While in June 2020, it completed a loan of 100 billion FCFA to support its investments, the telecom group Sonatel found itself with 38 billion FCFA in additional cash, due to a decrease in its capital expenses.

In the first 9 months of 2020, the telecom operator Sonatel managed to increase its cash reserves by 38 billion FCFA (+19.2%), despite a 2% drop in its net profit, can be seen from financial communications published by the company on the BRVM website.

Its managers explain this situation by the reduction in capital expenditure over the same period, but also by the achievement of good operating margins. Sonatel has benefited from several favorable factors

There has been an increase in its customer database, which now reaches 34.4 million people, an increase in the number of users of its Orange Money service, which has reached 7.9 million active subscribers, up 25.5%. Thus, its turnover for the period reached 895 billion FCFA, an increase of 3.5%

However, the reduction in investments over the period under review may seem contradictory, as in June 2020, Sonatel mobilized 100 billion FCFA on the UEMOA capital market, with the intention of conducting new investments.

It is not excluded that the company is in the process of creating a maximum cash reserve to meet its future commitments. The company is in fact operating in a mature and very competitive market; this does not allow the strong growth rates to be achieved in the meantime

In the June bond briefing note, the group expected to achieve a consolidated net margin of 18.5% in 2020. However, compared to current performances, this is only 15.6%. In addition, Sonatel is in the process of keeping its promise of free cash flow with a current ratio of 26.3% compared