Maroc Telecom Reports Profit Decline Amidst Growing Subscriber Base

Maroc Telecom, Morocco’s largest telecommunications provider, has reported a slight dip in profit despite an expanding customer base and increasing revenue. The company’s latest financial report revealed a net profit of $616 million (6.14 billion dirhams), reflecting a 0.4 percent decline. The telecom behemoth is still making significant investments in high-speed fixed broadband infrastructure.

Steady Revenue Growth Despite Profit Dip

According to Morocco World News, despite the drop in profit, Maroc Telecom experienced a 1.2 percent increase in consolidated revenue, reaching 36.7 billion dirhams. The rise was largely driven by the performance of its African subsidiaries, which saw a 9.2 percent surge in fixed data services within Morocco.

The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at 19.2 billion dirhams, marking a modest 0.3 percent increase. The company maintained an impressive EBITDA margin of 52.3 percent, reflecting strong financial health.

Investment and Expansion Strategy

Maroc Telecom remains committed to substantial investments in infrastructure, allocating 20.8 percent of its revenue to capital expenditures. A notable step in this direction is a newly signed agreement with the Moroccan government, securing a 10 billion dirham investment over three years to enhance telecommunications networks.

Alongside these investments, the telecom operator has witnessed a 4.5 percent rise in its subscriber base, now standing at 79.3 million users. It has also announced plans to distribute a dividend of 1.43 dirhams per share, amounting to a total payout of 1.26 billion dirhams.

Strong Presence Across Africa

Maroc Telecom continues to strengthen its footprint across Africa under the Moov Africa brand. By the end of September 2024, the company had recorded a 6.1 percent increase in its total subscriber count, reaching 79.7 million.

In Morocco, its mobile customer base grew to nearly 19.9 million, with postpaid services experiencing a 3.6 percent year-over-year increase. Meanwhile, on the international front, Moov Africa operates in ten African nations, with Burkina Faso (12 million users), Côte d’Ivoire (11.7 million), and Mali (8.4 million) ranking as its largest markets.

Beyond mobile services, the company continues to expand its fixed-line and broadband operations. Mali, for instance, contributes significantly to this growth with 253,000 fixed-line subscribers, adding to the 400,000 fixed-line customers Maroc Telecom serves across Africa. The demand for fixed broadband is also on the rise, with the company now catering to 255,000 customers in the sector