The top telecom company in Morocco, Maroc Telecom, reported a 5.9 percent drop in first-quarter 2025 profits, giving shareholders 1.43 billion dirhams ($154 million) for the January–March period.
The business, which is listed on Euronext Paris and the Casablanca Stock Exchange, ascribed the decline in profits to a two percent annual decline in consolidated revenue, which dropped to 8.8 billion dirhams.
The main cause of this decline was a 3.7 percent decline in revenue from its core Moroccan market; however, a 4.1 percent increase in revenue from its African subsidiaries, known as Moov Africa, partially offset this decline.
Maroc Telecom’s customer base climbed 3.6% to 80 million
Maroc Telecom reported a strong 3.6 percent increase in its customer base, reaching close to 80 million subscribers by the end of March 2025, despite the financial difficulties.
A 6.5 percent rise in subscribers at its Moov Africa subsidiaries, which are active in ten African nations—Benin, Burkina Faso, Central African Republic, Chad, Gabon, Ivory Coast, Mali, Mauritania, Niger, and Togo—was a major contributor to this expansion.
The company cited its strategic investments in mobile payment services and broadband in these markets as major factors contributing to this expansion.
Maroc Telecom, which is 22 percent owned by the Moroccan government and 53 percent owned by Etisalat (e&) of the United Arab Emirates, has been negotiating a cutthroat domestic market while using its African operations to increase revenue. Its internationalisation strategy has been successful, as evidenced by the fact that at least 40 percent of its revenue comes from sources outside of Morocco.
The significance of these markets for the company’s long-term growth has been cemented by strong results in Burkina Faso and Côte d’Ivoire, as well as by growing demand for mobile data and various service offerings.
The drop in profits coincides with large infrastructure expenditures, especially high-speed fixed broadband, which the business has prioritised to satisfy the increasing demands of the digital world.
The 3.6 percent growth in postpaid services propelled Maroc Telecom’s mobile customer base to 19.9 million, while its fixed-line customer base reached 1.7 million, with a 34 percent year-over-year surge in fiber-to-the-home (FTTH) subscriptions.
As stated in the Maroc Digital 2030 strategy, these initiatives are in line with Morocco’s larger objectives for digital transformation, which include increasing internet and mobile network accessibility, particularly in rural areas.
Maroc Telecom’s partnership with Inwi on 5G, fibre-optic networks rollout
One notable development for the telecom behemoth in 2025 is the deepening of its collaboration with rival Inwi, the third-largest telecom provider in Morocco, to expedite the rollout of 5G and fibre-optic networks.
The deal, which was announced in March, calls for a three-year, 4.4 billion dirham ($460 million) joint investment to create FiberCo and TowerCo, two equally owned joint ventures.
While TowerCo will supervise the construction of 2,000 new towers in three years and 6,000 in ten to support the rollout of 5G, FiberCo wants to expand fibre-optic networks to reach one million connections in two years and three million in five.
The agreement is regarded as a calculated step to improve market stability and establish Morocco as a regional digital hub, and it is pending approval by Morocco’s National Telecommunications Regulatory Agency (ANRT).
Maroc Telecom-Inwi’s legal dispute
A previous legal dispute was also resolved by the partnership; instead of paying the 6.38 billion dirhams that the court had originally ordered, Maroc Telecom agreed to pay Inwi 4.38 billion dirhams ($455 million) to settle claims of unfair competition practices.
To meet Morocco’s ambitious 5G coverage targets—which include reaching 25 percent of the population by 2026 and 70 percent by 2030—in time for the country to co-host the World Cup with Spain and Portugal, this resolution enables both operators to concentrate on cooperative efforts.
Due to strong data demand, Maroc Telecom’s African subsidiaries continue to be a bright spot, generating 13.91 billion dirhams ($1.4 billion) in revenue in the first nine months of 2024. Performance has been impacted by Morocco’s difficulties, though, which include a competitive market and regulatory scrutiny.
The company was fined $630 million for unfair competition in 2024 after being fined 3.3 billion dirhams in 2020 for preventing rivals from accessing network infrastructure. The continued tensions in Morocco’s telecom industry, where Maroc Telecom has a 38 percent market share, ahead of Orange Maroc (33.2 percent) and Inwi (23.9 percent), are highlighted by these setbacks.
Maroc Telecom’s commitment to boost digital infrastructure
Maroc Telecom is committed to bolstering its digital infrastructure and assisting Morocco’s digital economy in the future.
Jassem Alzaabi, Chairman of e&, emphasised the company’s commitment to long-term investment, stating, “This strategic collaboration with Inwi reflects institutional maturity and underscores our dedication to building a comprehensive digital model that supports Morocco’s transformation.”
The business is positioned to handle domestic obstacles and take advantage of regional opportunities thanks to its initiatives to roll out 5G, improve broadband access, and increase its presence in Africa.
The company intends to preserve shareholder confidence in spite of the decline in profits by offering a proposed dividend of 1.43 dirhams per share, or 1.26 billion dirhams.
