Maroc Telecom - Q1 2026 Earnings Analysis

Performance Highlights

Maroc Telecom reported Q1 2026 consolidated revenues of MAD 9,327 million, up 5.0% year-on-year (3.9% at constant exchange rates), ahead of the stabilisation trajectory implied by prior guidance. Group EBITDA reached MAD 4,660 million, a 6.1% increase, with margin expanding 0.5 percentage points to 50.0%, while net income group share of MAD 1,304 million fell 3.4%, entirely attributable to the social solidarity contribution rather than operational deterioration.

The standout driver was the Moov Africa subsidiaries, which grew revenues 8.5% to MAD 5,027 million and lifted EBITDA 11.2% to MAD 2,199 million, with margin improving 1.1 points to 43.8%, as Mobile Data, Fixed Data, and Mobile Money offset declining voice and incoming international revenues. Morocco contributed MAD 4,581 million in revenue, up a modest 0.7%, with FTTH-driven Fixed Data and Mobile Data gains absorbing legacy voice and ADSL erosion, while Morocco's EBITDA margin reached a high 53.7%.

Management Outlook and Forward Catalysts

Management's accelerated CAPEX deployment — up 50.5% excluding frequencies and licenses to MAD 1,348 million, heavily weighted toward broadband and 5G in Morocco — signals the group is in an active network investment phase aimed at sustaining data-led revenue growth across both geographies. The 39.9% reduction in Morocco net debt to MAD 7,091 million and a group net debt-to-EBITDA ratio of 1.0x preserve meaningful financial flexibility to fund expansion and potential opportunistic growth.

The central investor debate heading into Q2 2026 centres on whether 5G-related CAPEX in Morocco, which compressed Morocco CFFO by 5.5%, will translate into measurable ARPU uplift, and whether Moov Africa can sustain double-digit EBITDA growth against a challenging competitive and regulatory environment across its eleven sub-Saharan markets.