Senegalese telco Sonatel grows net profit by 30% in first half
TLDR
- Sonatel, the top company on the BRVM, reports a 29.6% increase in net income, driven by growth in mobile data, broadband, and mobile money segments.
- Overall turnover of Sonatel rises by 10.5%, reaching 877.7 billion FCFA, with EBITDAAL increasing by 17% to 407.7 billion FCFA.
- Operating income for Sonatel sees a significant 32.6% rise, reaching 301.9 billion FCFA.
Sonatel, the most valuable company on the BRVM, reported a 29.6% increase in net income for the first six months of the year, rising from 148.6 billion FCFA to 192.6 billion FCFA ($318 million), according to its latest financials for the quarter ended June 2024.
This growth was driven by significant improvements in revenue from the mobile data (+16.9%), broadband (+20.4%), and mobile money (+15%) segments. These gains boosted the group's overall turnover by 83.6 billion FCFA, reaching 877.7 billion FCFA, up from 794.1 billion FCFA a year earlier, representing a 10.5% increase.
In addition, the Senegalese network operator (SNTS) posted a 17% increase in EBITDAAL to 407.7 billion FCFA, with an EBITDAAL margin up 2.6 points to 46.5%. Operating income also saw a substantial rise of 32.6%, reaching 301.9 billion FCFA compared to 227.7 billion FCFA the previous year.
Key Takeaways
Present in five countries—Senegal, Mali, Guinea, Sierra Leone, and Guinea-Bissau—the telecom company Sonatel has continued its investments, totaling 134.5 billion FCFA. These investments are aimed at maintaining its leading position in all these countries. Looking ahead, Sonatel plans to strengthen its commercial activity and optimize its expenses to further improve its performance in the second half of 2024. Additionally, the company intends to accelerate its digitalization process to enhance the experience for both customers and employees. The Sonatel stock has hovered around 5-year highs in the last few weeks.
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