MTN now processes up to R5.2 trillion worth of transactions via its fintech platforms while investments in smartphone adoption pushed up data consumption, helping the company to lift half-year service revenues by 9.7% to R115.3 billion.
Over the half-year period to the end of June, registered users across MTN’s 19 markets grew by 6.7% to 317.7 million. Of this, active data subscribers increased by 9.1% to 179.3m, with data traffic leaping up 22.8%.
MTN attributed the growth in total users and active data subscribers to continued investment in network quality, customer experience, and digital platforms, increased engagement, as well as higher network usage across the group.
It invested R19.7bn in capital expenditure during the period as it enhanced network capacity, coverage, and quality across its markets.
As a result of the stronger subscriber base, data revenues firmed up by 21% to R57.6bn, although voice revenues decreased by 3.8% to R30.4bn.
Mobile Money (MoMo) monthly active users strengthened 12.1% to 70.8 million. Subsequently, fintech transaction volumes for MTN went up 17.2% to R13bn. After the value of transactions leaped 33.8% in constant currency to $330.bn, fintech revenues for the half grew by 13.3% to R14.9bn on a constant currency basis.
Continued growth in smartphone adoption, increased digital engagement, and stronger customer usage supported robust growth in data traffic and further increased data's contribution to group service revenue, it said.
This brought group service revenue for the half-year to R115.3bn, 17.5% higher compared to the previous year’s contrasting period.
The service revenue growth was led by MTN Ghana and MTN Nigeria. Reported headline earnings per share for the half-year decreased by 5.8% to R6.15, although on an adjusted basis HEPS went up by 21.3% to R7.93. The company did not declare an interim dividend.
“We combined double-digit service revenue growth with record earnings before interest tax depreciation and amortisation (EBITDA) margins, robust FCF (free cash flow) generation, and a resilient balance sheet. This performance reflects disciplined execution, the quality of our diversified portfolio, and sustained investment in our networks, platforms, and customer experience,” said MTN CEO, Ralph Mupita.
MTN expects service revenues to accelerate in the second half on the back of normalisation of airtime lending in Nigeria and the annualisation of the 2025 price adjustments in the same market. In South Africa and Nigeria, MTN expects the consumer prepaid business to show growth in addition to continued momentum from MTN Ghana and across Francophone Africa portfolios.
MTN reached an agreement in Syria for the settlement terms relating to the telco’s divestment from the country. This brings to an end a prolonged dispute sparked by the placement of the company’s local operating unit under judicial guardianship in 2021. MTN expects to pay $43.9m in total settlement fees on finalisation of the dispute. It said “remaining legal formalities” are currently being completed.
Nonetheless, operating free cash flow for the half-year under review increased 27.5% to R25.1bn, supported by “robust operational performance and disciplined capital” allocation.“
We maintain sufficient liquidity to address our funding requirements in the upcoming period, including the forthcoming Eurobond maturity. Furthermore, financing arrangements are in place to consummate the IHS transaction,” said the company.
MTN has also embarked on a R6bn share repurchase programme. Liquidity headroom was maintained at R39.1bn compared to R43.1bn for the previous year’s comparative period and supported by cash R13.9bn in up-streamed cash. This was led by MTN Ghana and MTN South Africa while the company also raised R2.3bn under its domestic medium-term note (DMTN) programme to refinance upcoming maturities for the year.
The National