Maroc Telecom SaCSEMA: IAM

Maroc Telecom - PR FY2024 Results 14/02/2025

Feb 14, 2025 at 4:53 AM UTC · Issued by Maroc Telecom SA

PRESS RELEASE

Rabat, February 14, 2025

CONSOLIDATED RESULTS - YEAR ENDED DECEMBER 31, 2024

Strong operational and financial performance:

Group customer base up 4.5% to 79.3 million customers;
Group revenue growth of 1.2%*, driven by the +4.6%* performance of Moov Africa subsidiaries;
Growth in Group EBITDA of 0.3%* and continued high Group profitability of 52.3%*;
Fixed Data revenues in Morocco up 9.2%, driven by the 29% expansion of the FTTH customer base;
Group CAPEX (excluding frequencies and licenses) at 20.8% of 2024 revenues, in line with the target announced for the year;
Net debt under control at 1.1x EBITDA.

Proposed distribution of MAD 1.26 billion in dividends, i.e. MAD 1.43 per share.

Maroc Telecom Group's outlook for 2025, at constant scope and exchange rates:

Slight revenue growth;
High EBITDA level maintained;
CAPEX of approximately 20% of revenues, excluding frequencies and licenses.

Maroc Telecom Group reported growth in its results, exceeding its operational and financial targets, which once again demonstrate the resilience and sustainability of its fundamentals. This performance is mainly driven by the positive momentum of the Moov Africa subsidiaries and Very High-Speed Fixed Broadband in Morocco, which continue to support the Group's overall results.

The Group is maintaining an ambitious investment program focused on the development of Very High-Speed Fixed and Mobile broadband and the infrastructure required for new technological generations, both in its domestic market and internationally. At the same time, cost optimization efforts have helped maintaining a high level of profitability.

These efforts will continue in 2025, with the proactive adaptation of offers and services to more effectively address customer needs, the acceleration of the adoption of Artificial Intelligence technologies in internal processes to improve customer relationship quality in particular, and the continued support of digital transformation at the subsidiary level.

* Constant MAD/ouguiya/CFA franc exchange rate

Group adjusted* consolidated results

							Change at
(IFRS in MAD millions)		Q4 2023	Q4 2024			Change	constant
					exchange

							rates(1)
Revenues	9,107	9,238	1.4%	2.8%

Adjusted EBITDA	4,841	4,972	2.7%	3.9%
Margin (%)	53.2%	53.8%		0.7 pt		0.6 pt

Adjusted EBITA	2,996	3,253	8.6%	9.7%
Margin (%)	32.9%	35.2%		2.3 pt		2.2 pt

Adjusted net income -	1,566	1,632	4.2%	5.0%
Group share

Margin (%)	17.2%	17.7%		0.5 pt		0.4 pt

CAPEX(2)	2,116	5,904	179.0%	183.3%
Of which frequencies and	0	3,527
licenses

CAPEX/Revenues (excluding	23.2%	25.7%		2.5 pt		2.5 pt
frequencies and licenses)


Adjusted CFFO	3,037	3,172	4.5%	5.6%

Net debt	16,367	22,436	37.1%	38.2%
Net debt/EBITDA(3)		0.8x	1.1x

* Adjustments to financial indicators are set out in Appendix 1.

						Change at
	2023		2024		Change	constant
					exchange

						rates(1)
36,786	36,699	-0.2%		1.2%

19,369	19,197	-0.9%		0.3%
52.7%	52.3%		-0.3 pt		-0.5 pt

12,226	12,182	-0.4%		0.7%
33.2%	33.2%		-0.0 pt		-0.2 pt

6,195	6,132	-1.0%		-0.4%
16.8%	16.7%		-0.1 pt		-0.3 pt

7,838	11,164	42.4%		44.7%
0	3,549
21.3%	20.8%		-0.6 pt		-0.5 pt

10,213	10,941	7.1%		8.4%

16,367	22,436	37.1%		38.2%
	0.8x		1.1x

Customer base

At the end of 2024, the Maroc Telecom Group's customer base stands at 79.3 million customers, up 4.5% year-on-year, primarily driven by Moov Africa subsidiaries' customer base (+8.1%).

