The COVID-19 pandemic negatively impacted SOTETEL’s activity in the first half of the year.
The subsidiary of Tunisie Telecom saw its half-yearly turnover fall by 43% to 13.2 million dinars, compared to 23 million a year earlier.
On the other hand, operating expenses fell by 31% to 16.2 million dinars, compared to 23.7 million at the end of June 2019.
Consequently, the operating result shows a deficit of 3 million dinars, compared to a deficit of 673 thousand dinars last year.
This increase in losses is mainly due to the lockdown that was decreed from March 22, 2020 due to the COVID-19 pandemic.
However, a normal resumption of activity was observed during the months of May and June, thanks to an effective recovery plan, the company said.
In addition to this, net financial expenses of 742 thousand dinars which shows a net loss of 3.65 million dinars, against a net loss of 1.5 million in 2019.
SOTETEL emphasizes that it is currently experiencing cash flow difficulties and is unable to honor all its commitments to third parties (in particular raw material suppliers and its subcontractors).
To cope with this difficult situation, the company has taken out a second bank loan (other than the COVID-19 loan) of 2 million dinars repayable over 30 months with a grace period of 3 months at the interest rate MMR +2.25%.
In the end, it is important to stress that the company’s ability to meet its commitments remains dependent on the achievement of the performance forecast for the second half of the year.