Sonatel reports higher profits

Sonatel, a telecommunications company active in several African countries, reported a 12.9% increase in net profit to 354 billion FCFA (603.8 million USD) for the first nine months of 2026, compared to the same period in 2025. Revenue also rose by 10.5% to 1583 billion FCFA during the same period.

Profitability improvements

The company attributed the improved profitability to better cost control and growth in its operations, despite challenges like competition and energy supply issues. EBITDAaL, a financial measure that includes lease-related costs, increased by 12.1% to 769 billion FCFA, making up 48.6% of revenue, up from 47.9% a year earlier. The net margin also improved, rising to 22.4% from 21.9%.

Key drivers of growth

Sonatel's business growth is primarily driven by its mobile internet, Orange Money, and fixed internet services. As of September 2026, the company reported 24.5 million active 4G users and 14.4 million active Orange Money clients, a 15.5% increase for the latter. The fiber business is growing even faster, with 710,000 subscribers, a 25.6% increase year-on-year.

Investment in infrastructure

To support its growth, Sonatel increased its investment spending by 13.9% to 231.5 billion FCFA, with 192.5 billion FCFA allocated to network infrastructure. Investments now account for 14.6% of revenue, compared to 14.2% in the same period of 2025. The company is expanding its 4G, 5G, and fiber networks while improving infrastructure reliability amid energy constraints.

Stock performance and split

Sonatel's stock has risen 58.9% since the end of 2025, despite a recent decline. On October 26, the company conducted a stock split, issuing ten new shares for each existing one, reducing the reference price from 43,850 to 4,385 FCFA without changing the theoretical value of shareholders' holdings. The stock closed at 4700 FCFA on the first day following the split but fell to 4150 FCFA by October 29.

Purpose of the stock split

The stock split aims to make the stock more accessible to investors and improve its liquidity. By lowering the price per share, the company hopes to encourage broader participation in its shares and increase trading volume.