Maroc Telecom : 2017 Consolidated Results

2/19/2018, 6:45 AM (Source: GlobeNewswire)


Achievements exceeding announced targets:

  • 5.5% growth in Group customer base, nearly reaching 57 million customers;
  • Return to sustained growth of consolidated revenues in the fourth quarter (+3.3% at constant exchange rates);
    • In Morocco, resumption of revenue growth in the fourth quarter thanks the surge in Mobile Internet;
    • Very strong performance of the new subsidiaries, with a revenue growth of 11.9% at constant exchange rates;
  • Improved Group profitability: EBITDA margin up 1.2 points at constant exchange rates to 49.1%;
  • Group share of adjusted net income* up 4.4%;
  • Adjusted Cash Flow from operating activities up 3.1% while maintaining a high level of investment amounting to 23% of Group revenues.

Proposed dividend payment of MAD 6.48 per share, up 1.9% vs. 2016 and representing a yield of 4.4%**.

Maroc Telecom Group outlook for 2018 at constant scope and exchange rates:

  • Stable revenues;
  • 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, stated:

"The growth of Maroc Telecom Group's results demonstrates its resilience as well as its agility to anticipate market developments. Its high ability to control its costs and its profitable investment policy allow the Group to improve its margins particularly in the African subsidiaries. More than MAD 8 billion were dedicated this year in rolling out networks and introducing the very latest technological innovations. On the strength of this profitable growth trend, Maroc Telecom will continue in 2018 to pursue its strategy based on innovation to provide its customers with the best technology and services."

*Adjusted by the impact of restructuring charges in 2017 and the real estate disposals in 2016 (see Appendix 1)
**Based on the share price on February 16, 2018 (MAD 147.05)

Group adjusted* consolidated results

IFRS in MAD million 2016 2017 Change Change at constant exchange rates(1)

Revenues 35,252 34,963 -0.8% -0.9%
EBITDA 16,909 17,160 +1.5% +1.5%
Margin (%) 48.0% 49.1% 1.1 pts 1.2 pts
Adjusted EBITA 10,426 10,553 +1.2% +1.2%
Margin (%) 29.6% 30.2% +0.6 pts +0.6 pts
Group share of adjusted net 5,622 5,871 +4.4% +4.1%
Margin (%) 15.9% 16.8% +0.8 pts +0.8 pts
CAPEX(2) 7,983 8,232 +3.1%  
o/w frequencies & licenses 888 217    
CAPEX/revenues (excluding frequencies & licenses) 20.1% 22.9% +2.8 pts  
Adjusted CFFO 10,686 11,019 +3.1%  
Net debt 12,289 13,042 +6.1%  
Net debt/EBITDA 0.7 0.8    

* Details of the financial indicator adjustments are provided in Appendix 1.

  • Customer base

The Group's customer base was nearly 57 million customers at the end of 2017, up 5.5% thanks to the sustained growth of new subsidiaries' Mobile customer bases and the rise in customer numbers for High Speed Mobile and Fixed-Line in Morocco.

  •  Revenues

As of December-end 2017 Maroc Telecom Group's consolidated revenues(3) amounted to MAD 34,963 million, slightly decreasing by 0.8% (-0.9% at constant exchange rates). The 2.4% increase in subsidiaries' revenues at constant exchange rates offset the impact in Morocco of the deregulation of IP telephony since November 2016 and the decline in call termination rates. Revenues from outgoing services were up 3.7% thanks mainly to the growth in the customer base and increased Data usage.

Over the fourth quarter alone, Group revenues were up 4.3% (+3.3% at constant exchange rates) reflecting the combined effects of the resumption of revenue growth in Morocco (+2.7%) and the accelerated revenue growth of the subsidiaries (+5.0% at constant exchange rates).

