Burkina Faso Telco Onatel Q1 Revenue Jumps 4%
TLDR
- Onatel (BRVM: ONTBF), Burkina Faso's main telecom operator, reported first-quarter revenue of 36.5 billion CFA francs ($62 million), up 4% year-on-year
- Net profit fell 24.7% to 3.9 billion CFA francs ($6.6 million), while EBITDA decreased 8.8% to 15 billion CFA francs ($25.5 million)
- The company blamed increased energy costs, site maintenance in security-challenged areas, and higher Mobile Money commissions for the profit decline
Onatel (BRVM: ONTBF), Burkina Faso's main telecom operator, reported first-quarter revenue of 36.5 billion CFA francs ($62 million), up 4% year-on-year. This follows full-year 2024 revenue of 140.2 billion CFA francs ($238.1 million).
Net profit fell 24.7% to 3.9 billion CFA francs ($6.6 million), while EBITDA decreased 8.8% to 15 billion CFA francs ($25.5 million). The company's EBITDA margin contracted to 41.2% from 47% a year earlier. Onatel recorded FY 2024 net profit of 20.1 billion CFA francs ($34.1 million) with an EBITDA of 63.2 billion CFA francs ($107.3 million).
The company blamed increased energy costs, site maintenance in security-challenged areas, and higher Mobile Money commissions for the profit decline. Customer base grew 3.8% to 12.2 million users. Mobile subscribers increased 3.7% while fixed-line customers fell 3%. Internet users (fixed and mobile) rose 7.1%.
Growth drivers included Mobile Money transaction volume (+20.4%), prepaid mobile (+3.6%), and high-speed fiber optic services (+104.7%). The company continues investing in network modernization and rural connectivity.
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Key Takeaways
Onatel, 61% owned by Morocco's Maroc Telecom and 16% held by the Burkina Faso government, operates in West Africa's increasingly competitive telecom market. The company trades on the regional BRVM stock exchange, which uses the CFA franc to serve eight West African countries. Telecom operators across West Africa face similar challenges of high infrastructure costs and security concerns in certain regions. Despite profitability pressures, ONATEL maintains its market leadership in Burkina Faso, where mobile penetration reached approximately 97% in 2024 according to industry data. The country's growing demand for data services and mobile financial solutions presents ongoing growth opportunities despite operational challenges.
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