Burkina Telco Onatel To Pay Dividends Despite Marginal Profit Growth
TLDR
- Onatel SA (BRVM: ONTBF), Burkina Faso's main telecom operator, reported a 1.9% revenue increase to 141.8 billion XOF ($246.3 million) for FY2024
- Net profit rose 1.6% to 21.5 billion XOF ($37.3 million) under OHADA standards and 2.3% to 20.6 billion XOF ($35.8 million) under IFRS norms
- The board will propose a gross dividend of 216.61 XOF ($0.38) per share for its 68 million shares, payable from July 21, 2025
Onatel SA (BRVM: ONTBF), Burkina Faso's main telecom operator, reported a 1.9% revenue increase to 141.8 billion XOF ($246.3 million) for FY2024, according to results published on the BRVM stock exchange. Net profit rose 1.6% to 21.5 billion XOF ($37.3 million) under OHADA standards and 2.3% to 20.6 billion XOF ($35.8 million) under IFRS norms, despite energy cost increases and expenses to repair vandalized infrastructure.
The company's customer base grew 4% to over 12 million users, driven by mobile internet (+6.3%), fiber optic services (+155.5%), and mobile money (+16.9%). Mobile money transaction volume increased 31.8%. Onatel maintained high profitability with a 46.8% EBITDA margin despite exceptional costs impacting performance indicators.
The board will propose a gross dividend of 216.61 XOF ($0.38) per share for its 68 million shares, payable from July 21, 2025. The company plans continued investment in 2025 to strengthen network performance, improve service quality, and streamline customer experience while optimizing costs to increase profitability. Onatel is 61% owned by Maroc Telecom Group, with the Burkina Faso government holding 16%.
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Key Takeaways
Onatel's performance reflects resilience in Burkina Faso's telecom sector despite regional challenges. The company trades on the BRVM, West Africa's regional stock exchange serving eight countries. Telecommunications remain critical infrastructure in Burkina Faso, where internet penetration stands at approximately 30%. Mobile banking services like those offered through Onatel's mobile money platform provide essential financial access for many unbanked citizens. The company's fiber optic expansion aligns with regional trends to improve connectivity. According to industry reports, broadband demand across West Africa continues to grow as digital transformation accelerates across sectors from agriculture to financial services. The dividend announcement signals confidence despite economic headwinds facing the country, including security concerns that have impacted infrastructure development in certain regions.
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