Mobile slowdown pulls down Maroc Telecom revenue
Maroc Telecom's group revenue fell 2.7% for the year ended December 31, 2021, as its home market of Morocco's mobile revenue contracted by 8.1%.
Group revenue dropped from 36.8 billion Moroccan Dirhams (US$3.9 billion) in 2020 to MAD35.8 billion (US$3.8 billion) in 2021 but a good revenue performance from its Moov Africa subsidiaries and fixed broadband in Morocco partially offset the slowdown in mobile activities in Morocco, which the group said was "still impacted by the competitive and regulatory environment."
The telco said revenues of its Moov Africa subsidiaries grew 1.5%, at constant exchange rates, driven by mobile data and mobile money services growth. Moov Africa subsidiaries' turnover also grew by 3.4% for the year.
Maroc Telecom rebranded its African subsidiaries to Moov Africa in early 2021. The subsidiaries include operations in Mauritania, Burkina Faso, Gabon, Mali, Côte d'Ivoire, Benin, Togo, Niger, Central African Republic and Chad.
The overall customer base grew by 1.8% for the year, now reaching more than 74 million customers. The markets outside of Morocco also grew by 1.9% to 50.6 million users.
Revenues from the group's activities in Morocco were down 4.7% compared with 2020, mainly impacted by the decline in the mobile business. Growth of 7.6% in fixed data in Morocco did help however.
At the end of 2021, adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in Morocco amounted to MAD11.2 billion (US$1.2 billion), down 6% compared with 2020. The adjusted EBITDA margin rate remained high at 56.4%.
Middle Eastern operator Etisalat Group owns a 53% stake in Maroc Telecom.
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*Top image source: Business photo created by senivpetro - www.freepik.com.
— Paula Gilbert, Editor, Connecting Africa