Revenues

The Maroc Telecom Group generated revenues(4) of MAD 36.7 billion in 2024, up 1.2%(1). This performance was driven by revenue growth from the Fixed-Line business in Morocco (+2.3%), boosted by increased Data usage and customer bases, combined with the one of Moov Africa subsidiaries (+4.6%(1)).

Earnings from operations before depreciation and amortization

At the end of 2024, the Maroc Telecom Group's consolidated adjusted earnings from operations before depreciation and amortization (EBITDA) amounted to MAD 19,197 million, up 0.3%(1) over the year thanks to growth in adjusted EBITDA of the Moov Africa subsidiaries (+2.9%(1)).

The adjusted EBITDA margin remained high at 52.3%, thanks to the Group's ongoing efforts to control operating costs, as well as the favorable impact of lower Mobile termination rates in the subsidiaries.

Earnings from operations

The Group's consolidated adjusted earnings from operations (EBITA)(5) for the full-year 2024

amounted to MAD 12,182 million, up 0.7%(1) vs. the same period in 2023, driven by the increase in EBITDA. The adjusted EBITA margin represented 33.2% of revenues, virtually unchanged over the year.

Net income Group share

The adjusted net income Group share reached 6,132 million dirhams as of December 2024, nearly stable compared to the previous year.

Investments

CAPEX(2) excluding frequencies and licenses represented 20.8% of revenues, in line with the target announced for the year.

Cash flow

Adjusted net cash flows from operations (CFFO)(6) increased by 8.4%(1) in 2024 versus 2023, reaching MAD 10,941 million.

At December 31, 2024, consolidated net debt(7) represented 1.1 times(3) Group full-year EBITDA.

Dividend

At the next General Meeting of Shareholders, the Maroc Telecom Supervisory Board will propose payment of a dividend of MAD 1.43 per share, representing a total payout of MAD 1.26 billion.

Highlight

In Morocco, signing of the seventh investment agreement between Maroc Telecom and the Government for the development of telecommunications in the Kingdom. Under this agreement, Maroc Telecom commits to implementing a 10 billion dirhams (excluding taxes) investment program over three years, aimed at developing and strengthening telecommunications infrastructure, deploying Very High-Speed Mobile and Fixed Broadband, and creating new jobs.

Outlook for 2025

Based on recent market developments and provided no new major exceptional event disrupts the Group's activity, Maroc Telecom forecasts the following outlook for 2025 at constant scope and exchange rates:

Slight revenue growth;
High EBITDA level maintained;
CAPEX of approximately 20% of revenues, excluding frequencies and licenses.

Group business review

The adjustments to the "Morocco" and "International" financial indicators are explained in Appendix 1.

Morocco

(IFRS in MAD millions)	Q4 2023		Q4 2024		Change
Revenues	4,794		4,716	-1.6%

Mobile	2,760		2,664	-3.5%
Services	2,647		2,522	-4.7%
Equipments and other revenues	113		141	24.5%

Fixed-Line	2,480		2,495	0.6%
Of which Fixed Data*	1,129		1,191	5.5%
Elimination and other income	-446		-443

Adjusted EBITDA	2,832		2,860	1.0%
Margin (%)	59.1%		60.7%		1.6 pt

Adjusted EBITA	1,969		2,034	3.3%
Margin (%)	41.1%		43.1%		2.0 pt

CAPEX(2)	916		859	-6.2%
Of which frequencies and licenses	0		0
CAPEX/Revenues (excluding frequencies	19.1%		18.2%		-0.9 pt
and licenses)


Adjusted CFFO	1,878		2,210	17.7%

Net debt	7,954		13,085	64.5%
Net debt/EBITDA(3)	0.6x	1.1x

* Fixed Data includes Internet, ADSL TV and Data services to companies.

