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MTN, in partnership with a vendor management AI tool, embarked on a site optimisation platform proof of concept in 2019. The platform aims to reduce costs, ensure resilience and reduce MTN’s carbon footprint.

The vendor management platform first identifies built-in problems on each site upon installation. On a day-to-day basis the platform uses AI to optimise power usage of each tower site by monitoring the real-time status of site components including grid availability, battery life, solar availability and generator fuel levels. The platform then uses IBM Watson™ AI to choose the lowest cost and lowest environmental impact power source based on site characteristics and historic performance.

The platform automatic selection of power sources has resulted in an initial 53% reduction in CO2 emissions through the proof of concept process. Not only did the  platform reduce negative environmental impacts, it also resulted in zero network downtime and continuously drives improvements across our infrastructure. We are very optimistic about these findings and the role AI stands to play at the heart of MTN’s infrastructure programme.

MTN is delighted to announce that it remains the ‘Most Admired African Brand’ based on spontaneous consumer responses in Brand Africa 100: Africa’s Best Brands 2020 survey released on Monday. MTN is also the only African brand in the rankings of the ‘Most Admired Brands in Africa’.

In a survey carried out in 27 countries, representing around 80% of the population and the GDP of Africa, the group is now also considered one of the continent’s most admired media brands. MTN Mobile Money – through which MTN provides more than 35 million Africans access to financial services – remains one of Africa’s most admired finance brands. The Group also maintained its top position in the telecoms provider category.

“We are thrilled to receive these accolades as the continent celebrates Africa Day,” said Group President and CEO Rob Shuter. “They endorse the work that we are doing to build a digital operator, moving our customers from a voice-centric world into the world of mobile data, digital services and financial services by using the power of the internet.”

“Achieving the best brand in our markets is a critical part of our BRIGHT strategy. I would like to thank all our customers and communities for the trust that they have shown in us. It encourages us to work harder every day to deliver on our belief that everyone deserves the benefits of a modern connected life.”

MTN Group today announced a positive service revenue trajectory in the first quarter financial results for the year ended 31 March 2020

Speaking on the results MTN Group president and CEO, Rob Shuter said: “The effects of the COVID-19 pandemic on the global economy have brought about unprecedented uncertainty, volatility and challenges which are impacting our markets at both the socio-economic and macro-economic levels. The impact of the pandemic on our quarter one performance was not significant as lockdown restrictions for our consolidated subsidiaries were only implemented from the last week of March 2020.

We continued to build commercial momentum adding 6,6 million subscribers in the quarter, with active data users increasing by 2,9 million and MoMo subscribers by 0,4 million. We continued to scale our Ayoba platform recording 2,6 million monthly active users. We accelerated our MoMo agency network in Nigeria, under our super-agent licence, adding 70 000 agents in the first quarter, bringing the total number of registered agents to 178 000.

On strategic progress, the digital business returned to growth, booking 15.6% in the quarter. In MTN SA the enterprise business recorded its second quarter of growth and in May we commenced phase 2 of the national roaming agreement with Cell C and look forward to a continued partnership.

In these difficult times we continue to focus on our key priorities: looking after our people, our customers and our networks while we focus on efficiencies. For our people, the immediate priority is their health and safety, where the work-from-home programmes across our markets empower our staff to work remotely while ensuring continuity in our operations. For our customers, we have ramped up our digital channels as a service alternative, to enable them to continue purchasing airtime and accessing our products and services seamlessly as well as launching Y’ello Hope Packages in most of our markets.

Our various initiatives support governments across our markets with communication systems and connectivity as we do our part to help minimise the economic and social impact.

The COVID-19 situation is an evolving one and will undoubtedly impact the year ahead. Given the uncertainties associated with the duration and economic impact of the pandemic, it is difficult to reliably quantify the direct and indirect financial impacts on the business at this early stage. The group will continue to focus on business continuity and efficiency, and we have implemented strict measures to preserve resources and strengthen our resilience.”

Financial Performance

For the first quarter, MTN delivered a solid performance increasing constant currency service revenue by 11,1% and EBITDA by 15,6% with EBITDA margin improving by 2,1pp to 43,2%, in line with medium-term targets. The group recorded voice, data and fintech revenue growth of 6,3%, 26,4% and 26,0% respectively as we continued to execute on our strategic objectives and progress toward becoming a digital operator. Digital revenue has returned to growth, increasing by 15,6%.

