Latest news with #MTNGroupLtd
Yahoo
13-05-2025
- Business
- Yahoo
MTN Group Ltd (MTNOF) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Group Service Revenue Growth: 19.8% in constant currency for Q1. Data Revenue Growth: 28.7% in constant currency. Fintech Revenue Growth: 25.2% in constant currency. EBITDA Margin: 44.1% in constant currency, up 5.3 percentage points. MTN Nigeria Service Revenue Growth: 40.4% in constant currency. MTN Ghana Service Revenue Growth: 39.5% in constant currency. MTN South Africa Service Revenue Growth: 2.6% year on year. Subscriber Base: Approximately 297 million, up 4.7% year on year. Active Data Subscribers: Increased by 9.1% to 162 million. Fintech Transaction Volumes Growth: 13.9% increase. Fintech Transaction Values Growth: 48.9% increase. CapEx Deployment: 7.5 billion with a CapEx intensity of 15.2%. Liquidity Headroom: 38 billion rand as of March 31. Warning! GuruFocus has detected 8 Warning Signs with MTNOF. Release Date: May 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. MTN Group Ltd (MTNOF) reported a strong Q1 performance with a 19.8% increase in service revenue, driven by significant growth in data (28.7%) and fintech (25.2%). The company achieved a notable expansion in its EBITDA margin, which increased by 5.3 percentage points to 44.1% on a constant currency basis. MTN Group Ltd (MTNOF) saw a substantial increase in active data subscribers, up 9.1% to 162 million, and data traffic grew by 30.2% year on year. The fintech business showed robust growth, with transaction volumes increasing by 13.9% and transaction values by 48.9%, indicating strong demand for digital financial services. MTN Group Ltd (MTNOF) maintained a healthy balance sheet and liquidity position, with a consolidated net debt to EBITDA ratio of 0.7 times and a liquidity headroom of 38 billion rand as of March 31, 2025. MTN South Africa's service revenue growth was slower than expected at 2.6%, with prepaid performance under pressure due to competitive intensity. The company faces challenges in the South African market, particularly in the prepaid segment, where customer behavior remains value-seeking. Despite a 19.3% increase in data traffic, MTN South Africa's data revenue growth was only 3.9%, indicating potential pricing or competitive challenges. MTN Nigeria, while showing strong revenue growth, is still in negative equity, affecting its ability to declare dividends. The company is cautious about geopolitical risks and macroeconomic uncertainties that could impact its markets, particularly in relation to global aid funding and international trade. Q: Can you elaborate on the slow growth in South Africa's service revenue and EBITDA, and the competitive landscape in SA pre-paid? What would it take for SA Prepaid to grow at mid-single digits? A: Charles Molapisi, CEO of MTN South Africa, explained that Q1 and Q2 were expected to be under pressure, but interventions like dealer incentives and localized offers are in place. The competitive landscape is challenging, with Telkom leading in the pre-paid segment, particularly in Johannesburg. Recovery is expected in H2 as these initiatives take effect. Q: What drives your network sharing initiatives with Airtel? Is it only for owned towers or can this be executed in leased towers as well? A: Ralph Mupita, Group CEO, stated that the focus is on rural connectivity and quality of service obligations. The initiatives do not violate existing MLAs and primarily involve passive sharing, such as fiber and rural connectivity, rather than active sharing which could conflict with tower company agreements. Q: Can you provide details on the power partnership in South Africa with Vodacom? A: Charles Molapisi mentioned that Deloitte has been appointed to manage the partnership, focusing initially on energy security and rural coverage. The partnership aims to address regulatory concerns and improve service quality through collaboration. Q: What is the impact of the 199 rand 4G smartphone push on margins, and how is it being funded? A: Charles Molapisi explained that the initiative aims to migrate users from 2G/3G to 4G to optimize costs and spectrum use. MTN is not bearing the risk; a partner takes the risk, and they share the incremental revenue upside, with no upfront capital outlay from MTN. Q: Could you provide an update on the MasterCard transaction and the timing of the $200 million investment? A: Ralph Mupita stated that the separation of fintech operations in Ghana, Uganda, and Nigeria will trigger the investment. Once regulatory processes are complete, the funds will flow almost immediately, as agreed with MasterCard. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Zawya
21-04-2025
- Business
- Zawya
South Africa: MTN Group nets $30mln from sale of 1.5bn shares in Ugandan subsidiary