2023	2024	Change
19,543	19,143	-2.0%

11,630	10,992	-5.5%
11,006	10,477	-4.8%
624	515	-17.4%

9,688	9,915	2.3%
4,296	4,691	9.2%
-1,775	-1,764

11,266	11,091	-1.6%
57.7%	57.9%	0.3 pt

7,819	7,785	-0.4%
40.0%	40.7%	0.7 pt

3,301	3,198	-3.1%
0	0
16.9%	16.7%	-0.2 pt

6,404	7,309	14.1%

7,954	13,085	64.5%
0.6x	1.1x

At the end of December 2024, activities in Morocco generated revenues of MAD 19,143 million, a decrease of 2.0% compared to 2023, due to a decline in Mobile activities (-5.5%), partially offset by the strong performance of Fixed Data (+9.2%).

Adjusted earnings from operations before depreciation and amortization (EBITDA) amounted to MAD 11,091 million in 2024, down 1.6% versus 2023. The adjusted EBITDA margin remains at a high level of 57.9% (+0.3 pt).

Adjusted earnings from operations (EBITA)(5) amounted to MAD 7,785 million, virtually unchanged year-on-year (-0.4%), and represented 40.7% of revenues (+0.7 pt).

In 2024, adjusted net cash flows from operations (CFFO)(6) rose 14.1% to MAD 7,309 million.

Mobile

	Unit	12/31/2023

Customer base(8)	(000)	19,767

Prepaid	(000)	17,269

Postpaid	(000)	2,499

Of which Internet 3G/4G+(9)	(000)	11,025

ARPU(10)	(MAD/month)	45.4

12/31/2024

19,148

16,525

2,623

10,963

43.3

Change

-3.1%

-4.3%

5.0%

-0.6%

-4.7%

At the end of 2024, the Mobile customer base(8) totaled 19.1 million customers, with a 5.0% increase in the postpaid customer base.

Mobile revenues decreased by 5.5% versus 2023 to MAD 10,992 million.

Blended ARPU(10) was MAD 43.3 in 2024, down 4.7% year-on-year.

Fixed-Line and Internet

	Unit	12/31/2023

Fixed-Line	(000)	1,781
Broadband access(11)	(000)	1,563

12/31/2024

1,650

1,450

Change

-7.4%

-7.3%

The Fixed-Line customer base stood at nearly 1.7 million lines at the end of 2024, down 7.4%.

The Broadband(11) customer base represented almost 1.5 million subscribers, with a substantial increase in the FTTH customer base (+29%).

Growth in the Fixed-Line & Internet businesses continued, generating revenues of MAD 9,915 million, up 2.3% versus 2023, mainly driven by growth in Fixed Data revenues (+9.2%).

Moov Africa subsidiaries Financial indicators

										Change at							Change at
(IFRS in MAD millions)		Q4 2023		Q4 2024		Change			constant			2023		2024	Change	constant
					exchange								exchange

										rates(1)							rates(1)
Revenues	4,617	4,796	3.9%	6.6%	18,381		18,706	1.8%		4.6%
Of which Mobile services	4,269	4,367	2.3%	5.0%	16,971		17,084	0.7%		3.5%

Adjusted EBITDA	2,009	2,112	5.1%	7.9%	8,102		8,106	0.0%		2.9%
Margin (%)	43.5%	44.0%		0.5 pt	0.5 pt	44.1%		43.3%			-0.7 pt	-0.7 pt

Adjusted EBITA	1,027	1,220	18.8%	22.2%	4,408		4,397	-0.3%		2.7%
Margin (%)	22.2%	25.4%		3.2 pt	3.2 pt	24.0%		23.5%			-0.5 pt	-0.4 pt

CAPEX(2)	1,200	5,045	320.3%	328.0%	4,537		7,966	75.6%		79.6%
Of which frequencies and	0	3,527						0		3,549
licenses

