In 2023, Moov Africa Burkina Faso (Onatel) reported a net income of US$33.3 million, down 14% from the previous year’s US$37 million. The company, a subsidiary of Maroc Telecom, cited various factors that contributed to the decline in its annual report. These included vandalism at sites located in insecure zones, fierce competition, and a decrease in prepaid voice services due to the growing use of over-the-top (OTT) services such as Facebook and WhatsApp.
The report also revealed a 4% drop in turnover, from US$677 million in 2022 to US$228 million. Moov Africa’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) fell by 6% to US$108 million, although it maintained an EBITDA margin rate of 47.7%.
Despite these challenges, Moov Africa saw a 5% increase in its customer base, reaching 11.7 million by the end of 2023. The company’s internet subscriber base (both fixed and mobile) also saw an 11% increase, from around 6.5 million to 7.1 million. Mobile internet revenue grew by 15% year-over-year, while fibre optic revenues more than tripled.
For 2024, Moov Africa plans to continue investing in efforts to modernize and expand its mobile, internet, and high-speed network. The company’s strategy includes rehabilitating vandalized sites, diversifying its offer portfolio, restructuring and digitizing its sales force, boosting mobile activity as a growth lever, and enhancing visibility. These initiatives are expected to not only improve the company’s financial performance but also to strengthen its position in Burkina Faso’s telecom market.
According to data from the Electronic Communications and Postal Regulatory Authority (ARCEP), Moov Africa held a market share of 42.91% in the third quarter of 2023, with Orange and Telecel controlling 45.85% and 11.24% of the national mobile subscriber base, respectively.
Source link : https://broadcastmediaafrica.com/2024/04/15/moov-africa-experiences-declining-profits-and-revenue-in-burkina-faso/
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Publish date : 2024-04-15 07:00:00
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