Maroc Telecom, Morocco’s leading telecommunications provider, reported a 5.9% decline in first-quarter profit for 2025, with shareholders amounting to 1.43 billion dirhams ($154 million) for the January-March period. The company, listed on both the Casablanca Stock Exchange and Euronext Paris, attributed the profit drop to a 2% year-on-year decrease in consolidated revenue, which fell to 8.8 billion dirhams.
This downturn was primarily driven by a 3.7% revenue drop in its core Moroccan market, though growth in its African subsidiaries, branded as Moov Africa, provided some offset with a 4.1% revenue increase.
Despite the financial challenges, Maroc Telecom reported a robust 3.6% growth in its customer base, reaching nearly 80 million subscribers by the end of March 2025. This expansion was largely fuelled by a 6.5% increase in subscribers at its Moov Africa subsidiaries, which operate in ten African countries: Benin, Burkina Faso, Central African Republic, Chad, Gabon, Ivory Coast, Mali, Mauritania, Niger, and Togo.
The company highlighted its strategic investments in broadband and mobile payment services across these markets as key drivers of this growth.
Maroc Telecom, 53% owned by the United Arab Emirates’ Etisalat (e&) and 22% by the Moroccan state, has been navigating a competitive domestic market while leveraging its African operations to bolster revenue. At least 40% of its revenue is generated outside Morocco, underscoring the success of its internationalisation strategy. Strong performances in Burkina Faso and Côte d’Ivoire, coupled with rising demand for mobile data and diverse service offerings, have solidified the importance of these markets to the company’s long-term growth.
The profit decline comes amid significant investments in infrastructure, particularly in high-speed fixed broadband, which the company has prioritised to meet growing digital demands.
Maroc Telecom’s mobile customer base in Morocco surged to 19.9m
Maroc Telecom’s mobile customer base in Morocco grew to 19.9 million, driven by a 3.6% increase in postpaid services, while its fixed-line base reached 1.7 million, with fibre-to-the-home (FTTH) subscriptions surging by 34% year over year. These efforts align with Morocco’s broader digital transformation goals, as outlined in the Maroc Digital 2030 strategy, which aims to expand mobile networks and internet access, especially in rural areas.
A stand development for the telecom giant in 2025 is its expanded partnership with competitor Inwi, Morocco’s third-largest telecom operator, to accelerate the deployment of 5G and fibre-optic networks.
Announced in March, the agreement involves a joint investment of 4.4 billion dirhams ($460 million) over three years to establish two equally owned joint ventures: FiberCo and TowerCo. FiberCo aims to expand fibre-optic networks to reach 1 million connections within two years and 3 million within five, while TowerCo will oversee the construction of 2,000 new towers in three years and 6,000 in ten to support 5G rollout. The deal, pending approval from Morocco’s National Telecommunications Regulatory Agency (ANRT), is seen as a strategic move to enhance market stability and position Morocco as a regional digital hub.
The partnership also resolves a prior legal dispute, with Maroc Telecom agreeing to pay Inwi 4.38 billion dirhams ($455 million) to settle allegations of unfair competition practices, down from an initial court-ordered 6.38 billion dirhams. This resolution allows both operators to focus on collaborative efforts to meet Morocco’s ambitious 5G coverage targets, which aim to reach 25% of the population by 2026 and 70% by 2030, in time for the country’s co-hosting of the World Cup with Spain and Portugal.
Maroc Telecom’s African subsidiaries continue to be a bright spot, with revenue reaching 13.91 billion dirhams ($1.4 billion) in the first nine months of 2024, driven by high data demand. However, challenges in Morocco, including a competitive market and regulatory scrutiny, have weighed on performance.
In 2024, the company faced a $630 million fine for unfair competition, following a 2020 penalty of 3.3 billion dirhams for impeding competitors’ access to network infrastructure. These setbacks highlight the ongoing tensions in Morocco’s telecom sector, where Maroc Telecom holds a 38% market share, ahead of Orange Maroc (33.2%) and Inwi (23.9%).
Looking ahead, Maroc Telecom is focused on strengthening its digital infrastructure and supporting Morocco’s digital economy.
Jassem Alzaabi, Chairman of e&, emphasised the company’s commitment to long-term investment, stating, “This strategic collaboration with Inwi reflects institutional maturity and underscores our dedication to building a comprehensive digital model that supports Morocco’s transformation.”
The company’s efforts to expand 5G, enhance broadband access, and grow its African footprint position it to navigate domestic challenges while capitalising on regional opportunities.
With a proposed dividend of 1.43 dirhams per share, totalling 1.26 billion dirhams, the company aims to maintain shareholder confidence despite the profit dip.
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