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Mobile network operator MTN’s subscribers increased by 1.9% quarter-on-quarter with net additions of 4.1-million in the first quarter of this year, while active MTN mobile money users increased by 3.9% quarter-on-quarter to 22.7-million.
Subsequently, MTN’s service revenue increased by 9.1% and its data revenue by 26.9%, as it executed its dual-data strategy that ensures appropriate data coverage across the company’s footprint.
MTN South Africa’s service revenue increased by 2.5%, while the earnings before interest, taxes, depreciation and amortisation (Ebitda) margin increased by 150 basis points year-on-year to 35%.
The growth was supported by data and digital revenue, which increased by 12.1% and 17.7% respectively, while outgoing voice revenue decreased by 9.2%; data traffic increased by 49%, which was supported by a 14% increase in active data users.
MTN Nigeria’s service revenue grew by 14.4%, while its Ebitda margin increased by 340 basis points to 41.8%.
MTN Irancell’s service revenue grew by 15.2%.
MTN group president and CEO Rob Shuter commented that, during the quarter, the company continued to focus on operational execution across its markets, leveraging off the strong network investment of the past few years.
This allowed MTN to deliver an acceleration in service revenue growth to 9.1%, which was led by MTN Nigeria and MTN Ghana.
Group voice revenue growth of 5.4% for the quarter benefited from strong growth in Nigeria and Ghana of 15.2% and 20.6% respectively.
Meanwhile, the group-wide network investment enhanced data quality in metro areas in South Africa and Nigeria.
The company is also making progress on its initial public offerings (IPOs) in Nigeria and Ghana, which the company will conclude before the end of this year.
“On April 20, we received all required regulatory approvals to proceed with the IPO in Ghana, which we expect to launch in late May,” reported MTN.
In South Africa, MTN is engaging with authorities on the proposed amendments to the Electronic Communications Act to find a solution that would best deliver the most cost-effective coverage for South Africans, as well as much-needed resources for the national fiscus.
MTN’s share price on the JSE rose 1.7% on Thursday to R128, compared with Wednesday’s closing price of R126.