MTN Group reports ‘solid’ financial and operational performance in Q1

13 May 2022

South Africa-based regional carrier MTN Group said its consolidated service revenue came in ‘ahead of medium-term targets’, improving by 15.9% year-on-year to ZAR45.755 billion (USD2.8 billion), while Group EBITDA increased by 21.1%, with the EBITDA margin expanding by 2.2pp to 46.4%. In a brief quarterly trading update the company noted that its first-quarter performance ‘was supported by service revenue growth at our large operations, which was delivered in line with medium-term targets, and the disciplined execution of our expense efficiency programme’. In terms of other key financial highlights, it noted that Group data revenue surged 37.3% and fintech revenue climbed 21.2%, while legacy voice revenue was only up by 2.6%.

Operationally, MTN Group closed out 31 March 2022 with a total of 276.2 million mobile subscriptions across all its markets, up 3.2% y-o-y, although it noted that the low growth was impacted by new SIM registrations in Nigeria; excluding MTN Nigeria, subscriptions were up 3.9%, it said. Further, active data subscribers increased by 13.1% to 125.6 million and active mobile money (MoMo) customers rose a significant 25.9% to 58.7 million.

Commenting on the challenging operating environment, Group President and CEO, Ralph Mupita, said: ‘The MTN Group delivered a solid Q1 2022 performance, with double-digit service revenue growth and the expansion of the EBITDA margin supported by the focused execution of our Ambition 2025 strategy. This was delivered in a challenging macroeconomic environment in which we continued to navigate the impacts of COVID-19. Many of our markets have also experienced rising inflation and interest rates, and pressure on consumer spending driven by recent global events impacting food and energy prices in particular.’

South Africa, MTN Group