(Ecofin Agency) - In Morocco, the debt of telecom group Itissalat Al Maghrib, mostly known as Maroc Telecom, has increased by about 4.7 billion dirhams ($491.6 million) over the first half of 2017, ended on June 30. The rise is mainly due to bank borrowings (repayable in less than 12 months) having exceeded four billion dirhams.

As investments slumped by a little more than 20% over the period reviewed, the group says the major part of the debt was used to finance restructuring and licenses, in addition to paying part of dividends, which amounted to six billion dirhams. This in a bid to reassure investors as its share on the local stock exchange fell by 3.8% since the beginning of the year, representing a plus-value of 0.66% only for investors present since early 2012.

The debt’s surge is also to be attributed to a lower turnover over the first six months of this year. Indeed the figure stood at 17 billion dirhams which is 2.8% less than what it generated in the same period in 2016. Besides, Maroc Telecom still struggles with liquidity shortage, in a context where its working capital stands at nearly 5.1 billion dirham.

Finally, the firm’s net cash-flow was 4.5 billion dirhams, down 13.5% from that recorded in H1 2016. Looking at its current liabilities, the group does not foresee any improvement in its turnover before the end of the ongoing fiscal year. Quite a realistic vision one must admit.

Idriss Linge