Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Business of Tech

MTN Group keeps growth going in Q3

Article Image
The MTN Group has reported strong third quarter growth driven by good momentum in the major markets of Nigeria, Ghana and South Africa. The group's service revenue increased 19% year-on-year (YoY) to R125 billion (US$ 8.2 billion) in the first nine months of 2021.

Earnings before interest, tax, depreciation and amortization (EBITDA) increased by 24.1% YoY and the telco saw strong growth in data and fintech revenue, which both grew by around 35% YoY.

MTN also added 4.1 million more data subscribers over the year, to total 119 million; and Active MTN Mobile Money (MoMo) customers increased by 2.2 million to 51.1 million across 16 markets. MoMo processes almost 20,000 transactions a minute and the value of transactions increased by 67.2% YoY to US$175.5 billion.

Group subscriber numbers ticked up slightly to 271.9 million, held back by SIM card registration regulations in Nigeria which saw the Nigerian operation drop 7.5 million users over the past year.

Despite this, Nigeria – which is MTN's most profitable market – saw service revenue grow by 23.7% to N1.2 trillion (US$2.93 billion) for the first nine months of the year and EBITDA grew by 27.4% to N634.5 billion ($1.55 billion).

MTN South Africa service revenue also grew by 7.7% YoY for the nine-months and the third quarter showed resilience with service revenue growing 4.7% YoY.

"It's been a busy quarter, and I'm particularly pleased with the sustained operational momentum across our businesses," said MTN Group President and CEO Ralph Mupita.

He said that MTN's process of structurally separating its fintech and fiber assets remains on track and it was seeing material progress in deleveraging the holding company balance sheet, and its asset realization program and portfolio optimization priorities are progressing well.

The group reduced debt in the third quarter which led to S&P upgrading MTN's standalone credit rating to investment grade – a level last achieved five years ago.

IPO's aplenty

MTN said the recent listing of IHS Towers was an important milestone for its realization program, creating a liquidity platform for the future to deleverage further.

It also recently announced plans for further localization in Uganda - with the intention to float 20% of its shares on the Uganda Securities Exchange.

As part of the Q3 update it also announced a public offer of just under 3% of shares in MTN Nigeria as part of its previous announcement of plans to further localize 14% of the group's holding in MTN Nigeria over the medium term.

Mupita said MTN South Africa is also making good progress with the sale and leaseback of its towers.

Related posts:

*Top image is of MTN Group President and CEO Ralph Mupita (Source: MTN).

— Paula Gilbert, Editor, Connecting Africa

Innovation hub

Story

Hot startup of the month: Pan-African fintech KamaPay

This month's hot startup is pan-African fintech KamaPay, which helps individuals and businesses make cross-border payments on the continent.

Story

Afretec awards $3.3M in grants to African research teams

The African Engineering and Technology Network (Afretec) has awarded grants worth $300,000 each to 11 university research teams across Africa to advance digital technologies.

More Innovation hub

Latest video

More videos

Sponsored video

More videos

Industry announcements

More Industry announcements

Flash poll

All polls

Africa Tech Perspectives

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

Story

Challenges and opportunities for women's tech careers

A new survey reveals that COVID-19, the cost-of-living crisis, skills shortages and a lack of mentorship have negatively affected women's career development over the past two years.

Story

Survey: Opportunities for Women in Tech

Take our new survey for women across Asia, Europe and Africa looking at the biggest challenges and opportunities for women-led enterprises and trends in tech careers for women.

More AfricaCom perspectives

Upcoming events

London Tech Week
June 13-16, 2023
Queen Elizabeth II Centre, Broad Sanctuary, London SW1P 3EE
Cybertech Africa 2023
August 1-2, 2023
Kigali Convention Center, Kigali, Rwanda
Africa Tech Festival, Home of AfricaCom and AfricaTech
November 13-16, 2023
CTICC, Cape Town
More Upcoming events

Guest Perspectives

Story

Omdia View: February 2023

By Omdia Analysts

In February 2023 key events in the Middle East and Africa included a major Internet project for Africa's underserved by Liquid Intelligent Technologies and Microsoft as well as a 5G launch in Tanzania – that and more in this month's Omdia View.

Story

Omdia View: July 2022

By Omdia Analysts

Kenya and Zambia move towards 5G with new spectrum allocations while Tunisie Telecom plans to shut down its 3G network - that and more in this month's Omdia View.

More Guest Perspectives

Partner perspectives

All Partner Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up