MTN Group CFO, Ralph Mupita concluded, “We are encouraged by the service revenue growth of 11.1% which we achieved on a constant currency basis, this translated to 16.5% on a reported basis. Good cost control across the group supported the increase in group EBITDA margins, with a particular strong performance from MTN Ghana. Notwithstanding the impacts of COVID-19 in the first quarter, the balance sheet remained resilient and our cash and committed undrawn facilities was approximately R45 billion at the holding company level, providing us with sufficient liquidity during these uncertain and unprecedented times.

We have experienced a continued surge in data traffic during the month of April, but voice traffic and mobile money transactions were under pressure given various lockdown measures taken across markets. Where lockdown measures have been lifted or relaxed recently, voice recharges and mobile money transaction volumes have improved. For now, we are maintaining our 3 – 5 years medium-term guidance but will update the capital markets in August of any changes when we release our H1 2020 results.”

Looking ahead

The current environment is marked by significant uncertainties. It is still too early to assess the economic impact of the pandemic on our customers and reliably quantify the direct or indirect financial effects on our business. The remainder of the year will be shaped by the ramifications of the pandemic, and we will continue to update all stakeholders as the effects become clearer.

We are not only focused on managing the risks brought about by COVID-19, but also on the opportunities it creates in the accelerated digitalization it has brought about. We believe we are well positioned as a company to benefit from this evolution, especially given our focus on growth in our data, digital and financial services businesses. The Group remains focused on the execution of our BRIGHT strategy to deliver sustainable growth in our operations and value to our stakeholders.

MTN Group (MTN) has asked a United States court to terminate the case filed against it on December 27, 2019, asserting claims for civil monetary relief under the U.S. Anti-Terrorism Act.

As stated in the formal written document submitted to the U.S. court by MTN’s legal counsel, entitled a “motion to dismiss,” MTN requested the court to end the lawsuit and grant a judgment in MTN’s favour for two independent reasons: because the court lacks jurisdiction over MTN, which does not operate in the United States, and because the complaint does not allege any conduct by MTN that would have violated the Anti-Terrorism Act.

Under U.S. law and procedures, MTN is not permitted at this stage of the lawsuit to challenge or contest the factual allegations made against the company, so the motion to dismiss focuses on the lack of jurisdiction and the legal insufficiency of the claims.

MTN has deep sympathy for those who have been injured or lost loved ones as a result of the tragic conflict in Afghanistan. As stated in the motion to dismiss, however, “the MTN Defendants are not the extremists that caused Plaintiffs’ tragic losses and injuries. To the contrary, MTN Afghanistan has been lauded by the World Bank for expanding telecommunications services to the impoverished people of Afghanistan and has itself been a target of violence in the devastating conflict in that war-torn country. Put simply, Plaintiffs have sued the wrong defendants in the wrong court based on insufficient allegations.”

MTN remains of the view that it conducts its business in a responsible and compliant manner in all its territories and, as reflected in the motion to dismiss, intends to defend its position accordingly.

MTN Group today announced details of its R250 million relief package in response to the COVID-19 pandemic.  Operating across 21 markets MTN Group has customised its response to recognize its responsibility to contribute both in its home market South Africa as well as in many other markets facing enormous challenges managing the pandemic. Comprising five key intervention initiatives, the Group has focused on employees, customers, vulnerable groups, contributions to the South African Government’s Solidarity Fund and participating in industry interventions.

“We believe it is the responsibility of all organisations to assist where they can during the pandemic.  MTN plays a vital role in the mobile and telecommunications industry across Africa and the Middle East and it is vital that we assist our employees, customers and stakeholders during this difficult time,” said Mcebisi Jonas, the Chairman of MTN Group. Believing that charity “begins at home”, the Group plans to raise R40 million for the MTN Global Staff Emergency Fund for employees in need.

The funds will be raised by contributions from the Group’s directors, managers and general staff. The Chairman, Group CEO, Group CFO and a number of MTN Group directors have pledged 30% of their board fees and salaries for the next three months. The executive teams of both MTN Group and MTN South Africa have also contributed to the fund. In addition, other staff members can also contribute by making salary sacrifices.

