Maroc Telecom records 0.4% drop in profit as subscribers grew to 79.3 million

Morocco’s largest telecom operator, Maroc Telecom, has reported that its profit declined to $616 million (6.14 billion dirhams), representing a 0.4 per cent drop. This comes amidst the company’s investment push in high-speed fixed broadband.

Alongside the profit drop, Maroc Telecom said on Friday that its consolidated revenue rose by 1.2 per cent to 36.7 billion dirhams which was driven by growth in its various African subsidiaries which saw a 9.2 per cent increase in fixed data services in Morocco.

The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at 19.2 billion dirhams, reflecting a modest increase of 0.3 per cent, with the company maintaining a high margin of 52.3 per cent.

Maroc Telecom continues to prioritize substantial investment, with expenditures amounting to 20.8 per cent of revenue, aligning with its strategic goals. A notable development is the signing of a new investment agreement with the Moroccan government, committing 10 billion dirhams over three years to enhance telecommunications infrastructure.

The telecom operator said that its customer base surged by 4.5 per cent to 79.3 million. It also disclosed that it would pay a dividend of 1.43 dirhams per share, totalling 1.26 billion dirhams.

Looking ahead to 2025, the company forecasts slight revenue growth and sustained high profitability. While it is set to advance its digital transformation and integrate artificial intelligence into its services, Maroc Telecom pledged its commitment to innovation and development.

Also Read: Cameroon’s Camtel to challenge MTN, set for state-owned mobile finance service in 2025.

More on Maroc Telecom’s financial performance

At the end of September 2024, Maroc Telecom reported a 6.1 per cent increase in its customer base, reaching 79.7 million subscribers by that time.

In its original base Morocco, the telecom giant’s mobile customer base grew to nearly 19.9 million, reflecting strong demand for postpaid services, which recorded a 3.6 per cent year-over-year increase.

The rise is fueled by the operator’s expanding postpaid mobile services and fibre-optic internet offerings, bolstering both domestic and international customer acquisition.

On the international front, Maroc Telecom, operating under the Moov Africa brand, reported a total of 56 million mobile subscribers across ten African countries. Also, its largest international markets include Burkina Faso with nearly 12 million users, Côte d’Ivoire with 11.7 million, and Mali with 8.4 million.

Smaller markets such as Togo, Mauritania, and Gabon contributed to Moov Africa’s expansion, with subscriber growth in each country bringing a robust demand across the region.

In addition, fixed-line and broadband services outside Morocco saw continued adoption, with Mali accounting for 253,000 fixed-line subscribers and contributing significantly to the operator’s 400,000-strong fixed-line customer base across Africa. 

Fixed broadband also grew, totalling 255,000 customers, as demand for internet access accelerates in the region.

Among key African markets, Burkina Faso and Côte d’Ivoire experienced particularly strong performances, underlining the importance of these markets in Maroc Telecom’s long-term growth strategy.

Maroc Telecom, established in 1998, is Morocco’s main and also largest telecommunications company. It is a semi-public company where Morocco’s government owns 22 per cent of the company while the Etisalat Group owns 53 per cent. French multimedia firm Vivendi owns the rest.

In 2016, Maroc introduced fibre optic internet into the country with speeds up to 200Mbps. Also, the company offers landline phone services, mobile, fibre internet, ADSL, and 4G+.

Besides Morocco, it operates subsidiaries in Benin, Burkina Faso, the Central African Republic, Chad, Gabon, Ivory Coast, Mali, Mauritania, Niger and Togo. The company was listed on the Euronext and Casablanca stock exchanges in 2004 and, since 2014, has been majority-owned by Etisalat, the Emirati telecom giant.

Today, Maroc Telecom generates approximately 40 per cent of its revenue outside Morocco, highlighting the success of its internationalization strategy and its pivotal role in advancing digital connectivity across francophone Africa.