  • Earnings from operations before depreciation and amortization

At 2017-end, Maroc Telecom Group earnings from operations before depreciation and amortization (EBITDA) amounted to MAD 17,160 million, up 1.5% from the previous year (+1.5% at constant exchange rates). The EBITDA margin increased by 1.2 points over the year (at constant exchange rates) to 49.1% thanks to significant optimization efforts resulting in a 2.3% decrease in Group's operating costs, as well as the impact of the decreases in Mobile call termination rates in the subsidiaries.

  •   Earnings from operations

At 2017-end, Group consolidated adjusted earnings from operations (EBITA)(4) amounted to MAD 10,553 million, up 1.2% vs. 2016 due to EBITDA growth. The adjusted EBITA margin improved by 0.6 points to 30.2%.

  • Group share of net income

The Group share of adjusted net income was MAD 5,871 million, up 4.4%. This increase reflects, in Morocco, the good resistance to VoIP applications and the substantial growth in net income from International operations and particularly the new Moov subsidiaries, which overall, at December-end 2017, produce a very substantially positive net income.

  •    Cash flow

The adjusted cash flow from operations (CFFO)(5) amounted to MAD 11,019 million, up 3.1% from 2016-end thanks to the increase in EBITDA, the close management of Working Capital Requirement (WCR) and despite the increase in capital expenditure that represented 23% of revenues over the full year (excluding frequencies and licenses).

As of December 31, 2017, the consolidated Maroc Telecom Group net debt(6) was up 6.1% at MAD 13 billion. Nevertheless, this represents only 0.8 times the Group's annual EBITDA.

  • Exceptional highlights

The year 2017 was marked by the end of the voluntary redundancy plan, which was launched in 2016 in Morocco and in subsidiaries. This plan benefitted to 1, 068 staff in total, for a global cost of MAD 628 million, of which MAD 243 million in 2017. The total outflows associated with these termination plans reached MAD 620 million in 2017.

2017 was also marked by the payment of MAD 578 million for licenses in Ivory Coast, Gabon, and Togo, as well as the MAD 61 million for the refarming of the 4G spectrum in Morocco.

The 2016 accounts included the proceeds of real estate asset with a capital gain of MAD 297 million (cash impact of MAD 317 million), restructuring charges of MAD 255  million, and the payment of the first installment of the 3G license in Togo for MAD 33 million.

  • Dividends

The Supervisory Board of Maroc Telecom will propose to the General Shareholders' Meeting on April 24, 2018 to effect the payment of an ordinary dividend of MAD 6.48 per share, up 1.9% vs. 2016, representing a total amount of MAD 5.7 billion and corresponding to 100% of the Net Profit. The dividend payment date would be from June 5, 2018.

  • Maroc Telecom Group outlook for 2018

On the basis of the recent changes in the market, to the extent that no new major exceptional event impacts the Group's business, Maroc Telecom is projecting the following for 2018, at constant scope and exchange rates:

  • Stable revenues;
  • Stable EBITDA;
  • CAPEX of approximately 23% of revenues, excluding frequencies and licenses.

Review 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 2016 2017 Change
Revenues 21,244 20,481 -3.6%
Mobile 14,115 13,335 -5.5%
Services 13,806 13,214 -4.3%
Equipment 309 121 -60.9%
Fixed-Line 8,829 8,962 +1,5%
o/w Fixed-Line Data* 2,427 2,664 +9.8%
Eliminations and other income -1,700 -1,816  
EBITDA 11,004 10,804 -1.8%
Margin (%) 51.8% 52.8% +1.0 pt
Adjusted EBITA 7,157 6,954 -2.8%
Margin (%) 33.7% 34.0% +0.3 pt
CAPEX 3,905 4,589 +17.5%
o/w frequencies and licenses   61  
CAPEX/ revenues (excluding frequencies and licenses) 18.4% 22.1% +3.7 pt
Adjusted CFFO 7,124 7,319 +2.7%
Net debt 10,937 11,009 +0.7%
Net debt/EBITDA 1.0 1.0  

*Fixed-line data includes Internet, ADSL TV and Data services to businesses

In 2017, operations in Morocco generated revenues of MAD 20,481 million, down 3.6%. The decline in incoming international traffic induced by the deregulation of IP telephony in November 2016 and the asymmetry of Mobile call termination rates since the first of March 2017 have weighed on Mobile revenues but are nevertheless partially offset by the increase in Fixed-Line and Internet activities.