Furthermore, over R150 million will be invested in the Y’ello Hope Package for customers – that includes free SMS services, the waiving of fees for certain mobile money transactions, discounted calling during off-peak periods, zero-rating of certain health, social services and educational sites and payment concessions to our business customers. “Utilising our services and technologies for the greater good is key at the moment.  We can positively impact millions of lives and our main focus is on keeping our network in good working order and enable our customers to connect with their loved ones during this most difficult time for all,” said Rob Shuter, MTN Group President and CEO.

MTN is also mobilising the work of the MTN Foundations across the markets to reach those most vulnerable through contributions towards tackling health emergencies to minimise the spread of COVID-19 (Disease Commodity Packages and ICT services needed for Health Ministries and Health professionals); and enabling students to remain productive by accessing vital school and university content with a total contribution of at least R50 million.

MTN was born at the dawn of South African democracy and owes its heritage to the place of its birth.  MTN Group will also contribute R10 million to the South African Government’s Solidarity Fund. MTN will also leverage its knowledge and infrastructure in the continued participation in the many forums that have been set up to assist those in need.

 

MTN has been awarded the most valuable telecom brand in Africa in a recent annual report by Brand Finance, a leading independent brand valuation consultancy. The report stated that MTN’s brand value was boosted by a solid overall performance for the year, despite challenging economic conditions and regulatory challenges in some markets.

Brand finance also recognised MTN for its focus on customers and providing a high-quality service across all its markets. “Amid these unprecedented times in fighting a global pandemic, MTN Group is humbled by the Brand Finance recognition and our progress in rising up through the ranks of this year’s Telecoms 150 report” said MTN President and Group CEO, Rob Shuter.

Brand Finance CEO, David Haigh commented: “MTN is to be commended for its performance in its home market as well as further afield. They are increasingly recognised throughout Africa by their customers as providing high quality service, because their brand image is deeply rooted on more than just marketing campaigns”

Brand Finance acknowledged MTN’s BRIGHT strategy to grow revenues through data and digital, while also focusing on growing its subscriber base. It upgraded MTN’s brand strength rating from AAA- to AAA, in recognition of an increasingly strong leadership position in telecommunication services throughout Africa and the other markets within which it operates, as well as increasingly resilient network investments.

The report noted a negative global impact on the brand value of the world’s biggest telecom companies which are set to be impacted by the Coronavirus outbreak.  “We have built a sound, robust and resilient organisation that can and will weather the storm before us. As a Group, we are taking the decisive steps required to persevere in our MTN spirit of togetherness and a positive, can-do attitude,” concluded Shuter.

 

MTN Group today published its Group Integrated, Sustainability and Tax Reports for the year ending 31 December 2019, illustrating the significant economic and social impact it has delivered through the group to the markets it operates in across Africa and the Middle East. The three reports set out how the company delivered growth and unlocked value by continuing to focus on executing its BRIGHT strategy. They also show how MTN operations strive to ensure that all who are touched by our products and services are positively impacted.

Delivering on our strategy in a more agile way

Our 2019 Integrated report highlights the progress we have made against our strategy and the value created by developing and distributing a range of innovative and reliable communication products and services. We also share our intention to harness the pioneering spirit MTN has built over the last 25 years to accelerate the implementation of our strategy in a more agile way in close collaboration with our many partners, with whom we are #GoodTogether.

Key highlights:

• The work we have done on strengthening our operations and balance sheet over the last few years positions us well to weather the more turbulent operating environment.
• Given the progress and momentum we have seen in our commercial, strategic and financial initiatives, we have enhanced our medium-term guidance framework.
• While we maintain our service revenue growth, EBITDA margin improvement, capex intensity reduction and ROE improvement targets, we have increased our targets for the next three to five years to secure at least a further R25 billion in asset realisations which will further moderate our leverage ratios.

Contributing to infrastructure and government revenue

The infrastructure we build supports the development of the technology which boosts local economies. MTN invested R26 billion in its networks and systems in 2019. MTN is also among the largest taxpayers in many of our markets and MTN’s tax contributions for the year under review amounted to R31 billion, up from R24 billion in 2018. Tax contributions include corporate taxes, indirect taxes, withholding taxes, payroll taxes, operating licence fees and other payments to government authorities.

This stemmed from contributions made in South Africa of R4,6 billion, Nigeria of R6,7 billion, SEAGHA of R9,3 billion, WECA of R6,7 billion and MENA of R3,2 billion.

