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In the first half of 2023, MTN Group achieved resilient results, advanced the company's strategy through collaboration with Mastercard for the MTN fintech business and progressed plans to exit Afghanistan. These accomplishments occurred within a challenging operating environment marked by heightened inflation, weaker local currencies, and regulatory changes across the Group's 19 markets.

MTN Group President and CEO, Ralph Mupita, stated, "A resilient performance in H1 23 and substantial strategic progress were made against a demanding macro backdrop."

During this period, service revenue for MTN Group expanded by 15% to nearly R108 billion in constant-currency terms. This growth was driven by a 24% increase in revenue from data services and a 22% increase from fintech services. Voice services revenue also rose by 6%.

As of June 2023, the subscriber base reached 292 million, a 4% increase compared to the same period the previous year. MTN Group prioritized shared value creation for these subscribers, enhancing their experience through lowered data rates and improved broadband access.

To support the digital economy, MTN Group amplified the count of active data users by over 7%, reaching nearly 140 million. Overall data traffic surged by 19%, while data affordability improved by reducing the average effective rate per megabyte by over 22%.

Significant investments were made in developing top-tier networks and platforms for Africa, with a capital expenditure commitment of R17.2 billion in the initial six months of 2023. The Group's financial position remained robust, adhering to the limits of its loan covenants.

Driven by robust revenue growth and increased efficiencies, adjusted headline earnings per share (HEPS) surged by 25% to 749 cents, and adjusted return on equity (ROE) expanded by one percentage point to 24.4%, aligning with medium-term guidance.

The MTN Group Fintech business experienced rapid expansion, with transaction volume rising by 37% to 8.3 billion in the first half of the year. These transactions were carried out by 61 million active MoMo customers.

In terms of MTN Group's collaboration with Mastercard, commercial agreements were executed to bolster the growth of its fintech business's payments and remittance services. A memorandum of understanding was also signed, outlining a minority investment by Mastercard into Group Fintech based on a total enterprise valuation of approximately US$5.2 billion. Definitive investment agreements are set to be finalized soon, with the investment closure subject to customary conditions.

Efforts were also focused on portfolio simplification. The plan for MTN Group's orderly exit from Afghanistan through the sale of its shareholding to Investcom AF, an affiliate of M1, remained on track. Regulatory approval is pending completion upon submission of relevant documents to the Afghanistan Regulatory Authority.

Looking ahead, MTN will continue to work towards creating shared value across its markets.

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