Burkina Faso's Onatel Reports 16.4% Dip in Profit for First Half 2024
TLDR
- Onatel BF (ONTBF) in Burkina Faso experienced a 16.4% drop in profits in the first half of 2024 due to rising energy costs and maintenance expenses.
- Despite the decrease in profitability, Onatel BF saw a 1.7% revenue growth, driven by strong performance in Mobile Data, Mobile Money, and high-speed services.
- Operating income decreased by 6.9% to 14.86 billion FCFA, while revenue reached 71 billion FCFA with a 27% increase in transaction volumes.
The Burkinabe subsidiary of Moov Africa, Onatel BF (ONTBF), closed the first half of 2024 with a 16.4% drop in profits, falling to 9.33 billion FCFA ($16 million) from 11.16 billion FCFA a year earlier. This follows a promising start to the year, where the company reported a 9.4% increase in results at the end of March.
The decline in profitability is attributed to rising energy costs and increased maintenance efforts, particularly for repairs to vandalized sites. These challenges contributed to a 6.9% decrease in operating income, which stood at 14.86 billion FCFA by the end of June, while the result of ordinary activities contracted by 6.6% to 16.03 billion FCFA.
Despite these setbacks, Onatel BF’s revenue grew by 1.7%, reaching 71 billion FCFA, up from 69.83 billion FCFA during the same period in 2023. This was largely driven by the strong performance of its Mobile Data (+15.7%), Mobile Money (+16.1%), and high-speed services (+186.2%), with a 27% increase in transaction volumes.
Points clés à retenir
Looking ahead to the second half of 2024, Onatel BF plans to ramp up investments, enhance service quality, and streamline the customer experience to improve profitability. The company's share price, which had been on a two-year decline, has regained investor confidence, rising by around 13% since the start of the year. As of September 16, 2024, the share price stood at 2,580 FCFA, up from 2,280 FCFA at the beginning of the year.
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