South Africa's MTN Group Ltd made a net gain of R564 million ($29.76 million) from the sale of its 1.57 billion shares in the Ugandan subsidiary despite offering the stake at a substantial discount in a bid to comply with a requirement to offload a minimum stake of 20 percent to minority investors. Latest disclosures through the company's audited financial statements (2024) show that the proceeds generated from the sale of the shares (net of taxes and transaction costs) amounted to R1.03 billion ($54.67 million) resulting in a net gain of R564 million ($29.76 million).'Proceeds generated from the sale of shares, (net of taxes and transaction costs) amounted to Ush214 billion (R1 036 million). This resulted in a net gain of R564 million recognised in equity as a transaction with non-controlling interests,' the group says. The group disposed of 7.03 percent stake equivalent to 1. 57 billion shares in MTN Uganda as part of its localisation plan that reduced its shareholding in the subsidiary to 76.02 percent from 83.05 percent. The transaction which was completed in June last year (2024) came after the group managed to sell a 12.97 percent stake in MTN Uganda in November 2021 through an initial public offering (IPO) that was priced at Ush200 ($0.05). The share sale in the secondary market aimed to help MTN comply with Uganda's local ownership rule that requires foreign telcos operating in the country to cede at least 20 percent shareholding to the public through the stock market. The offer which ran between May and June 10, 2024, was priced at discount of Ush170 ($0.04) per share compared to the original IPO price of Ush200 ($0.05) per share. The company also offered 30 free shares for every 140 shares allocated with the incentive shares amounting to a significant discount and making the secondary offer more generous than the IPO. Consequently, the sale of the additional shares was oversubscribed by 2.3 times, receiving subscription of three billion shares, reflecting the impact of the incentives that included free shares. In 2019 the Ugandan government directed foreign-owned telecoms operating in the country to list at least 20 percent of their shares on the local bourse within two years to boost Ugandan ownership in the sectorThe policy shift put pressure on multinationals operating in the country such as MTN, Airtel and Lycamobile to sell shares to the public. President Yoweri Museveni complained that the country was draining its scarce foreign exchange reserves through foreign-owned telecoms repatriating their profits abroad. Last year Airtel Africa Plc disclosed that it will also sell additional shares amounting to a 9.11 percent stake in its Ugandan subsidiary through a secondary offer to comply with Kampala's listing requirements. The multinational in November 2023 managed to sell 4.35 billion shares equivalent to a 10.89 percent stake in Airtel Uganda's initial public offering (IPO) and failed to meet the ownership rule. Airtel Africa said it had received a regulatory extension to sell the balance of 3.64 billion shares by November 2026, a move that will see it replicate MTN group which successfully offloaded a 20 percent stake in MTN Uganda in two transactions including a secondary offer conclude in June 2024Airtel Africa sold its shares at a price of Ush100 ($0.02) per share in the IPO that also offered incentive shares on a band subscription volume to attract investors. Retail investors who applied for more than 2,500 shares, for instance, received 10 free shares for each 100 shares allocated while institutional investors who applied for at least 1.85 billion shares were offered 112 free shares for each 100 shares allocated. MTN group's operations in the continent have faced several challenges including the conflict in Sudan's capital Khartoum which started on April 15, 2023, between Sudanese Armed Forces and the Rapid Support Forces leading to the destruction of state-owned infrastructure in the city. The ongoing conflict in Khartoum has resulted in loss of revenue and earnings for MTN's subsidiary due to prolonged hyperinflationary environment leading to an impairment of R11. 72 billion ($618.66 million) relating to MTN Sudan's non-current assets.'Accordingly, the future economic benefits that can be derived from MTN Sudan's operations have declined,' the group says. Last year (2024) the group gained R1.3 billion ($68.61 million) from the sale of subsidiaries in Afghanistan and Guinea-Bissau and a loss of R1.9 billion ($100.27 million) on the sale of a subsidiary in Guinea-Conakry. The sale of MTN Guinea-Bissau and MTN Guinea-Conakry was concluded on August 1, 2024, and December 30, 2024, respectivelyThe group also disposed of 686 million shares in MTN Ghana to Ghanaian citizens as part of the Group's localisation strategy reducing the group's shareholding to 73.99 percent from 81.04 percent. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. ( James Anyanzwa
Yahoo
18-03-2025
- Business
- Yahoo
MTN Group Ltd (MTNOF) (FY 2024) Earnings Call Highlights: Strong Revenue Growth Amidst ...
