Over the past two years, African subsidiaries of Maroc Telecom (Itissalat al Maghrib) have become more significant. Indeed, in 2013, these subsidiaries generated a global turnover of 7.75 billion dirham, about 27.5% of Maroc Telecom’s overall turnover (28.55 billion dirham). In 2015, the subsidiaries made 14 billion dirham, thus 41% of overall turnover, 34.14 billion dirham ($3.48 billion).

Recent results show that Morocco’s share in the firm’s global turnover kept decreasing (slightly) over the period considered, slumping from 21.2 billion dirham in 2013 to 21 billion dirham in 2015. Asides its significant contribution to Maroc Telecom’s turnover, Africa also raised its share in the company’s operating result. In fact, with 5.59 billion dirham in 2015, the region now accounts to 33% of this index, against 23% in 2013.

The new performances of Africa in Maroc Telecom’s results can be attributed to its old subsidiaries (+7.2% at constant exchange rate) and newly acquired ones (+6.8% at constant exchange rate). “During the fourth quarter, the group’s revenues, at the international level, surged 8.1% at stable exchange rate and perimeter, and benefited from the rapid growth of the new subsidiaries (+12.5%), namely those of Cote d’Ivoire and Niger,” the operator said.

However, the growth that the group’s African subsidiaries experienced is not without a price. Indeed, for their acquisition only, Maroc Telecom had to take a loan of 7.9 billion dirham from its majority shareholder Etissalat, and other banks. In addition to this, the group assumed the financial debts of the new subsidiaries (1.4 billion dirham) as well as their exploitation debts (4.4 billion dirham).

Globally, this entire African dynamic impacted the group’s financial results. Despite turnover growing, the firm’s net result decreased 4.43% to 5.59 billion dirham ($514 million). The tight surveillance of revenues, paired with the control of charges, mostly financial, will be at the center of the management strategy in the mid-term.

Investors from the various African markets where the group is present seem reassured. On Abidjan’s BRVM (Bourse Régionale des Valeurs Mobilières), its subsidiary ONATEL (51%), recorded $14 million of transactions in two days, following announce regarding interesting benefits. On the Casablanca stock market where it is directly listed, the group’s share grew 2.4% on February 16 and cumulated a 7% increase since the beginning of the year, better than the market’s main index (MASI) which grew only 2.6% over the same period.