Over the fourth quarter of 2017 alone, revenues in Morocco grew by 2.7%. This return to growth reflects the surge in Fixed-Line and Internet activities which revenues' grew by 8.5% and the slowdown of the decline in Mobile revenues thanks to the popularity of Mobile Internet.

The Fixed-Line and Internet activities' growth combined to the savings coming from the voluntary redundancy plan and efforts to optimize costs have increased the EBITDA margin by 1.0 points to 52.8%.

Adjusted earnings from operations were MAD 6,954 million, down 2.8% due to the decline in EBITDA. The adjusted EBITA margin improved by 0.3 points vs. prior year to 34.0%.

Cash flow from operations in Morocco was up 2.7% to more than MAD 7 billion, thanks to continued efforts to optimize Working Capital Requirements (WCR).



Unit  2016 2017 Change
Customer base(7) (000) 18,375 18,533 +0.9%
 Prepaid (000) 16,645 16,766 +0.7%
 Postpaid (000) 1,729 1,767 +2.2%
o/w 3G/4G+ Internet(8) (000) 7,844 9,481 +20.9%
ARPU(9) (MAD/month) 61.1 58.0 -5.0%

As of December 31, 2017, the Mobile customer base(7) numbered 18.5 million customers, up 0.9% year-on-year, thanks to the 2.2% rise in postpaid customers and the 0.7% rise in prepaid customers.

Mobile revenues amounted to MAD 13,335 million, down 5.5% from 2016, suffering from the impact of deregulation of IP telephony since 2016 and the asymmetry of Mobile call terminations since March 2017.

Outgoing revenues increased by 1.9% to MAD 10,511 million, driven by the sharp growth in Mobile Data (+53%), which more than offset the decrease in Voice.

Mobile Data continues to be very popular. The Mobile Data customer base increased by 21% and its traffic by 78%, supported mainly by the extension of 4G+ network which covered 93% of the population at December-end 2017.

Blended 2017 ARPU(9) amounted to MAD 58, down by 5.0% compared to the same period in 2016 due to the decline in incoming revenues.

Fixed-Line and Internet


Unit 2016 2017 Change
Fixed lines (000) 1,640 1,725 +5.2%
Broadband access(10) (000) 1,241 1,363 +9.8%

The Fixed-line customer base was 1.7 million lines at year-end 2017, up by a sustained 5.2%, thanks to the ADSL services. The broadband customer base increased by 9.8% to nearly reach 1.4 million subscribers, driven by the enhancement of Double-Play packages and success of FTTH offers.

Fixed-Line and Internet posted MAD 8,962 million in revenues, up 1.5% vs. 2016 driven by the growth in customer base.


Financial indicators

IFRS in MAD million 2016 2017 Change Change at constant exchange rates(1)
Revenues 15,326 15,733 +2.7% +2.4%
o/w Mobile Services 13,815 14,274 +3.3% +3.1%
EBITDA 5,905 6,357 +7.6% +7.6%
Margin (%) 38,5% 40,4% +1.9 pt +1.9 pt
Adjusted EBITA 3,268 3,599 +10.1% +10.2%
Margin (%) 21.3% 22.9% +1.6 pt +1.6 pt
CAPEX 4,077 3,643 -10.7%  
o/w licenses and frequencies 888 156    
CAPEX/Rev. (excluding licenses and frequencies) 20.8% 22.2% +1.4 pt  
Adjusted CFFO 3,563 3,700 +3.9%  
Net Debt 4,670 5,767 +23.5%  
Net debt / EBITDA 0.8 0.9    

At 2017-end, the Group's International operations posted revenues of MAD 15,733 million, up 2.7% (+2.4% at constant exchange rates) driven by the 11.9% revenue increase (at constant exchange rates) of the new subsidiaries, offsetting the impacts of the drop in call termination rates, of the erosion of the international incoming traffic and of the deactivation of unidentified customers.