CAPEX/Revenues
(excluding frequencies	26.0%	31.6%		5.6 pt	5.5 pt	24.7%		23.6%			-1.1 pt	-1.1 pt
and licenses)
Adjusted CFFO	1,159	963	-16.9%	-13.8%	3,808		3,632	-4.6%		-1.3%

Net debt	8,479	10,826	27.7%	29.9%	8,479		10,826	27.7%		29.9%
Net debt/EBITDA(3)		1.0x		1.2x								1.0x	1.3x

Moov Africa subsidiaries' activities generated revenues of MAD 18,706 million for the 2024 financial year, up 4.6%(1). This is due in particular to growth in Mobile Data (+15.6%(1)), Fixed Internet (+21.1%(1)) and Mobile Money (+14.4%(1)). Excluding the reduction in call termination rates, subsidiaries' revenues rose 5.2%(1).

In 2024, adjusted earnings before depreciation and amortization (EBITDA) amounted to MAD 8,106 million, an increase of 2.9%(1), driven by higher revenues. The adjusted EBITDA margin was 43.3%, slightly down year-on-year.

Adjusted earnings from operations (EBITA)(5) amounted to MAD 4,397 million, up 2.7%(1).

Adjusted net cash flows from operations (CFFO)(6) fell 1.3%(1) to MAD 3,632 million.

Operating indicators

	Unit

Mobile
Customer base(8)	(000)
Mauritania
Burkina Faso
Gabon
Mali
Côte d'Ivoire
Benin
Togo
Niger
Central African Republic
Chad

Fixed-Line
Customer base	(000)
Mauritania
Burkina Faso
Gabon
Mali

Fixed Broadband
Customer base(11)	(000)
Mauritania
Burkina Faso
Gabon
Mali
Côte d'Ivoire


12/31/2023		12/31/2024		Change


52,233		56,376
2,242	2,507	11.8%
11,563	12,023	4.0%
1,516	1,616	6.6%
8,351	8,236	-1.4%
10,260	11,947	16.4%
5,747	5,830	1.5%
2,862	3,133	9.5%
3,238	3,875	19.7%
253	256	1.3%
6,201	6,953	12.1%


391		407
29	15	-48.7%
75	69	-7.8%
55	67	23.0%
233	256	9.9%


203		303
22	39	77.9%
25	50	97.5%
51	65	26.0%
105	116	11.0%
-	33		NS

Notes:

Constant MAD/ouguiya/CFA franc exchange rate.
Capital expenditure corresponds to acquisitions of property, plant and equipment and intangible assets recognized during the period.
The net debt/EBITDA ratio excludes the impact of IFRS 16, and takes into account the annualization of EBITDA.
Maroc Telecom consolidates in its financial statements Casanet and the Moov Africa subsidiaries in Mauritania, Burkina
Faso, Gabon, Mali, Côte d'Ivoire, Benin, Togo, Niger, Central African Republic and Chad.
EBITA corresponds to operating profit before amortization of intangible assets related to business combinations, impairment of goodwill and other intangible assets related to business combinations and other income and expenses related to financial investment transactions and transactions with shareholders (except when they are recognized directly in equity).
CFFO comprises the net cash flows from operating activities before taxes as presented in the cash flow statement, as well as dividends received from associates and non-consolidated equity interests. It also includes net capital expenditure, which corresponds to net cash outflows on acquisitions and disposals of property, plant and equipment and intangible assets.
Borrowings and other current and non-current liabilities less cash (and cash equivalents) including cash blocked for bank loans.
The active customer base consists of prepaid customers who have made or received a voice call (excluding calls from the public telecommunication network operator concerned or its Customer Relations Centers) or sent an SMS/MMS or who have used the Data services (excluding exchanges of technical data with the public telecommunication network operator concerned) in the past three months, and non-terminated postpaid customers.
The active customer base of the 3G and 4G+ Mobile Internet includes holders of a postpaid subscription contract (whether or not coupled with a voice offer) and holders of a prepaid subscription to the Internet service who have carried out at least one recharge during the past three months or whose credit is valid and who have used the service during this period.
ARPU (average revenues per user) is defined as revenues generated by incoming and outgoing calls and data services net of promotions, excluding roaming and equipment sales, divided by the average number of users in the period. In this instance, blended ARPU covers both the prepaid and postpaid segments.
The Broadband customer base includes ADSL, FTTH and leased connections and also includes CDMA in Mali.

