TeleGeography Logo

Sonatel 2011 net income drops 16% as tax exemption changes bite

7 Feb 2012

Senegalese telecommunications group Sonatel has published its full year financial results for 2011 showing that EBITDA climbed 3% year-on-year to XOF334.91 billion (USD668 million) and revenue rose 6.5% to XOF635.36 billion. However, FY11 net profit dropped 16% in the same period to XOF154.37 billion, from XOF184.76 billion in FY10, following the removal of a corporate tax exemption it once enjoyed in Mali. Further, the Senegal-based telco bemoaned an unhelpful regulatory and tax climate – particularly in its home market – but that it hopes its margins will remain strong despite the unfavourable conditions. The group’s consolidated EBITDA margin dipped by one percentage point to 53% in FY2011, but the carrier is optimistic it can keep its margin above 50% in fiscal 2012.

In a statement Sonatel, which operates in four west African markets, said: ‘The end of the corporate tax exemption in Mali confirmed the decline in the group’s net income but it did not end our ability to generate cash and maintain a good dividend policy’. The statement went on to note that growth in terms of incoming traffic was put under pressure as a result of a surtax on incoming calls to Guinea and Senegal. Sonatel, part-owned by France Telecom-Orange, said it has a total market share of 61% in Senegal, up by 1% y-o-y; 30% in Guinea, up by two percentage points; and 37% in Guinea-Bissau, up by 6%. However, stiff competition saw its market share slump 9% in Mali.

Senegal, Sonatel (Orange)

GlobalComms Database

Want more? Peruse the GlobalComms Database—the most complete source of intel about mobile, fixed broadband, and fixed voice markets.


TeleGeography is the definitive source for telecom news, numbers, and analysis. Explore the full research catalog.