Over the fourth quarter alone, Group revenues from International activities rose by 5.0% at constant exchange rates thanks to the acceleration in growth of the new subsidiaries (+14.5% at constant exchange rates), especially in Ivory Coast and Benin, and the stabilization of historical subsidiaries' activities.

At 2017-end, earnings from operations before depreciation and amortization (EBITDA) amounted to MAD 6,357 million, up 7.6% at constant exchange rates. The EBITDA margin increased by 1.9 points to 40.4%, driven by the call termination rates and operating costs   (-1.0% at constant exchange rates) decreases.

Adjusted earnings from operations (EBITA) were MAD 3,599 million, up 10.2% at constant exchange rates mainly due to the increase in EBITDA. The EBITA margin rose by 1.6 points (at constant exchange rates) to 22.9%.

Adjusted cash flow (CFFO) from international activities was up 3.9% to MAD 3,700 million, despite the acceleration in capital expenditure which reached more than 22% of revenues.

Operating indicators

  Unit 2016 2017 Change
 Customer base(7) (000) 32,370 34,967  
 Mauritania   1,984 2,139 +7.8%
 Burkina Faso   7,017 7,176 +2.6%
 Gabon   1,690 1,547 -8.4%
 Mali   7,087 7,190 +1.5%
 Ivory Coast   6,840 7,734 +13.1%
 Benin   3,727 3,960 +6.2%
 Togo   2,463 2,943 +19.5%
 Niger   1,418 2,114 +49.0%
 Central African Republic   144 144 +0.1%
Customer base (000) 291 302  
 Mauritania   48 51 +6.4%
 Burkina Faso   76 76 +0.4%
 Gabon   19 21 +12.6%
 Mali   149 155 +3.8%
Fixed-Line Broadband        
Customer base (10) (000) 99 107  
 Mauritania   11 13 +18.6%
 Burkina Faso   14 13 -0.2%
 Gabon   13 16 +23.4%
 Mali   61 64 +4.9%


(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 EBIT 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) Borrowings and other current and non-current liabilities less cash and cash equivalents, including cash held in escrow for bank loans.
(7) 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.
(8) 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.
(9) 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.
(10) The broadband customer base includes ADSL and FTTH (fiber optic) access and leased lines in Morocco, as well as the CDMA 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 ( and the French Financial Markets Authority (, which are also available in French on our website ( 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.

Investor Relations
Press Relations

Appendix 1: Change from adjusted financial indicators to published financial indicators

Adjusted earnings from operations, Group share of adjusted net income, and adjusted cash flow from operations, are not strictly accounting measures and should be considered as additional information. They are a better indicator of the Group's performance as they exclude non-recurring items.

  FY 2016 FY 2017
(in MAD million) Morocco International Group Morocco International Group
Adjusted EBITA 7,157 3,268 10,426 6,954 3,599 10,553
Non-recurring items:
Real estate proceeds


Restructuring costs -255   -255 -193 -49 -243
Published EBITA 6,902 3,565 10,468 6,760 3,550 10,310
Group share of adjusted net income     5,622     5,871
Non-recurring items:
Real estate proceeds

Restructuring costs    -176    -165
Group share of published net income     5,598     5,706
Adjusted CFFO 7,124 3,563 10,686 7,319 3,700 11,019
Non-recurring items:
Real estate proceeds


Restructuring costs     -579 -41 -620
License payments   -33 -33 -61 -578 -639
Published CFFO 7,124 3,847 10,970 6,679 3,081 9,761

