MTN Group Limited recently released its quarterly update for the period ended 31 March 2024. The update provides insights into the company’s financial performance, operational challenges, and strategic priorities.
Financial Performance Overview
MTN’s Group service revenue experienced a decline of 18.8% in the reported period, primarily driven by decreases in voice and data revenue. However, fintech revenue saw a positive growth of 11.4%.
| Financial Metric | 1Q 2024 (Rm) | 1Q 2023 (Rm) | % Change Reported |
|---|---|---|---|
| Group Service Revenue | 42,901 | 52,831 | -18.8% |
| Voice Revenue | -32.2% | -1.4% | |
| Data Revenue | -14.7% | 20.2% | |
| Fintech Revenue | 11.4% | 25.0% |
Operational Insights
Despite challenges such as high inflation and currency devaluations, MTN Group focused on operational execution. Investments in networks and platforms led to significant growth in data traffic and fintech transactions.
Subscriber and User Growth
MTN Group reported a 1.0% increase in total subscribers, with active data subscribers and MoMo users also showing positive growth. Active data subscribers were up by 7.8% to 149.2 million, while MoMo active users increased by 6.2% to 65.5 million.
EBITDA Performance
The Group’s EBITDA decreased by 28.7%, with a margin decline of 5.8 percentage points. This decline was attributed to cost pressures from inflation, forex depreciation, network resilience costs, and operational impacts in conflict-affected regions.
| EBITDA Metric | 1Q 2024 (Rm) | 1Q 2023 (Rm) | % Change Reported |
|---|---|---|---|
| Group EBITDA | 17,295 | 24,265 | -28.7% |
| Group EBITDA Margin | 37.9% | 43.7% | -5.8 pp |
Financial Position and Outlook
MTN Group maintains a healthy liquidity position, with a net-debt-to-EBITDA ratio well within covenant limits. The company’s net interest cover also remains stable. Despite near-term challenges, MTN is optimistic about long-term growth opportunities in data adoption and financial inclusion.
Conclusion
MTN Group’s quarterly update reflects a resilient performance amidst challenging macroeconomic conditions. The company’s strategic focus on driving data and fintech growth, expanding subscriber base, and maintaining financial stability positions it well for future opportunities. Despite headwinds, MTN remains committed to delivering value to its stakeholders and navigating the evolving landscape of the telecommunications industry.