Maroc Telecom's revenues for the first half declined by 0.8 percent from a year earlier to MAD 15.3 billion.

This was due to the slight decline in revenues in Morocco (-1.7%) in an intensely competitive environment, compensated partly by growth of 4.8 percent in subsidiaries' revenues. Revenues in the second quarter amounted to MAD 7.8 billion, a decline of 2.8 percent from 2010.

Maroc Telecom's net income came to MAD 3.98 billion for the first half, a decline of 10.3 percent from a year earlier. The group's customer base expanded to more than 27.5 million at 30 June, an increase of 16.5 percent on an annual basis. This performance was the result of growth of 6.4 percent in Morocco and a dynamic sales trend among the various subsidiaries, in which the mobile customer base grew by 49 percent. EBITDA reached MAD 8.3 billion, a decline of 7.4 percent compared with 2010, the result of lower revenues in Morocco. Despite this decline, the margin stayed at 54.3 percent. Group operating income during the period amounted to MAD 6.1 billion, down 8.3 percent from a year earlier, because of lower EBITDA and continued significant expenditure in networks and systems. In the second quarter, operating income came to MAD 3.1 billion, down 9.6 percent from 2010. Maroc Telecom cut its outlook for the full year, forecasting a slight drop in revenues and an operating margin similar to H1. The company previously expected higher revenues in 2011.

In Morocco, net revenues for the first half declined by 1.7 percent to MAD 12.5 billion, and operating profit fell 8.6 percent to MAD 5.6 billion. Mobile's gross revenues fell by 1.0 percent to MAD 9.4 billion due to a significant price reduction in the sector, the operator said, and mobile operating profit declined 7.6 percent to MAD 4.4 billion, also hurt by a reduction in the exemption from the Universal Service contribution granted to Maroc Telecom for its investments in rural zones. At 30 June, the mobile customer base reached 16.994 million, an increase of 6.9 percent on a year earlier. Annualized churn improved by 5.7 points, to 21.7 percent, while postpaid customers grew 27.7 percent to a total 934,000.  The 3G mobile internet customer base continued its positive trend, with 812,000 customers. ARPU for H1 fell 7.8 percent year on year to MAD 86, affected by the growth of the customer base and lower prices. These two effects were compensated partially by a strong rise in consumption and 3G mobile internet. The fixed-line and internet activities in Morocco generated gross revenues of MAD 3.8 billion, a decline of 11.2 percent, mainly because of mobile substitution lower rates for lines leased to the mobile unit.