Casablanca – Maroc Telecom, Morocco’s leading telecommunications operator, has reported a stable financial performance for 2024, despite facing a significant financial burden from its legal settlement with Wana Corporate. The company managed to maintain growth in both revenue and subscriber base, solidifying its position as a key player in the region.

Revenue growth and strong subscriber base

Maroc Telecom’s total revenue increased by 1.2%, reaching approximately $3.78 billion, supported by strong demand for fixed-line broadband and the continued expansion of its African subsidiaries under the Moov Africa brand. The company’s total subscriber base grew by 4.5% to 79.3 million, driven largely by a 8.1% increase in customers from its African operations.

Domestically, fixed-line services in Morocco saw a 2.3% growth in revenue, fueled by rising demand for high-speed internet. The company’s fiber-optic (FTTH) services grew by 29%, reflecting a strong market shift towards faster and more reliable broadband connections. Fixed internet revenue alone jumped 9.2%, demonstrating the growing reliance on data-driven services.

Challenges and legal settlement impact

While Maroc Telecom sustained growth, it was weighed down by the high cost of resolving its legal dispute with Wana Corporate, which had a notable impact on its overall profitability. The company’s net profit dropped significantly by 66%, falling from $536 million in 2023 to $185 million in 2024. However, when adjusted for non-recurring legal costs, the company’s net profit remained stable at approximately $629 million, reflecting its actual operational performance.

Profitability and operational efficiency

Despite the legal settlement, Maroc Telecom maintained a strong EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which rose by 0.3% to reach $1.98 billion, with an EBITDA margin of 52.3%. This stability was largely due to cost-control initiatives and strong performance from the Moov Africa subsidiaries, which saw a 2.9% rise in EBITDA.

On the operational level, the company’s adjusted operating profit grew by 0.7% to $1.26 billion, with an operating margin of 33.2%. Additionally, adjusted operating cash flow surged by 8.4%, reaching $1.12 billion, strengthening Maroc Telecom’s ability to finance future growth and sustain dividend payouts.

Investments in infrastructure and digital expansion

Maroc Telecom continued its investment strategy, allocating approximately 20.8% of its revenue ($787 million) to infrastructure development, excluding spectrum and license costs. The company focused on upgrading its next-generation fixed and mobile networks, ensuring it remains at the forefront of the telecommunications industry in Morocco and across Africa.

A major area of investment was fiber-optic expansion, which experienced significant adoption. The company also invested in mobile network enhancements to support growing data consumption and improve service quality.

Performance in African markets

Internationally, Moov Africa continued to show strong growth, with revenues increasing by 4.6% to $1.93 billion. This growth was primarily driven by a 15.6% rise in mobile data services, a 21.1% increase in fixed internet revenues, and a 14.4% surge in Mobile Money transactions, highlighting the region’s digital transformation.

Domestic market trends

While Maroc Telecom’s fixed-line services in Morocco performed well, its mobile segment faced challenges, with revenue declining by 5.5% due to a 4.7% drop in Average Revenue Per User (ARPU) to $4.46 per month. However, the company’s strong growth in fixed broadband and fiber-optic services helped offset the decline in mobile revenue.

Dividend distribution and future outlook

Despite the legal settlement’s impact, Maroc Telecom maintained its commitment to shareholders, proposing a dividend payout of $130 million ($0.15 per share). The company remains optimistic about modest revenue growth in 2025, with a continued focus on profitability and infrastructure development.

Looking ahead, Maroc Telecom has outlined an ambitious three-year investment plan worth $1.03 billion, in collaboration with the Moroccan government. This initiative aims to further expand digital connectivity and enhance high-speed broadband access across its markets.

Maroc Telecom’s 2024 results underscore its ability to withstand economic pressures and legal challenges while maintaining growth. With strong African expansion, continued investments in digital infrastructure, and a stable financial outlook, the company is well-positioned to navigate the evolving telecommunications landscape and sustain its leadership in the sector.