Tawasol Group Holding Releases Second Quarter 2024 Financial Results
On-Time Reporting and Improved Performance
Tawasol Group Holding has released its financial results for the second quarter of 2024, meeting the deadline and becoming the third company on the stock exchange to announce its figures for the period.
Revenue Growth and Sector Performance
The group's revenue for the second quarter of 2024 has improved by 18.9%, reaching 22,317 Mtnd. The Industry sector remains the primary contributor to revenue, with 8,135 Mtnd, despite a 19.9% year-over-year decline.
The Telecommunications sector has reported revenue of 6,462 Mtnd, representing a 10.6% increase compared to the same period in 2023. Export activities account for 77.3% of revenue in this sector, with a 22.0% year-over-year growth, reaching 4,990 Mtnd. The quarter saw market consolidation in the Democratic Republic of Congo and Ethiopia, as well as the restructuring of the Moroccan subsidiary, which more than offset the 16.0% decline in local market revenue, which stood at 1,473 Mtnd.
The Infrastructure sector has rebounded, with revenue of 7,719 Mtnd. During the period, the group launched the construction project for a wastewater treatment plant in Ganvié, Benin, and initiated studies for the sanitation project in the Agoè Houmbi area in Togo.
Real Estate and Outlook
The Real Estate sector has reported zero revenue. However, the group's companies hold significant land reserves in strategic areas of the capital, which will be used for building construction, contributing to future revenue.
Year-to-Date Performance and Outlook
Since the beginning of the year, total revenue has reached 44,422 Mtnd, representing a 20.2% increase compared to June 2023. All activities have experienced significant growth, particularly Infrastructure (+142.5%, to 13,512 Mtnd) and Telecommunications (+22.5%, to 13,187 Mtnd). The Industry sector still shows a 13.1% decline, to 17,722 Mtnd.
The outlook is generally positive, with investments remaining suspended pending a strategic review. Debt continues to decrease, standing at 38,300 Mtnd, including 22,947 Mtnd in short-term debt.
The stock has underperformed by 16.9% since the beginning of the year. This publication should give investors hope for a return to profitability in the social accounts. The company must confirm its recovery in the coming quarters to convince investors that it is on the right track.