Senegal: SONATEL shines in Q1 posts $102m net profit
Despite being under the microscope of the telecommunications regulator for, among others, violating the provisions on the portability of mobile telephone numbers, SONATEL (Société Nationale de Télécommunication du Sénégal), has posted a whopping net profit of FCFA55 billion (nearly $102 million) in the first quarter of 2021, according to figures posted last week on the company’s website.
This is an increase of 26.5% compared to the same period last year, thanks to margin performances operational reinforced by the control of depreciation despite the increase noted in capital expenditure.
Turnover for Q1 reached nearly $503 million (+nearly $53 million), driven by retail (data, Orange Money and fixed line services) in all countries, mainly in Guinea, Mali and Sierra Leone.
This is an enormous performance under the current circumstances during which many businesses across various sectors in Africa have reported losses or a decrease in their profits.
With 13.2 million internet and mobile customers in March 2021, an increase of 9.2%, and 8.8 million Orange money customers, SONATEL has often been referred to as the country’s leader in telecommunications.
However, its alleged unfair handling of the portability of mobile telephone numbers has forced the regulator to notify it about the violations on the decisions of the provisions.