- Sudatel Telecom Group (STG) is a leading telecom company in the region, catering to the needs of customers in Sudan and across Africa.
- Sudatel Telecom Group (STG) reported a consolidated revenue of $400 million for the fiscal year (FY) 2023, representing a slight decline of 5% compared to the previous year.
The April 2023 Sudan war impacted Sudatel’s “Sudani,” which provided free services for 10 weeks. Despite this, the Group achieved a 42% EBITDA margin and $19.9 million net income. All operations reported positive net income for the first time since 2017. Sudatel’s cost management and recovery efforts have mitigated disruptions. Founded in 1993, Sudatel has grown regionally and remains committed to ethical practices and community service.
Sudatel shows positive performance in difficult times
The war outbreak in Sudan in April 2023 affected the Group’s largest operation, “Sudani,” which provided free services for nearly 10 weeks (about 20% of the year). Despite this, the Group achieved an EBITDA margin of 42% and net income of $19.9 million, down from $56.9 million the previous year, amidst significant cost pressures.
For the first time since 2017, all of Sudatel’s operating companies reported positive net income, despite the challenging situation in Sudan. The Sudan operation managed costs effectively while investing in network development, maintaining positive cash flow without external funding. Efforts were made to improve EBITDA margins in West Africa to counterbalance the financial impact in Sudan.
“Sudani” led STG’s revenue with $271.9 million, down from $285.8 million in FY2022. Revenue in Q1 FY2023 grew exceptionally until the crisis disrupted this trend. Despite significant cost increases and the depreciation of the Sudanese Pound (SDG), Sudani achieved an EBITDA margin of 46%. Local currency revenue increased by 10%, but a provision for damage of $26.2 million caused net income to fall from $82.2 million (SDG 45.4 billion) to $28.3 million (SDG 17.2 billion).
These results demonstrate the management’s ability to navigate difficulties and ensure business continuity.
Overall, the war’s disruptions have been largely mitigated through recovery initiatives aligned with the company’s transformation strategy, underscoring STG’s commitment to providing continuous service as a basic necessity.
About Sudatel
Since its establishment on 7th March 1993, STG has steadily expanded from local to regional markets, serving as a notable example of successful privatisation policy.
STG’s vision is to be the most admired ICT provider. Their mission is to innovate extraordinary ICT services that improve people’s lives everywhere, achieve remarkable value for all stakeholders, and inspire talent across the entire organisation to lead with excellence.
Sudatel’s approach to social responsibility is rooted in an Islamic vision that integrates social rights as defined by Islam, extending beyond material aspects to include spiritual ones. Guided by successful human experiences and international humanitarian standards, Sudatel remains committed to ethical principles and reliable practices in all its dealings. The company is dedicated to contributing to economic development, enhancing the quality of life for its employees and their families, and ensuring community and environmental sustainability, all while staying true to its strategic goal of serving the community.
