasingly extensive 3G and 4G+ networks covering
93% and 86% of the population.
Fixed-Line and
Internet
|
Unit |
9M-2016 |
9M-2017 |
Change |
Fixed-Line |
|
|
|
|
Fixed
lines |
(000) |
1,615 |
1,682 |
+4.2% |
Broadband access(9) |
(000) |
1,204 |
1,319 |
+9.5% |
The Fixed-Line customer base
increased by 4.2% to 1,7 million lines. The broadband customer base
increased by 9.5% to 1.3 million subscribers.
In the first nine months of 2017,
Fixed-Line and Internet operations in Morocco generated revenues of
MAD 6,696 million, relatively unchanged (-0.7%) from the same
period in 2016 despite the 14.7% drop in income from international
transit minutes, which is a very low-margin business.
Fixed-Line Data is still growing
strongly (+10.1%) driven by growth in the ADSL customer base
(+9.5%).
Financial indicators
IFRS in MAD
million |
9M-2016 |
9M-2017 |
Change |
Change
at constant exchange rates |
Revenues |
11,485 |
11,616 |
+1.1% |
+1.5% |
Of which
Mobile Services |
10,374 |
10,589 |
+2.1% |
+2.5% |
EBITDA |
4,303 |
4,827 |
+12.2% |
+12.8% |
Margin
(%) |
37.5% |
41.6% |
+4.1
pts |
+4.1
pts |
Adjusted EBITA |
2,234 |
2,768 |
+23.9% |
+24.6% |
Margin
(%) |
19.5% |
23.8% |
+4.4
pts |
+4.4
pts |
CAPEX |
2,815 |
2,303 |
-18.2% |
|
Of which frequencies
& licenses |
888 |
149 |
|
|
CAPEX/revenues (excluding frequencies & licenses) |
16.8% |
18.5% |
+1.8
pts |
|
Adjusted CFFO |
2,865 |
2,542 |
-11.3% |
|
In the first nine months of 2017,
the Group's International operations posted revenues of MAD 11,616
million, up 1.1% (+1.5% at constant exchange rates) driven by the
10.9% increase in revenues at the new subsidiaries (at constant
exchange rates), despite the impact of the drop in call termination
rates and the deactivation of unidentified customers. In the third
quarter alone, revenue growth at subsidiaries accelerated (+4.7% at
constant exchange rates) thanks to gains in market share and
substantial investments to support the growth in Voice and Data
usage.
At end-September 2017, Maroc
Telecom Group's earnings from operations before depreciation and
amortization (EBITDA) amounted to MAD 4,827 million, up 12.2%
(+12.8% at constant exchange rates). The EBITDA margin rose by 4.1
points to 41.6%, thanks to the favorable impact of the fall in call
termination rates leading to an improvement in the gross margin
(+0.5 point at constant exchange rates) and the Group's ability to
reduce its operating costs in its subsidiaries (-7.5% at constant
exchange rates).
Adjusted earnings from operations
(EBITA) was MAD 2,768 million, up 23.9% (+24.6% at constant
exchange rates), reflecting the sustained growth of EBITDA and
virtually unchanged depreciation charges (+0.4% at constant
exchange rates).
Over the same period, adjusted
cash flow from international operations declined by 11.3% to MAD
2,542 million due to the increase in CAPEX.
Operating
indicators
|
Unit |
9M-2016 |
9M-2017 |
Change |
Mobile |
|
|
|
|
Customer base(6) |
(000) |
|
|
|
Mauritania |
|
2,051 |
2,140 |
+4.3% |
Burkina Faso |
|
6,968 |
7,086 |
+1.7% |
Gabon |
|
1,726 |
1,626 |
-5.8% |
Mali |
|
6,062 |
6,803 |
+12.2% |
Ivory Coast |
|
6,305 |
7,587 |
+20.3% |
Benin |
|
3,700 |
3,901 |
+5.4% |
Togo |
|
2,352 |
2,782 |
+18.3% |
Niger |
|
1,208 |
1,993 |
+65.0% |
Central African Republic |
|
145 |
140 |
-3.4% |
Fixed-Line |
|
|
|
|
Customer base |
(000) |
|
|
|
Mauritania |
|
47 |
49 |
+4.9% |
Burkina
Faso |
|
72 |
76 |
+5.9% |
Gabon |
|
18 |
21 |
+12.2% |
Mali |
|
145 |
152 |
+4.9% |
Fixed-Line broadband |
|
|
|
|
Customer base(9) |
(000) |
|
|
|
Mauritania |
|
11 |
12 |
+10.8% |
Burkina
Faso |
|
14 |
13 |
-6.2% |
Gabon |
|
12 |
15 |
+26.4% |
Mali |
|
60 |
63 |
+5.6% |
Notes:
(1) At a constant exchange rate
for the MAD, ouguiya and CFA franc.
