Itissalat Al-Maghrib (IAM) S.A.: history, ownership, mission, how it works & makes money

A Brief History of Itissalat Al-Maghrib (IAM) S.A.

Itissalat Al-Maghrib (IAM) S.A., founded in 1999, is Morocco's main telecommunications operator. The company was established as a public limited company and has since evolved into a critical player in the telecom sector.

In 2001, IAM launched its mobile services under the brand name 'Méditel,' expanding its service offerings beyond fixed-line telephony. By 2004, the company became an important player in the mobile communications market, with over 1 million subscribers in just a few years.

By 2010, IAM reported a significant achievement, having reached 8.5 million mobile subscribers, which represented a market share of approximately 35%. This year also marked IAM's expansion into broadband services.

In 2014, IAM underwent a rebranding, transitioning from 'Méditel' to 'IAM' for its mobile network. This move aimed to consolidate its brand identity across various service offerings. The same year, the company’s revenue reached approximately 12.5 billion MAD (Moroccan Dirhams), showcasing steady growth in its financial performance.

As of 2021, IAM reported a user base of around 19.1 million mobile subscribers and 1.7 million fixed-line subscribers. The financial results indicated a total revenue of about 36.5 billion MAD, representing a year-on-year growth of 2.3%.

Below is a table summarizing IAM's key financial metrics and subscriber growth over recent years:

In 2022, IAM further advanced by investing in digital services, aiming to enhance internet penetration and digital infrastructure across Morocco. The emphasis on fiber-optic networks has led to a notable increase in broadband subscribers, reinforcing IAM's market leadership.

As of 2023, IAM's focus remains on expanding its 5G network, implementing innovative solutions in IoT (Internet of Things), and delivering enhanced customer experience. The company’s commitment to environmental sustainability and corporate social responsibility has also become prominent, reflecting a broader trend in the telecommunications sector towards responsible business practices.

A Who Owns Itissalat Al-Maghrib (IAM) S.A.

Itissalat Al-Maghrib (IAM) S.A., also known as Maroc Telecom, is a leading telecommunications operator in Morocco, with significant market influence across several segments including mobile, fixed-line, and internet services. As of the latest reports, the ownership structure of IAM reveals a mix of government and foreign investment.

The Moroccan government holds a significant stake in IAM, possessing approximately 30% of the company's shares. This state ownership is facilitated through the Ministry of Economy and Finance. In addition, IAM is listed on the Casablanca Stock Exchange, where it has a diverse group of shareholders.

One of IAM's primary shareholders is the multinational telecommunications company Vivendi S.A., which acquired a stake in IAM. As of early 2023, Vivendi holds around 53% of the company's shares, making it the largest single shareholder. This stake was part of a broader strategy for Vivendi to expand its influence in the African telecommunications market.

Below is a detailed table showing the ownership structure of Itissalat Al-Maghrib (IAM) S.A. as of the latest financial disclosures:

In terms of share performance, IAM has consistently shown resilience in the highly competitive telecom landscape. As of late September 2023, IAM's market capitalization stood at approximately 114 billion MAD, translating to about 12.3 billion USD. The stock price for IAM shares has fluctuated around 130 MAD per share, reflecting both domestic economic conditions and regional telecom dynamics.

Financially, for the fiscal year ending December 2022, IAM reported revenues of approximately 35.7 billion MAD (about 3.74 billion USD), with a net income of 6.5 billion MAD (around 686 million USD). The company's EBITDA margin was reported at 45%, highlighting its operational efficiency in a competitive market.

The strategic direction under Vivendi's management has led to investments in expanding the fiber-optic network and enhancing mobile service capabilities, aiming to increase the user base and capture more market share across Africa.

Itissalat Al-Maghrib (IAM) S.A. Mission Statement

Itissalat Al-Maghrib (IAM) S.A., the leading telecommunications operator in Morocco, has a mission to provide reliable telecommunications services that enhance communication and connectivity for individuals and businesses. The company aims to foster digital transformation in Morocco through innovative solutions that improve customer satisfaction and support economic growth.

The company’s vision is broad, placing significant emphasis on delivering high-quality services while also committing to social responsibility, environmental sustainability, and community engagement. IAM believes in the importance of being a key player in the digital economy by expanding its network infrastructure and investing in cutting-edge technologies.

Core Values

• Customer Focus: Prioritizing customer satisfaction and engaging with customer needs.
• Innovation: Embracing new technologies and fostering creativity in service offerings.
• Sustainability: Committing to environmentally-friendly practices and social responsibility.
• Integrity: Upholding high ethical standards in all company dealings.

Financial Performance

As of the latest annual report for 2022, IAM reported total revenues of MAD 36 billion, reflecting a year-over-year growth of 2.1%. The company maintains a customer base of over 19 million subscribers across mobile, fixed line, and data services.

IAM has also focused on expanding its broadband network, with over 7 million fixed broadband subscribers reported, promoting digital inclusion throughout the country. The company has invested significantly in infrastructure, amounting to approximately MAD 5.2 billion in capital expenditures in 2022, aimed at enhancing service delivery and expanding coverage.

