Tunisian Telecommunications Company Sotetel Reports Strong Q3 Results
Revenue Up 7.3% to 13,699 MTND, Driven by Local Market Growth
The Tunisian Telecommunications Company, Sotetel, has published its quarterly operating results, reporting a revenue of 13,699 MTND, a 7.3% increase year-over-year. The local market revenue grew by 10.1% to 13,168 MTND, while exports declined by 32.8% to 0.362 MTND.
Since the beginning of the year, operating revenue has increased by 25.9% to 48,910 MTND, driven by a thriving local market (+27.6% to 47,595 MTND) and strong demand for fiber optic connections from customers. However, the reduction in the number of technicians operating in Malta negatively impacted export activity.
Operating Expenses Rise 7% to 12,745 MTND
In parallel, operating expenses increased by 7.0% to 12,745 MTND for the third quarter, mainly due to higher consumption costs (+4.8% to 7,190 MTND) and personnel expenses (+10.0% to 4,577 MTND). Over the first nine months, these expenses totaled 44,814 MTND.
EBITDA Up 56.3% to 4,775 MTND
Sotetel's EBITDA rose 56.3% to 4,775 MTND as of September 30. Financial income stood at 0.769 MTND, while financial expenses increased by 7.3% to 1,533 MTND compared to the same period in 2023.
Positive Outlook for 2024
The signs point to a strong 2024 performance. The first half of the year was marked by a net profit of 1,639 MTND, more than triple the amount achieved the previous year. We believe Sotetel will consolidate its activities for the rest of the year, ensuring revenue growth and cost optimization. The market has welcomed these advances, with the company's stock posting the second-best performance on the Tunis Stock Exchange since the beginning of the year, with a return of 102.78%.
