MTN Reports Mixed Revenue with Strong Subscriber Growth Amid Financial Stability

MTN, a leading pan-African mobile operator with the strategic vision of “Leading digital solutions for Africa’s progress,” has released its latest financial and operational results, showcasing a mixed revenue performance and strong subscriber growth. The company, which serves 288 million customers across 18 markets, underscores its commitment to providing the benefits of a modern connected life to all.

Despite facing a decrease in group service revenue by 18.8%, MTN saw a significant increase of 11.1% in underlying performance, thanks to robust growth in its fintech and data services. Voice revenue dropped by 32.2%, while data revenue saw a decline of 14.7%. However, fintech revenue surged by 11.4%, demonstrating a strong uptrend in digital financial services.

MTN’s total subscribers increased by 1.0% to reach 287.6 million, with active data subscribers rising by 7.8% to 149.2 million. The company also reported a 6.2% increase in active Mobile Money (MoMo) monthly active users, reaching 65.5 million. Data traffic grew impressively by 36.2% to 4,359PB, and fintech transaction volumes increased by 18.3% to 4.8 billion, with the transaction value up by 11.2% to USD 72.3 billion.

The company’s balance sheet remains strong, with a net-debt-to-EBITDA ratio of 0.5x as of March 31, 2024, well within the loan covenant limit of 2.5x. Despite foreign exchange impacts and lower cash upstreaming from operations, MTN maintained a healthy liquidity position with headroom of R39.1 billion.

Looking ahead, MTN acknowledges the challenging trading environment, with elevated inflation and local currency pressures in key markets, as well as the ongoing civil war in Sudan. Nonetheless, the company sees medium to long-term growth opportunities in data adoption and financial inclusion. MTN’s strategic focus includes driving service revenue recovery in South Africa, maintaining commercial momentum and operational efficiencies in Nigeria, and achieving operational excellence in Ghana.

MTN is also accelerating ecosystem growth through partnerships, such as its commercial initiatives with Mastercard, and exploring further localizations in Uganda and Ghana. The company is committed to improving operational efficiencies, targeting expense reductions of R7-8 billion over the next three years, and ensuring cash upstreaming from its operations to support financial flexibility and strategic goals.

Despite revising down its anticipated capex for 2024 due to reduced spending in Nigeria, MTN remains dedicated to executing its strategy to achieve its medium-term guidance and deliver sustainable growth across its markets.