Telecommunications giant MTN Group has posted strong results for the third quarter ending September 30, 2021.

The group’s earnings before interest, taxes, depreciation and amortisation (Ebitda) increased 24.1%, while the group’s Ebitda margin improved to 45% in the period to September, from 42.9% in the corresponding period last year.

“The MTN Group recorded a solid third quarter 2021 trading performance, tracking positively against our medium-term targets with double-digit service revenue growth and the expansion of Ebitda margins. This was delivered through solid commercial momentum and the ongoing execution of our Ambition 2025 strategy in challenging Covid-19 macroeconomic and trading conditions,” said group president and CEO Ralph Mupita.

MTN Group’s service revenue increased 19.1% to R125-billion, driven by continued strong growth momentum in major markets Nigeria, Ghana and South Africa and supported by data and fintech service revenue increases of 34.5% and 35% respectively.

MTN South Africa’s service revenue expanded 7.7%, with an Ebitda margin of 41.6%, while MTN Nigeria’s service revenue increased 23.5%, with an Ebitda margin of 52.6%.

“Focused on driving our industry-leading connectivity business, we sustained voice revenue growth of 6.9%. Data revenue grew by 34.5%. It was supported by robust growth in data use, up 52.6%, and a 4.1-million addition to active data users in the quarter to reach 119-million, as demand for work-from-home services, digital entertainment as well as online education remained robust,” he noted.

MTN Group’s overall subscribers increased by 200 000 to 271.9-million, impacted by new SIM registration regulations in Nigeria.

Active MTN Mobile Money (MoMo) customers increased by 2.2-million to 51.1-million.

“We advanced financial inclusion, reaching 51-million MoMo customers in 16 markets, processing almost 20 000 transactions a minute, with the value of transactions up 67.2% year-on-year to $175.5-billion.”

Meanwhile, during the third quarter of the year, MTN also reduced debt and holding company leverage.

“We have made further progress in deleveraging our balance sheet faster. Group leverage was comfortably within covenant limits, having remained flat at 0.6x. Holdco leverage remained within our medium-term target, coming in at 1.2x, from 1.4x as at June 30, 2021,” Mupita commented.

“Material progress was made in accelerating the deleveraging of the holding company balance sheet, and our asset realisation programme and portfolio optimisation priorities are progressing well. The process of structurally separating our fintech and fibre assets remains on track.”

As part of MTN’s asset realisation programme, the listing of IHS was an important milestone, creating a liquidity platform for the future to deleverage further, he explained.

“Our further localisation in Uganda with the intention to sell 20% of the group’s holding in MTN Uganda is in progress.

“We are also announcing a public offer of just under 3% of shares in MTN Nigeria as part of the statement of intent communicated previously to further localise 14% of the group’s holding in MTN Nigeria over the medium term. MTN South Africa is making good progress with a sale and leaseback of its towers.”

MTN reported capital expenditure of R18.1-billion by the third quarter of the year, adding 2 578 third-generation, 6 906 fourth-generation and 409 fifth-generation sites.

“In the quarter, the headroom on our core data networks, at peak use, was about 24% in South Africa, 30% in Nigeria and 44% in Ghana. Upgrades are underway in these three markets, as well as others, ensuring that we are able to meet consumer and business demand,” Mupita concluded.