2011 CONSOLIDATED RESULTS
Results in line with expectations:
· Group customer base: +12% year on year, to 29 million customers
· In Morocco:
- outgoing Mobile revenues nearly unchanged, with a price cut of 25% that lead to a 27% rise in usage;
- sharp expansion in postpaid Mobile (+25%), Internet 3G (x2) and ADSL (+19%) customer bases.
· International business:
- revenue growth of 10.1% at constant rate, with customer base increasing by 39%;
- excellent performance in Mali, with a 35% rise in revenue.
· Consolidated results1:
· revenues down slightly, by 2.5%, to MAD 30.8 billion;
· earnings from operations: MAD 12.4 billion, representing an operating margin of 40.1%;
· cash flow from operations (CFFO): MAD 11.6 billion, a decline of 9.3%.
· Proposed dividend payment of 100% of 2011 earnings, or MAD 9.26 per share, representing a yield of 6.7%*.
Outlook for 2012:
- Operating margin around 38%
- Cash flow from operations (CFFO) stable at MAD 11.5 billion
On the occasion of the publication of this press release, Abdeslam Ahizoune, Chairman of the Management Board, stated: "In 2011, in order to consolidate its mobile customer base in Morocco and to preserve market leadership, Maroc Telecom Group focused on lower prices, innovation, and network quality. Despite the unfavorable regulatory environment and intense competition, our annual results met Group objectives. In 2012, Maroc Telecom Group intends to lower prices further, thereby increasing consumption, and to sustain high profit levels by limiting costs.
Group consolidated results
| IFRS in MAD millions | 2010(1) | 2011 | % change | % change comparable basis(3) |
| Revenue | 31,617 | 30,837 | -2.5% | -2.3% |
| EBITDA | 18,605 | 16,996 | -8.6% | -8.6% |
| Margin (%) | 58.8% | 55.1% | -3.7 pts | -3.9 pts |
| EBITA | 14,327 | 12,375 | -13.6% | -13.5% |
| Margin (%) | 45.3% | 40.1% | -5.2 pts | -5.1 pts |
| Net Income - Groupe Share | 9,532 | 8,123 | -14.8% | -14.8% |
| Margin (%) | 30.1% | 26.3% | -3.8 pts | -3.8 pts |
| CAPEX | 6,535 | 5,793 | -11.4% | |
| CAPEX / Revenue | 20.7% | 18.8% | -1.9 pts | |
| CFFO | 12,836 | 11,647 | -9.3% | |
| Net Debt | 4,319 | 6,862 | 58.9% | |
| Net Debt / EBITDA | 0.2 x | 0.4 x | +0.2 x |
· Revenues1
In 2011, Maroc Telecom Group generated consolidated revenues2 of MAD 30,837 million,
a decline of 2.5% year on year and 2.3% like for like3. This decline is the result of lower revenues in Morocco (-4.4%), in an operating environment of extreme price cuts in the Mobile segment, compensated partly by solid growth in International business (+8.9%).
In the fourth quarter, Maroc Telecom Group revenues declined by 3.9%, compared with the same period a year earlier, to MAD 7,627 million.
The Group's customer base showed solid momentum, with growth of 12.2%, to just under
29 million. This growth was due mainly to International business, whose customer base grew
by 39.2% year on year.
· Earnings from operations before depreciation and amortization 1
At December 31, 2011, Maroc Telecom Group EBITDA amounted to MAD 16,996 million, a decline of 8.6% from a year earlier (-8.6% like for like). This performance was the result of a decrease of 10.2% of the EBITDA in Morocco, partially compensated by the slight increase (2.1%; +2.8% like for like) in the EBITDA of the International business. The EBITDA margin nonetheless remains high, at 55.1%.
In the fourth quarter, EBITDA amounted to MAD 4,119 million, a decline of 11.4% (-11.4% like for like) compared with 2010.
· Earnings from operations1
Maroc Telecom Group's earnings from operations4 (EBITA) in 2011 amounted to MAD
12,375 million, a decrease of 13.6% (-13.6% like for like) compared with 2010. This decline is the result of lower EBITDA and higher amortization expenses from the substantial investment program in Morocco and International.
· Net income1
Maroc Telecom Group's net income (Group share) for 2011 came to MAD 8,123 million, a decline of 14.8% from 2010 (-14.8% like for like).
Distributable earnings for the same period amounted to MAD 8,140 million, down by 12.7% compared with 2010.
· Cash-flow
At December 31, 2011, cash flow from operations (CFFO) stood at MAD 11,647 million, a decline of 9.3% compared with December 31, 2010. This performance was due mainly to a decline
in EBITDA, despite carefully controlled capital expenditures that decreased by 11.4%,
to MAD 5.8 billion.
At December 31, 2011, Maroc Telecom Group's consolidated net debt5 amounted to
MAD 6.9 billion, compared with MAD 4.3 billion at December 31, 2010, representing 0.4 times
the Group's annual EBITDA.
· Dividend
The Supervisory Board of Maroc Telecom will propose to the annual shareholders' meeting, to be held on April 24, 2012, the payment of an ordinary dividend of MAD 9.26 per share, representing a total amount of MAD 8.14 billion, corresponding to 100% of distributable earnings from 2011. The dividend will be made available for payment on May 31, 2012.
· Outlook for 2012
On the basis of recent market developments, and barring any unforeseen major disruptions to
the Group's activity, Maroc Telecom expects an operating margin (EBITA) around 38% and stable cash flow from operations (CFFO6) at MAD 11.5 billion, despite the persistently intense competitive environment.
[1]- Data for the year 2010 were adjusted after the identification in the financial statements of a material misstatement concerning distributor commissions paid to Onatel. This restatement lowered revenues by MAD 37.7 million, while earnings from operations before depreciation and amortization, operating income, and net income were also affected negatively, by MAD 7.4 million, compared with data published for the year 2010.
2- At December 31, 2011, Maroc Telecom consolidated Mauritel, Onatel, Gabon Telecom, Sotelma, and Casanet in its financial statements. Mobisud Belgique has not been consolidated in Maroc Telecom Group financial statements since July 1, 2010.
3- The comparable basis illustrates the effect of the Mobisud Belgique disposal, as if it had occurred on January 1, 2010, with constant exchange rates (MAD / Mauritanian Ouguiya / CFA Franc.
4- Earnings from operations before amortization of intangible assets.
5- Borrowings and other current and noncurrent liabilities, less cash and cash equivalents, including cash held in escrow for bank borrowings.
6- The CFFO includes net cash provided by operating activities, before income tax paid, as presented in the Statement of Cash Flows, as well as dividends received from equity affiliates and unconsolidated companies. It also includes capital expenditures, net that relates to cash used for capital expenditures, net of proceeds from sales of property, plant and equipment, and intangible assets.
