Maroc Telecom 1Q Ebitda -5.7%, Keeps Fiscal Year Outlook

Maroc Telecom (IAM.CL) Friday posted a 5.7% drop in earnings before interest, tax, depreciation and amortization, or Ebitda, for the first quarter, mainly due to slow revenue growth in Morocco.

MAIN FACTS:

- 1Q consolidated Ebitda amounted to MAD4.04 billion, down 5.7% from a year earlier, or 5.5% on a comparable basis.

- 1Q revenue grew 1.2% to MAD7.5 billion.

- The group's customer base stood at 26.2 million at March 31, up 17% from a year earlier. This expansion reflects continuing growth in the Mobile customer base in Morocco (+6.9%) and strong marketing momentum in the subsidiaries, where the Mobile customer base grew by 56%.

- Consolidated earnings from operations were down 7.2% from a year earlier, or down 7.0% on a comparable basis, to MAD2.97 billion.

- Consolidated operating margin remained at a high level (39.5%), despite ongoing major investments in networks and systems.

- 2011 outlook is unchanged: moderate growth in revenue and profitability to be maintained at a high level.

- "Despite the rise in competition, Maroc Telecom group continues to increase its revenues, protect its leader position, and maintain high margins through significant investments for quality, innovation, and customer satisfaction. The company primary objective is to satisfy its customers, who, in exchange, remain extremely loyal," Abdeslam Ahizoune, Chairman of the management board said.

- By Paris Bureau, Dow Jones Newswires; [phone]; [e-mail]