A strong performance in key markets, notably Ghana and Nigeria, has helped boost MTN Group’s annual earnings in a year that the group surpassed the 300-million subscriber milestone.
Group earnings before interest, tax, depreciation and amortisation (EBITDA) before one-off items grew by 36.8% in constant currency to R98.5bn in the year ended in December, reflecting an expansion in margin by 5.4 percentage points to 44.5%. On a reported basis, EBITDA was up 64%.
Group revenue rose to R226.7bn from R188bn a year ago. Service revenue was 22.9% higher at R218.5bn on a reported basis and up 22.7% in constant currency, with data revenue up 37.7% on a reported basis and fintech revenue up 30%.
The group reported a profit after tax of R27.4bn after a loss of R10.9bn a year ago. Adjusted headline earnings per share was up 67% at 1,359c and a final dividend of 500c per share was declared, up 45%
Total customers grew 5.6% to 307.2 million, after MTN connected 16.3 million net new customers to its networks, with active data customers rising 9.4% to 172.6 million and mobile money (MoMo) monthly active customers up 10% to 69.5 million.
The group reported a 14.9% increase in fintech transaction volumes to 23.3 billion, with a transaction value of $500.3bn, up 37.6%.
“In the final year of our Ambition 2025 strategy, MTN Group is proud to have exceeded the 300-million-customer milestone, in alignment with our priority to deepen digital and financial inclusion in the markets we serve,” said CEO Ralph Mupita.
“We remain committed to leading digital solutions for Africa’s progress.”
He added that operationally, MTN delivered strong growth in earnings, free cash flow and improved returns. The performance was underpinned by improved macroeconomic conditions in key markets and driven by strong operational execution and disciplined capital allocation.
The group deployed capex of R38.5bn during the year to enhance the capacity, coverage and quality, including accelerated investment to support stronger growth in MTN Nigeria and MTN Ghana.
Operationally, MTN intends to remain focused on maintaining the robust performances in MTN Nigeria, MTN Ghana and MTN Uganda and the traction in various markets within its broader portfolio
“We will also continue driving the initiatives to improve the performance in MTN South Africa, particularly in prepaid.”
It said while current macro conditions are supportive of the business, it notes the rapidly evolving developments in global geopolitics.
“Notably, the conflicts in the Middle East, Ukraine and elsewhere create added uncertainty for global and local macro conditions, including potential impacts on indicators such as energy supply and prices, foreign exchange rate volatility and the trajectory of inflation in our markets. If sustained, the escalating geopolitical risks may adversely impact our operating environment and prospects, including our market guidance,” it said.
Source : www.businessday.co.za
