MTN’s first half adjusted headline earnings per share (HEPS) increased by 25% to 749 cents and adjusted return on equity (ROE) expanded by one percentage point to 24.4%. The acompany attributed HEPS – South Africa’s main profit gauge – rise to solid revenue growth and improved efficiencies,
These were in line with our medium-term guidance, said MTN.
MTN Group’s service revenue grew 15% to almost R108 billion in constant-currency terms.
“This was driven by increases in revenue from data services of 24% and from fintech services of 22%. Revenue from voice services increased 6% in the period,” said MTN.
At the end of June 2023, MTN Group had 292 million subscribers with whom it worked to create shared value.
The company said this subscriber base – 4% higher than the same period last year – benefited from lower data rates and improved access to broadband services.
“To facilitate the digital economy, we increased the number of active data users by more than 7% to nearly 140 million; reported a 19% increase in overall data traffic; and improved data affordability by reducing the average effective rate per megabyte by more than 22%.
“We continued to invest in world-class networks and platforms for the people of Africa, committing R17.2 billion in capital expenditure in the first six months of 2023. The Group’s balance sheet remained strong, with all key metrics well within the limits of our loan covenants.
In early trade, the shares of MTN soared 10% after the company reported resilient results, advanced its strategy by partnering with Mastercard on the MTN FinTech business, and progressed plans to exit Afghanistan.” This was achieved in a difficult operating environment marked by elevated inflation, weaker local currencies and regulatory developments across our 19 markets.”
MTN said continued to work to simplify our portfolio.
“The process for MTN Group to exit Afghanistan in an orderly fashion through the sale of our entire shareholding to Investcom AF, and affiliate company of M1, remains well on track,” said MTN.
“The transaction received conditional regulatory approval to proceed, pending the submission of relevant documentation to the Afghanistan Regulatory Authority.”
Also read: Mastercard Buys A Minority Stake In MTN’s FinTech Business Valued At R100 Billion
Mastercard has acquired a minority stake in MTN’s FinTech business valued at $5.2 billion or R100 billion.
Africa’s biggest mobile phone operator informed investors on Monday that Mastercard signed a memorandum of understanding which provides for a minority investment by Mastercard into its FinTech.
“Following the bespoke process to identify and potentially introduce strategic minority investors into MTN Group FinTech, we executed commercial agreements with Mastercard to support the acceleration and growth of our FinTech business’s payments and remittance services,” said MTN.