PwC Building Public Trust Award

Our 2018 tax report was selected from the tax reports of the top 100 JSE listed companies. An independent panel of judges reviewed the tax reports and MTN was awarded first place for the PwC Building Public Trust Award amongst South African based multinational companies. This award is given for excellence in tax reporting.

Driving broader socio-economic benefits to society

“To make an impact on meeting the UN SDGs by 2030, we need to deepen our focus, acting collectively and decisively. Having often reflected on this objective, I believe we can achieve this if we come together through our connected and shared humanity to collaborate effectively through partnerships,” said MTN President and Group CEO Rob Shuter.

“What we are most proud of are the partnerships we have made and the impact they have had. Three in particular come to mind: 1) Rapid rural roll-out programme (R3) with our various partners, in 2019 we saw over 1300 sites reaching 6,9 million people, 2) Internet Watch Foundation partnership to make children safer online, we successfully blocked 2 million URLs containing child sexual abuse material, 3) Signing up to the GSMA-led industry-wide plan to achieve net-zero GHG emissions by 2050  in line with the Paris Agreement.”

We view sustainability as an integral part of MTN’s value creation journey now and into the future. We strive to create and protect shared value for our stakeholders through responsible economic, environmental and social practices. Key points from the 2019 Sustainability report are as follows:

• Environmental: MTN recorded its highest ever greenhouse gases saved/avoided at 28 889 tonnes of carbon dioxide equivalent (tCo₂e) in 2019, despite an increase in our energy consumption due to the growth in our network.
• Social: We reached over 1,9 million beneficiaries through our Corporate Social Investment across our footprint, over 400 000 of which were women and over 300 000 youth.
• Governance: MTN adheres to a culture of sound ethical business conduct – over 10 000 ethics e-learning completion by staff, over 1 800 vendors prequalified following due diligence process and over 130 calls to tip-offs anonymous whistle-blower line, a significant increase from previous years.
• Economic: Through our CHASE model, we are driving smartphone adoption with over 675 000 affordable low-cost smartphones distributed in 2019 alone. We also witnessed a 39% reduction in the group’s effective rate per megabyte.

Rob added that: “Access to the internet has the power to change lives and bridge inequalities, we are contributing to accelerating digital and financial inclusion by connecting the unconnected. We believe that by contributing to the prosperity of Africa and the Middle East, we are creating shared value for all.

Another key example of this: MTN’s Mobile money and Homeland solutions which are not only facilitating the flow of money into Africa from the Diaspora, but between different regions in Africa, setting the stage to enable African Continental Free Trade Area’s vision of creating a single market across the African continent.” 

MTN’s response to COVID-19

As business and society, we are seeing a concerning increase in the transmissions of COVID-19 cases across multiple countries. To mitigate its impact, we are implementing several measures to support our employees, customers, partners, communities and our business during this time of uncertainty for all of us. These measures include the establishment of a Global Staff-Care Emergency Fund which will be utilised for preventative health and safety, treatment, and emergency lockdown sustenance provisions. We are also rolling out relief products and services under the ‘Y’ello Hope Crisis Package’ umbrella across MTN to enable customers to access critical health and education information, and mobile money services. Our investment focus at this time is on resilience and capacity in our networks.

“As I write, we are in the midst of the COVID-19 pandemic and there is much uncertainty as to how and when society will emerge from it. The impact of COVID-19 on worldwide economies is challenging and our commitment remains steadfast to do all we can to minimise the economic and social impact across our markets. MTN Group cares because MTNers care – we have dynamic and passionate employees who continue to empower us to reach new heights in our journey,” concluded Rob.

Click here to access the reports.

Further to the announcements on 4 December 2019 and 12 December 2019, MTN SA has today announced the outcomes from its engagements with the CompCom and response to its Data Service Market Inquiry. MTN SA has developed a set of voluntary undertakings in the form of a social compact to further address the affordability of data services for its customers and MTN remains in discussion with the CompCom on the options to formalise these elective solutions and the implementation thereof.

Included in these initiatives are three areas which focus on deepening MTN’s ongoing drive to reduce the cost to communicate. These are: the affordability of monthly prepaid bundles, lifeline data and the zero-rating of data for public benefit service websites.

Click here for further details: https://www.mtn.com/investors/shareholders/sens/category-sens/?sens_year=2020