Maroc Telecom revenue dips by 2.5% in 2011

By Telecom Lead Team: Moroccan telecom major Maroc Telecom Group has posted a decline of 2.5 percent YoY at MAD 30,837 million for the
year 2011.

In the fourth quarter, Maroc Telecom Group revenues
declined by 3.9 percent at MAD 7,627 million against the same period a year

The company said that the decline is the result of lower
revenues in Morocco (-4.4 percent), in an operating environment of extreme
price cuts in the Mobile segment, compensated partly by solid growth in
International business (+8.9 percent).

In 2011, Maroc Telecom’s net income stood at MAD 8,123
million, a decline of 14.8 percent from 2010. Distributable earnings down by
12.7 percent at MAD 8,140 million against the earnings of 2010.

For the whole 2011, the company’s CAPEX declined by 11.4
percent at MAD 5793 million, against MAD 6535 million for the year 2010.

Maroc Telecom Group’s earnings from
operations (EBITA) in 2011 amounted to MAD  12,375 million, a decrease of 13.6% compared with 2010. This decline is the
result of lower EBITDA and higher amortization expenses from the substantial
investment program in Morocco and International.

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.

The company’s outgoing Mobile revenues were nearly
unchanged, with a price cut of 25 percent that lead to a 27 percent rise in

The company recorded 19 percent increase in the Internet
3G (x2) and ADSL customer bases.

This year, 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.

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