Maroc Telecom group's customer base reached nearly 62 million in the first quarter ended 31 March, up 4.8 percent year-on-year, driven by a 5.7 percent growth in the subsidiaries' mobile customer base and a 5.1 percent rise in the fixed-line and mobile customer base in Morocco. Consolidated revenues reached MAD 8.95 billion, slightly down by 0.5 percent from MAD 8.99 billion in the same period in 2018. At constant exchange rates, revenues were up 0.8 percent thanks to growth in mobile data of 18.5 percent in Morocco and 23.9 percent at subsidiaries.
EBITDA edged up to MAD 4.49 billion from MAD 4.48 billion in 2018, a rise of 3.7 percent at constant exchange rates. This change includes the impact of applying IFRS16. Excluding that, the group would have posted a 1.3 percent EBITDA improvement. The EBITDA margin rose to 52.0 percent from 49.8 percent, mainly due to the decline in mobile termination rates at subsidiaries and operating costs control. Consistent with the yearly forecast, capex excluding frequencies and licences amounted to MAD 860 million at the end of March, down 42.0 percent. They represent 9.6 percent of revenues.
The adjusted cash flow from operations amounted to MAD 2.77 billion, up 54.0 percent from MAD 1.80 billion in 2018, thanks to the increase in EBITDA and the optimisation of capex that began in 2018.
Activities in Morocco continued to grow and posted a 2.4 percent increase in revenues to MAD 5.38 billion, thanks to the combined increase in mobile and fixed-line revenues, which benefited from the data market fervor. EBITDA rose by 9.2 percent to MAD 3.03 billion thanks to the increase in revenues, decrease in operating costs and the impact of IFRS 16.
The EBITDA margin increased by 3.5 percentage points to 56.3 percent. Excluding IFRS 16, EBITDA would have increased by 7.4 percent, and the margin by 2.5 percentage points. Adjusted cash flow from operations in Morocco improved by 55.7 percent to MAD 1.77 billion, thanks to capex optimisation and good management of Working Capital Requirements (WCR).
International activities generated revenues of MAD 3.94 billion, down 1.7 percent at constant exchange rates, due to decreases in domestic mobile termination rates and incoming international traffic. Excluding the effect of falling mobile termination rates, the subsidiaries' revenues would be almost stable, with a slight decline of 0.4 percent over the same period in 2018.
International EBITDA decreased by 5.2 percent to MAD 1.62 billion, mainly because of new taxes and sector-related fees. Excluding this effect, EBITDA increased by 3.4 percent at constant exchange rates and represented a margin rate of 43.6 percent, thanks to the improvement in the gross margin rate (0.6 pt) and the control of operating costs.