Service Revenue Growth: 13.8% year-on-year in constant currency; excluding Sudan, 14.4%. Data Revenue Growth: 21.9% year-on-year in constant currency. Fintech Revenue Growth: 28.5% year-on-year. EBITDA Margin: Improved to 39.9% in H2 from 36.5% in H1. Adjusted Headline Earnings Per Share: ZAR8.16, down from ZAR3.15 per share last year. Dividend: Approved at ZAR3.45 per share, with an anticipated increase to ZAR3.70 for FY2025. Group Leverage: 0.7 times net debt to EBITDA. Holdco Leverage: 1.4 times, within the guided range. Cash Upstreaming: ZAR14 billion for the year, with ZAR7.5 billion in H2. CapEx: ZAR29.9 billion excluding leases, with a CapEx intensity of 15.9%. South Africa Service Revenue Growth: 3.1% year-on-year. Nigeria Service Revenue Growth: 35.6% in constant currency. Uganda Service Revenue Growth: 19.6% with a margin of 52%. Ghana Service Revenue Growth: 34% with a margin in the upper 50%. Warning! GuruFocus has detected 8 Warning Signs with MTNOF. Release Date: March 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. MTN Group Ltd (MTNOF) reported strong service revenue growth of 13.8% in constant currency, with a notable acceleration to 15.5% in the second half of 2024. The company achieved a significant improvement in free cash flow in the second half of the year, reaching ZAR21.5 billion compared to ZAR9.9 billion in the first half. MTN Group Ltd (MTNOF) successfully renegotiated tower lease agreements in Nigeria, realizing savings of ZAR1.3 billion in operating expenses. The fintech segment showed robust growth, with service revenue rising by 28.5% and advanced services growing by 52% year-on-year. The company maintained a strong balance sheet with Group net debt to EBITDA at 0.7 times, well within the loan covenant limit of 2.5 times. MTN Group Ltd (MTNOF) faced significant macroeconomic challenges, including the sharp devaluation of the naira, which negatively impacted reported earnings. The company reported a decline in reported EBITDA by 33.5% due to currency volatility and inflationary pressures. MTN Nigeria experienced a decline in EBITDA margin by 10.3 percentage points to 38.9%, primarily due to the naira devaluation and high inflation. The South African prepaid segment underperformed, with the company acknowledging the need for improvement in specific regions. MTN Group Ltd (MTNOF) faced operational challenges in Sudan due to ongoing conflict, resulting in a ZAR11.7 billion impairment. Q: Can you explain the impact of currency translation on your earnings and whether this is a target for future performance? A: Tsholofelo B. L. Molefe, Group CFO, explained that the ZAR18 earnings figure was an illustrative translation impact, showing what earnings would have been without currency effects. It is not a target, and the company maintains its guidance of mid-teens growth. Q: What are your plans for CapEx in South Africa, given the competitive landscape and recent market share losses? A: Ralph Mupita, Group CEO, stated that the CapEx in South Africa will decrease from ZAR9.8 billion to ZAR6.3 billion, excluding resilience investments. The focus will be on targeted 5G rollout and maintaining network growth without excessive spending. Q: What is the outlook for MTN Nigeria's tariff hikes and their impact on service revenue? A: Karl Toriola, CEO of MTN Nigeria, mentioned that a 50% tariff increase was approved, which is being implemented gradually. The company expects strong elasticity of demand and anticipates service revenue growth in line with guidance. Q: How is MTN addressing the challenges with MoMo PSB in Nigeria? A: Ralph Mupita noted that the PSB license is limiting, and MTN is exploring additional licenses and strategies to compete effectively in Nigeria's fintech market. The focus will be on expanding services beyond basic transactions. Q: What are MTN's plans for the 2026 Eurobond maturity? A: Tsholofelo B. L. Molefe stated that MTN aims to reduce dollar-denominated debt and will assess options for the Eurobond maturity by October 2025, with plans to communicate their strategy in due course. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Bloomberg
17-03-2025
- Business
- Bloomberg
MTN Dividend Exceeds Estimate; Posts Record Loss
MTN Group Ltd. beat dividend estimates even after Africa's biggest wireless company by revenue posted a record loss because of currency devaluations. The Johannesburg-based company said it would pay a dividend of 3.45 rand a share, compared with a survey of Bloomberg analyst of 3.35 rand a share. MTN posted a net loss of 9.59 billion rand ($526 million) for the year ended Dec. 31. That compares with a 3.87 billion-rand loss forecast by four analysts surveyed by Bloomberg.
Bloomberg
28-02-2025
- Business
- Bloomberg
MTN Nigeria Stock Price Hit as Naira Devaluation Inflcits Another Loss
The Nigerian unit of MTN Group Ltd fell the most in 10 months in Lagos before recovering, as investors reacted to a second year of loss caused by a sharp devaluation of the naira. Shares in MTN Nigeria Communications Plc retreated 9.1% to a low of 240 naira, the most since April 24, 2024, before rebounding to trade unchanged on the session.