Important Warning:

Forward-lookingstatements. This press release contains forward-looking statements and items relating to the financial position, results of operations, strategy and outlook of Maroc Telecom and the impacts of certain operations. Although Maroc Telecom believes that these forward- looking statements are based on reasonable assumptions, they do not constitute guarantees as to the future performance of the company. Actual results may be very different from forward-looking statements due to a number of known or unknown risks and uncertainties, most of which are beyond our control, including the risks described in public documents filed by Maroc Telecom with the Moroccan Capital Market Authority (www.ammc.ma) and the French Financial Markets Authority (www.amf-france.org), also available in French on our website (www.iam.ma). This press release contains forward-looking information that can only be assessed on the day it is distributed. Maroc Telecom makes no commitment to supplement, update or modify these forward-looking statements due to new information, a future event or any other reason, subject to applicable

regulations, in particular Article 2.19 et seq. of the circular of the Moroccan Capital Market Authority and Article 223-1 et seq. of the General Regulation of the French Financial Markets Authority.

Maroc Telecom is a global telecommunications operator in Morocco, a leader in all its business segments, Fixed-Line, Mobile and Internet. It has expanded internationally and is now present in eleven African countries. Maroc Telecom is listed on both the Casablanca and Paris exchanges, and its majority shareholders are the Société de Participation dans les Télécommunications (SPT*) (53%) and the Kingdom of Morocco (22%).

* SPT is a Moroccan company controlled by Etisalat.

	Contacts

Investor Relations	Press Relations
relations.investisseurs@iam.ma	relations.presse@iam.ma

Appendix 1: Relationship between adjusted financial indicators and published financial indicators

Adjusted EBITDA, adjusted EBITA, adjusted net income Group share and adjusted CFFO are not strictly accounting indicators, and should be considered as additional information. They better illustrate the Group's performance by excluding exceptional items.

20232024

(in MAD millions)		Morocco		Subsidiaries			Group		Morocco		Subsidiaries			Group

Adjusted EBITDA	11,266		8,102	19,369		11,091		8,106	19,197
Published EBITDA	11,266		8,102	19,369		11,091		8,106	19,197

Adjusted EBITA	7,819		4,408	12,226		7,785		4,397	12,182
Wana Corporate dispute	-500				-500		-6,039			-6,039
Licenses amortization										-81		-81
Published EBITA	7,319		4,408	11,726		1,746		4,316	6,062

Adjusted net income - Group share						6,195						6,132
Increase in corporate tax rate						-87						-153
Earthquake fund donation						-481
Wana Corporate dispute						-345						-4,146
Licenses amortization													-31
Published net income - Group share						5,283						1,801

Adjusted CFFO	6,404		3,808	10,213		7,309		3,632	10,941
Payment of licenses										-1,840		-1,840
Published CFFO	6,404		3,808	10,213		7,309		1,792	9,101

Appendix 2: Impact of the adoption of IFRS 16

At the end of December 2024, the impacts of the application of IFRS 16 on the main indicators of the Maroc Telecom Group were as follows:

20232024

(in MAD millions)		Morocco		Subsidiaries		Group		Morocco	Subsidiaries		Group

Adjusted EBITDA	273		314	587	277		305	583
Adjusted EBITA	19		49	69	11		44	55
Adjusted net income - Group share					-13					-22

Adjusted CFFO	273		314	587	277		305	583
Net debt	808		818	1,626	883		843	1,725