Senegal's Sonatel grows profit by over 18% to $550m in 2023

Daba Finance/Sonatel grows profit by over 18% to $550m in 2023

BREAKING NEWSFebruary 25, 2024 at 2:54 PM UTC

TLDR

Sonatel, the largest BRVM-listed company, achieved a net result of 331.7 billion FCFA ($550 million) in 2023, an 18.94% increase from the previous year.
Growth driven by a 10.1% rise in mobile data users, leading to a 20.4% revenue increase in this segment.
Broadband revenues surged by 21.2%, while mobile money activity saw a significant 25% year-on-year revenue growth.

Sonatel, the largest company listed on the BRVM by market capitalization, reported excellent financial performance for the past financial year ending in 2023. The group achieved a net result of 331.7 billion FCFA ($550 million), marking an impressive increase of 18.94% compared to the previous year's figure of 278.9 billion FCFA as of December 31, 2022.

This growth was primarily fueled by mobile data, with a 10.1% increase in the number of mobile data users, contributing to a remarkable 20.4% increase in revenue from this segment. Additionally, broadband revenues surged by 21.2%, and mobile money activity experienced substantial revenue growth of 25% year-on-year.

These positive developments resulted in the consolidation of an overall turnover of 1620.7 billion FCFA across the five countries where the Senegalese group operates. This represents an impressive increase of 11.4%, equivalent to a value increase of 165.65 billion FCFA.

Key Takeaways

This commercial success of Sonatel, which dominates the markets in Senegal, Mali, Guinea, Sierra Leone, and Guinea-Bissau in terms of market share, can be attributed to significant investments amounting to 253.5 billion FCFA. Sonatel's investments have been directed towards various strategic initiatives aimed at enhancing its operational presence and expanding its geographic reach while ensuring optimal customer experience in line with industry standards. These investments have materialized through the deployment of new mobile sites, the expansion of the fiber optic network (FTTX), and various operations geared toward improving service quality. In particular, Sonatel Senegal's acquisition of the 5G license, for which it invested 34 billion FCFA, stands out as a significant move. This investment is expected to pave the way for improved margins for the company, as 5G technology offers enhanced capabilities and opens up new opportunities for innovation and service delivery. Interested in being part of Sonatel's solid growth? Get the Daba app now to invest in the company.

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