Maroc Telecom revenues decline

14 November 2011

Profits fall due to increased competition

Maroc Telecom, one of the largest listed companies on the Casablanca Bourse saw its third quarter revenues decline by 4.2 per cent to MD7.9bn ($962m) compared to the same period last year.

Net profit fell 11.1 per cent to MD3.4bn. The group’s customer base grew 10.9 per cent to 27.8 million customers.

Despite a rise in the group’s subscriber numbers, the decline in revenues stems from an increasingly competitive market, which has stimulated a price war between the country’s operators.

The average revenue per user (ARPU) declined by 7.1 per cent in the first nine-months of the year to MD88 when compared to the same period in 2010.

“Ongoing marketing efforts and price cuts have strongly stimulated our customers’ consumption and have boosted growth in the mobile, third-generation ((3G) internet and broadband customer bases. This growth justifies the pursuit of large capital expenditures for networks in Morocco, as well as in sub-Saharan Africa, where the growth outlook remains solid,” says Abdeslam Ahizoune, chairman of Maroc Telecom.

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