Strategic Objectives

IAM's key objectives include:

• Enhancing customer experience through improved service delivery.
• Leading the market in digital innovation and technological advancements.
• Expanding its footprint in underserved areas to bolster digital inclusion.
• Strengthening partnerships with various stakeholders for collaborative growth.

With a commitment to achieving these objectives, IAM shapes its mission to not only meet current customer demands but also anticipate future trends in telecommunications, positioning itself as a forward-thinking leader in the industry.

How Itissalat Al-Maghrib (IAM) S.A. Works

Itissalat Al-Maghrib (IAM) S.A. operates as a leading telecommunications provider in Morocco, offering a broad spectrum of services including mobile and fixed-line telephony, broadband internet, and enterprise solutions. Established in 1999, IAM is known for its significant market share and substantial infrastructure investment in telecommunications.

As of December 31, 2022, IAM reported total revenue of MAD 36.2 billion, with a net income of MAD 6.2 billion. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at MAD 17.2 billion, reflecting a margin of approximately 47.5%.

The company’s mobile service segment accounted for around 67% of total revenues, driven by robust growth in data services. As of Q2 2023, IAM had approximately 19.2 million mobile subscribers in Morocco, translating to a market penetration of about 60%.

In terms of broadband services, IAM reported a customer base of 1.8 million fixed broadband subscribers, growing steadily as demand for internet services increases. The company has invested significantly in fiber-optic networks, expanding its reach to urban and rural areas.

IAM operates under a regulatory framework set by the National Regulatory Authority for Telecommunications (ANRT), which oversees market competition and ensures that quality standards are maintained. The company invests heavily in technological innovation, with a focus on expanding its 4G network and preparing for 5G deployment.

Additionally, IAM has consistently pursued strategic partnerships and acquisitions to enhance its service offerings. In 2023, the company launched new digital services, aiming to increase its competitiveness in an evolving market landscape. IAM’s focus on enhancing customer experience is reflected in its ongoing investment in customer service technologies and user-friendly digital platforms.

The telecommunications landscape in Morocco has become increasingly competitive, with several players entering the market. However, IAM retains a dominant position, bolstered by its extensive infrastructure and brand recognition. The company's efforts in corporate social responsibility, focusing on digital inclusion and environmental sustainability, also contribute to its favorable public image.

Overall, Itissalat Al-Maghrib (IAM) S.A. exemplifies a robust telecommunications model, characterized by steady growth, substantial market share, and an ongoing commitment to technological advancement and customer satisfaction.

How Itissalat Al-Maghrib (IAM) S.A. Makes Money

Itissalat Al-Maghrib (IAM) S.A., the leading telecommunications provider in Morocco, has established a diverse revenue model that encompasses various sectors of the telecom market. The company generates income through voice services, data services, and additional offerings such as fixed-line services, wholesale services, and digital solutions.

Revenue Breakdown

According to IAM's financial report for the fiscal year ending December 31, 2022, the company's total revenue reached MAD 37.3 billion, with different segments contributing as follows:

The mobile services segment is the cornerstone of IAM’s revenue, significantly enhanced by the growing demand for mobile data. In 2022, mobile data usage surged, with the average revenue per user (ARPU) increasing by 12% year-over-year, reaching approximately MAD 92.

Mobile Services

IAM's mobile segment encompasses postpaid and prepaid plans, with a current subscriber base exceeding 19 million users. The fact that IAM holds around 43% of the Moroccan mobile market share illustrates its dominant position. The company has also invested in expanding its 4G network coverage, which now reaches approximately 98% of urban areas and 85% of rural regions.

Internet Services

The internet services segment has been witnessing robust growth, driven by increased demand for broadband connectivity. As of 2022, IAM reported an increase to 2.4 million ADSL subscribers, and a notable 47% growth in fiber optic subscriptions, totaling around 300,000 customers. This growth in internet services is complemented by the growing trend of digital services adoption, including e-commerce and streaming platforms.

Fixed-Line Services

While the fixed-line segment is experiencing a decline in traditional voice services, IAM continues to expand its offerings in this category. Fixed-line revenues were approximately MAD 6.5 billion in 2022. The company is also focusing on bundling services to retain customers, providing packages that combine mobile, internet, and fixed-line services.

Wholesale and Digital Services

The wholesale segment, which includes services provided to other operators, contributed about MAD 1.0 billion in 2022, bolstering IAM’s overall revenue. Additionally, IAM has ventured into digital services, including mobile payment solutions through its 'Wink' app, which has seen user engagement increase significantly, reflecting a growing trend in digital financial services.

Cost Management

IAM's operational efficiency is crucial to its profitability. For 2022, the company reported an operating profit margin of 34%, with operational costs totaling approximately MAD 24.6 billion. Investments in technology and infrastructure have been balanced with cost-cutting measures, allowing IAM to maintain significant profitability despite a competitive market landscape.

Financial Performance

IAM's financial health as reported for the fiscal year 2022 showcases the following key metrics:

This financial performance indicates a solid foundation for future growth, reflecting IAM's effective strategies in navigating market challenges while capitalizing on new opportunities.