(2) CAPEX corresponds to purchases of tangible and intangible
assets recognized for the period.
(3) Maroc Telecom consolidates the following companies in its
financial statements: Mauritel, Onatel, Gabon Telecom, Sotelma and
Casanet, as well as the new African subsidiaries (in the Ivory
Coast, Benin, Togo, Niger, and the Central African Republic) and
Prestige Telecom, which has provided IT services to those companies
since their acquisition on January 26, 2015.
(4) EBITA corresponds to earnings from operations 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).
(5) 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 booked at equity 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.
(6) The active customer base consists of prepaid customers who have
made or received a voice call (excluding ERPT or Call-Center calls)
or sent an SMS/MMS or used Data services (excluding ERPT services)
during the past three months, and postpaid customers who have not
terminated their agreements.
(7) 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.
(8) 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.
(9) The broadband customer base includes ADSL access, Fiber To The
Home and leased lines in Morocco, as well as the ADMA customer base
for the historical subsidiaries.
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 Maroc
Telecom believes that these forward-looking statements are based on
reasonable assumptions, they do not amount to guarantees for the
company's future performance. The actual results may be very
different from the forward-looking statements, due to a number of
risks and uncertainties, both known and unknown. The majority of
these risks are beyond our control, namely the risks described in
the public documents filed by Maroc Telecom with the Moroccan
Capital Markets Authority (www.ammc.ma) and
the French Financial Markets Authority
(www.amf-france.org), which are also available
in French on our website (www.iam.ma). This
press release contains forward-looking information that can only be
assessed at its publication date. Maroc Telecom does not undertake
to supplement, update, or alter these forward-looking statements as
a result of new information, future events, or for any other
reason, subject to the applicable regulations, and especially to
Articles III.2.31 et seq. of the circular issued by the Moroccan
Capital Markets Authority and to Articles 223-1 et seq. of the
French Financial Markets Authority's General Regulations.
Maroc Telecom is a full-service telecommunications operator
in Morocco and the leader in all of its Fixed-Line, Mobile and
Internet business sectors. It has expanded internationally, and
currently operates in ten African countries. Maroc Telecom is
listed on both the Casablanca and Paris Stock Exchanges, and its
majority shareholders are Société de Participation dans les
Télécommunications (SPT*) (53%), and the Kingdom of Morocco
(30%).
*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
Adjusted operating income, Group
share of adjusted net income, and adjusted cash flow from
operations (CFFO), are not strictly accounting measures and should
be considered additional information. They are a better indicator
of the Group's performance as they exclude non-recurring items.
|
9M-2016 |
9M-2017 |
(in MAD millions) |
Morocco |
International |
Group |
Morocco |
International |
Group |
Adjusted EBITA |
5,829 |
2,234 |
8,064 |
5,320 |
2,768 |
8,088 |
Non-recurring items:
Real estate sales |
|
+297 |
+297 |
|
|
|
Restructuring costs |
|
|
|
-193 |
-49 |
-242 |
Published EBITA |
5,829 |
2,532 |
8,361 |
5,127 |
2,719 |
7,846 |
Group share of adjusted net income |
|
|
4,302 |
|
|
4,482 |
Non-recurring items:
Real estate sales |
|
|
+152 |
|
|
|
Restructuring costs |
|
|
|
|
|
-165 |
Published Group share of net income |
|
|
4,454 |
|
|
4,318 |
Adjusted CFFO |
4,902 |
2,865 |
7,767 |
5,328 |
2,542 |
7,870 |
Non-recurring items:
Real estate sales |
|
+317 |
+317 |
|
|
|
Restructuring costs |
|
|
|
-578 |
-60 |
-638 |
License
payments |
|
-33 |
-33 |
|
-558 |
-558 |
Published CFFO |
4,902 |
3,149 |
8,051 |
4,750 |
1,924 |
6,674 |
MT: Consolidated Results for the
first nine months of 2017
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Maroc Telecom via Globenewswire
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