Consolidated Statement of Financial Position

ASSETS (in MAD million) 12/31/2016 12/31/2017
Goodwill 8,360 8,695
Other intangible assets 7,378 7,485
Property, plant and equipment 29,981 32,090
Non-current financial assets 327 335
Deferred tax assets 276 273
Non-current assets 46,322 48,879
Inventories 324 296
Trade and other receivables 12,001 11,325
Short-term financial assets 156 119
Cash and cash equivalents 2,438 2,010
Assets available for sale 54 54
Current assets 14,974 13,803
TOTAL ASSETS 61,296 62,682
SHAREHOLDERS' EQUITY AND LIABILITIES (in MAD million) 12/31/2016 12/31/2017
Share capital 5,275 5,275
Retained earnings 4,604 4,854
Net earnings 5,598 5,706
Shareholders' equity attributable to equity holders of the parent 15,476 15,835
Non-controlling interests 3,822 3,916
Shareholders' equity 19,298 19,750
Non-current provisions 470 570
Loans and other long-term financial liabilities 4,666 4,200
Deferred tax liabilities 266 244
Other non-current liabilities 0 0
Non-current liabilities 5,402 5,014
Trade payables 24,626 25,627
Current tax liabilities 651 563
Current provisions 1,208 838
Loans and other short-term financial liabilities 10,110 10,890
Current liabilities 36,596 37,918


Consolidated statement of comprehensive income

(In MAD million) 2016 2017  
Revenues 35,252 34,963  
Cost of purchases -6,223 -5,937  
Payroll costs -3,260 -3,138  
Taxes -2,971 -2,838  
Other operating income (expenses) -5,486 -6,183  
Net depreciation, amortization, and provisions -6,845 -6,557  
Earnings from operations 10,468 10,310  
Other income and expenses from ordinary activities -47 -32  
Income from continuing operations 10,421 10,278  
Income from cash and cash equivalents 10 6  
Gross cost of financial debt -333 -497  
Net cost of financial debt -322 -491  
Other financial income and expense -124 -1  
Financial income -446 -491  
Income tax -3,347 -3,208  
Net earnings 6,628 6,579  
Translation differences resulting from foreign business activities -276 463  
Other income and expenses -23 -45  
Comprehensive net income 6,329 6,997  
Net earnings 6,628 6,579  
Attributable to equity holders of the parent 5,598 5,706  
Non-controlling interests 1,031 873  
Earnings per share 2016 2017  
 Net earnings attributable to equity holders of the parent (in MAD million) 5,598 5,706  
 Number of shares at December 31 879,095,340 879,095,340  
 Earnings per share (in MAD) 6.37 6.49  
 Diluted earnings per share (in MAD) 6.37 6.49  

Consolidated cash flow statement

(In MAD million) 2016 2017
Earnings from operations 10,468 10,310
Depreciation, amortization, and other restatements 6,548 6,582
Gross cash flows from operating activities 17,016 16,892
Other changes in net working capital -145 1 189
Net cash flows from operating activities before tax 16,871 18,081
Income tax paid -3,388 -3,170
Net cash flows from operating activities (a) 13,483 14,911
Purchase of property, plant and equipment and intangible assets -6,251 -8,370
Purchases of consolidated investments after acquired cash -66


Increase in financial assets -219 -319
Disposals of property, plant and equipment and intangible assets 414 0
Decrease in financial assets 22 622
Dividends received from non-consolidated equity investments 5 6
Net cash flows used in investing activities (b) -6,094 -8,061
Capital increase -122 0
Dividends paid to shareholders -5,590 -5,598
Dividends paid by subsidiaries to their non-controlling shareholders -1,210 -921
Changes in equity -6,922 -6,519
Proceeds from loans and increase in other long-term financial liabilities 307 1,681
Proceeds from borrowings and increase in other short-term financial liabilities 1,352 910
Payments on borrowings and decrease in other current financial liabilities -2,299 -2,545
Net interest paid -265 -784
Other cash items relating to financing activities -153 -9
Change in borrowings and other financial liabilities -1,058 -747
Net cash used in financing activities (d) -7,979 -7,266
Translation adjustment and other noncash items (g) -53 -13
Total cash flows (a)+(b)+(d)+(g) -644 -428
Cash and cash equivalents at the beginning of the period 3,082 2,438
Cash and cash equivalents at the end of the period 2,438 2,010

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Source: Maroc Telecom via Globenewswire

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