Maroc Telecom reported a 5.9% drop in first-quarter net profit for 2025, attributing the decline to regulatory penalties and increased operational costs in its domestic market. The company’s net profit fell to MAD 1.43 billion ($154 million), while consolidated revenue decreased by 2% to MAD 8.8 billion.
The decline in revenue was primarily due to a 3.7% drop in its core Moroccan market, where the company faced a competitive landscape and regulatory challenges. In contrast, its African subsidiaries, operating under the Moov Africa brand, saw a 4.1% increase in revenue, driven by mobile data and fintech services.
Despite the financial challenges, Maroc Telecom’s customer base grew by 3.6% to nearly 80 million subscribers, with significant growth in its African markets. The company is investing in broadband and mobile payment services across these regions to drive future growth.
In a strategic move to enhance its infrastructure, Maroc Telecom announced a joint investment with competitor Inwi to roll out 5G and fibre-optic networks in Morocco.
The partnership involves a MAD 4.4 billion investment over three years to accelerate the country’s digital transformation.
Maroc Telecom, 53% owned by the UAE’s Etisalat and 22% by the Moroccan state, continues to navigate a challenging domestic market while leveraging growth opportunities in its African operations.
The company’s focus on expanding digital services and infrastructure is central to its strategy for sustaining long-term growth.
Maroc Telecom’s challenges mirror broader trends in Africa’s telecom sector. MTN Group, Africa’s largest telecom operator, reported a 69% decline in full-year earnings due to the devaluation of the naira and operational challenges in Sudan.
The company’s headline earnings per share fell to $0.98 from $0.31 in the previous year. Nigeria’s chronic dollar shortages necessitated a weakening of the naira to stabilise the currency and attract investment, contributing to a significant increase in costs and a pretax loss of ₦550.3 billion for MTN Nigeria.
Additionally, armed conflict in Sudan adversely affected MTN’s operational and financial performance there. Overall, MTN’s group service revenue decreased by 15% to 177.8 billion rand, though it rose 14% in constant currency terms.
Despite these challenges, the company declared a final dividend of 345 cents per share, an increase from 330 cents.
Airtel Africa faced similar headwinds. The telecom operator suffered a $500 million revenue drop in Nigeria, its largest market, due to the significant devaluation of the naira.
Despite increasing its user base by 8.2% and data usage per customer by 37.2%, the decline in revenue was substantial. However, Airtel Africa reported revenue increases in East and Francophone Africa, driven by mobile data and fintech services.
These developments highlight the challenges faced by telecom operators across Africa, including currency devaluations, regulatory pressures, and the need for ongoing investment in infrastructure to meet the growing demand for digital services.
