Month: October 2019

MTN Group today announced sustained momentum in its results for the 9 months to September 2019 with service revenue growing 9,6% and its EBITDA margin improving by 0,6% to 35,1%. During the quarter the group added 3,5m subscribers and now serves 244 million customers across its 21 markets.

Commenting on the update, MTN Group CEO Rob Shuter said: “Service revenue growth and improvements in our EBITDA margin continued into the third quarter. We remain committed to driving access to internet and financial services and in Q3 we added 4.7 million active data users and 2.2 million Mobile Money subscribers across the portfolio. Our Ayoba messaging platform is now available across five markets and is already recording 515,000 active users per month.”

Overall, solid performances in Nigeria and Ghana offset the headwinds in South Africa, which was impacted by the weaker consumer demand and changes in ICASA’s End User Subscriber Service Charter Regulations which have impacted out-of-bundle (OOB) usage. Notwithstanding these pressures, in the third quarter MTN South Africa saw an improving trend in both prepaid and enterprise service revenues. Consumer post-paid in South Africa remained strong in a competitive market with service revenue growing at 5,8%.

At June 2019 MTN had not recognised R393 million of unpaid revenue from its roaming agreement with Cell C and an impairment of R211 million had also been raised. Since the end of June 2019 to date, Cell C has made payments amounting to nearly R750 million, in line with an agreed payment plan.  MTN has continued its conservative accounting for the Cell C roaming contract and only payments receive during the third quarter were processed, and all against the outstanding balances as at June 2019. We continue to work with Cell C on an expanded network deal and are seeing good progress to date.

Providing an update of the asset realisation programme (ARP) MTN Group CFO Ralph Mupita said: “As at June 2019 we had achieved R2.1bn of the 3-year R15 billion target announced in March this year. We continue to make steady progress in this regard and, following American Towers Corporation’s announcement of its acquisition of Eaton Towers, we are in advanced discussions to dispose of our 49% holdings in ATC Ghana and ATC Uganda which we value at between R7bn and R8bn.

The post IPO lock up period of Jumia, in which we have an 18.9% stake has expired and, as at 29 October, this stake is valued at approximately R1.4 billion. We also continue to await regulatory processes for the redemption of MTN Nigeria preference shares that have a value of $315 million for MTN Group. Finally, Econet’s unsolicited offer to acquire our 53% stake in Mascom has been terminated following certain conditions of the sale not being met.”

The Group expects an improved performance in South Africa in 2020 as the effects of the End User regulation on OOB usage moderate, the enterprise division returns to growth and the Cell C situation stabilises. We are confident that in Nigeria we will maintain service revenue and EBITDA growth in line with the medium-term guidance. This will be delivered as we improve our data revenue performance with increased 4G coverage as we utilise our 800 Mhz spectrum. We are also pushing ahead with our mobile money strategy through the super-agent licence, with 66,282 registered agents currently and a target of 100,000 by year end.

Shuter concludes: “Although conditions have been tougher in the year, we have sustained our performance in 2019 and looking forward, we are focussed on executing our BRIGHT strategy to deliver sustainable growth in our operations and to simplify our portfolio to reduce risk and improve returns. We remain resolute and committed to building our digital operator strategy and delivering on our medium-term targets and dividend policy.

MTN Group is supporting AfroChampions’ second conference on Sustainable Green Growth and Industrialisation, taking place in Kigali, Rwanda. The conference which started on 8 October, and concludes on 11 October, aims to encourage collaborations and partnerships that will accelerate the transformation of Africa under the selected topic.

Speaking about this partnership MTN Group President and CEO, Rob Shuter, said: “Since inception 25 years ago, MTN has had the opportunity, together with our host countries and communities, to build a legacy of changing lives within the markets that we operate. Our We’re Good Together initiative celebrates this partnership approach and partnering with AfroChampions is another way in which MTN can play its part in harnessing economic growth in Africa.”

“MTN believes in the potential of an Africa whose nations pursue deeper trade, integration and cooperation. Looking forward, the African Continental Free Trade Agreement as well as interventions such as AfroChampions will ensure that the continent operates as a single Africa, building easier trading conditions for businesses and easier movement of goods and services and therefore stimulating economic activity across the continent,” added Shuter.

Celebrating 25 years of Being Good Together

MTN Group today launched its “We’re good together” initiative. This is aimed at demonstrating how, in partnering with our host countries, we can change lives by improving digital access, driving financial inclusion, empowering and enabling SMEs, creating jobs and broad community development, among many others. As a pan African company with roots that are deeply anchored in the continent, MTN is telling its story that doing good business extends far beyond corporate social investment initiatives.

Speaking about the role of MTN on the continent, Group CEO and President Rob Shuter said: “To harness the potential of Africa and ensure our youth are productively employed we need affordable, safe and relevant digital services which are matched with the required digital skills. This in turn will support the global development agenda and national priorities. As one of the major infrastructure investors across Africa, MTN through partnership and collaboration, can accelerate this digital inclusion.”

The global telecommunications industry has made significant progress on the Sustainable Development Goals but more still needs to be done to bridge the digital divide and MTN is prepared to do its part. Since inception 25 years ago MTN has been a significant contributor to the economies and communities within which we operate. A lot of this has been with respect to the infrastructure that is the backbone of the economies that we operate in, and often, that enables connectivity of people in the most remote areas. Our operations have also increasingly become a broader part of the economy through varying efforts including employment creation as well as Mobile Money.
MTN Group Media release

“Over the last 25 years MTN has built high-speed networks covering 560 million people, created jobs for over 5 million people and through MTN Mobile Money connected 30 million people to the benefits of easy, cost-effective mobile financial services across the continent,” said Shuter.

MTN has also worked to use this extensive mobile reach and technology to enable access to education with the goal of promoting and enabling digital teaching and learning. This has been driven by our aim to empower students with the knowledge required to seize opportunities, improve their quality of life and realise their ambitions.

“MTN only succeeds if Africa succeeds. Being a partner in development also means that we have a responsibility to enable the youth to unlock economic opportunities in every country we operate in. We have therefore enhanced our focus on more actively demonstrating what can be achieved if we work together to enable a shared value system and drive a prosperous Africa,” added Shuter.