08 November 2024
Sonatel Group reported a 20.1% increase in its net profit in the third quarter of 2024, which reached 288.9 billion FCFA, despite an economic context weakened by economic slowdowns in Senegal, Mali and Sierra Leone. The operator attributes this performance to its strategy of diversifying growth drivers, particularly in the data, Orange Money and fixed services segments.
Sonatel's consolidated revenues increased by 9.8% year-on-year to reach 1,319 billion FCFA, explained by the growing demand for mobile data and 4G subscriptions, reinforced by the expansion of its very high-speed network (FTTX). The Orange Money segment also remains a pillar for the Senegal-based company, which notes continued growth in users and transactions, while the interoperability of mobile money solutions is developing under the impetus of the Central Bank of West African States (BCEAO).
Mobile data subscribers now stand at 23.4 million FCFA, an increase of 19.2% over one year, while fibre subscribers reach 415,000, an increase of 41.6%, with a connection rate of 48% that Sonatel considers as a step forward towards the democratization of its broadband offers.
EBITDAAL (earnings before interest, taxes, depreciation and amortization, after rental costs), a key profitability indicator for the operator, increased by 15% to 615.5 billion FCFA, with a margin of 46.7%. According to Sonatel, this increase reflects its cost control efforts, which have allowed it to maintain high profitability despite increased competition and economic challenges in its main markets.
To support its growth, the operator reports having invested 198.1 billion FCFA during the third quarter in the expansion of its infrastructure, including the development of the fibre optic network and the opening of new mobile sites to meet the demand for connectivity. It considers these investments as strategic to capture future opportunities in an environment where demand for broadband continues to grow.
Despite these results, Sonatel highlights an uncertain economic context and competitive pressures, particularly with the arrival of new satellite operators. For the last quarter of 2024, Sonatel will continue its digitalization strategy, invest in quality of service, and strengthen its cost optimization efforts, in order to consolidate its position as regional leader in a rapidly changing sector.
