MTN posts strong Q1 performance

13th May 2022 By: Natasha Odendaal - Creamer Media Senior Deputy Editor

MTN posts strong Q1 performance

Photo by: Reuters

Telecommunications group MTN has reported a strong first quarter, delivering double-digit service revenue growth and expanding earnings before interest, tax, depreciation and amortisation (Ebitda) margins.

During the three months to March 31, group Ebitda increased by 21.1%, with the Ebitda margin expanding by 2.2 percentage points to 46.4%.

“This 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,” the company said in its quarterly update on Friday.

Group service revenue increased 15.9% to R45.7-billion during the quarter under review, with voice revenue up by 2.6%, data revenue up by 37.3% and fintech revenue up by 21.2%.

MTN South Africa’s service revenue increased 4.6%, with an Ebitda margin increase from 39.8% to 39.9%, while MTN Nigeria’s service revenue increased 22%, with its Ebitda margin increasing from 53.1% to 54.6%.

During the quarter, MTN’s overall subscribers increased by 3.2% to 276.2-million, impacted by new SIM registration regulations in Nigeria. Excluding this impact, subscribers increased by 3.9%.

MTN Nigeria, however, added 1.7-million subscribers during the first quarter, demonstrating good momentum on the one-million in net additions reported for the fourth quarter of 2021.

MTN Group’s active data subscribers increased by 13.1% to 125.6-million, while active mobile money (MoMo) customers increased by 25.9% to 58.7-million, with the value of transactions increasing 12.6% to $59.9-billion and the volume of transactions processed increasing 32.5% to 2.9-billion transactions.

The number of active merchants accepting MoMo payments increased 46.8% year-on-year to 765 211 and the total value of MoMo merchant payments rose by 125.2% to $4.3-billion.

At the end of first quarter of 2022, MTN’s InsurTech platform had 17.4-million registered aYo policies, reflecting growth of 37.8% year-on-year.

“We are encouraged by the healthy performance delivered across our markets in the first quarter of 2022, despite challenging macroeconomic conditions and new regulatory developments,” MTN highlighted.

“Looking ahead, our markets will be impacted by rising inflation, currency volatility, increased pressure on disposable income for consumers and further potential supply chain disruptions.”

However, MTN’s medium-term outlook remains supported by the structurally higher demand for data and fintech services.