MTN Group’s robust commercial performance in the first half of 2024 was not just a result of financial gains but also a testament to our strategic progress and sustained balance sheet strength, providing reassurance about the company’s direction.
Data service revenue surged 21% in constant currency terms, while fintech service revenue climbed 27% during the six months ending June 30, 2024.
Aligned with its Ambition 2025 strategy, MTN advanced its local ownership initiatives in MTN Ghana and MTN Uganda, generating gross proceeds of $95.37 million.
The Group also executed the strategic exit from Afghanistan and Guinea-Bissau as part of its portfolio optimization efforts.
As of June 30, 2024, MTN reported 288 million subscribers across 18 markets, with 150 million active data subscribers—a more than 9% increase.
This growth, particularly the 33% rise in data traffic and the over 9% increase in active Mobile Money users, is a clear indication of the potential in these sectors, making stakeholders feel optimistic about the company’s future.
To support this growth, MTN invested $729.22 million in capital expenditure, focusing on expanding its 4G and 5G networks and enhancing business IT systems.
Despite this, the Group’s reported results were impacted by currency devaluations, particularly the naira against the rand and the ongoing conflict in Sudan.
Adjusted headline earnings per share (HEPS) fell by 50% to 373 cents, and adjusted return on equity (ROE) decreased by 4.2 percentage points to 20.2%.
MTN Group President and CEO Ralph Mupita acknowledged the strong commercial performance but noted, “The sharp devaluation of the naira had the most significant impact on reported results.”
He highlighted improvements in MTN South Africa, which, having completed its network resilience investment, achieved a network availability of 99% by June 2024 despite reduced load-shedding.
Mupita also praised MTN Nigeria’s Nigeria’s performance, noting progress in revenue growth, capex optimization, and reduction of US dollar-denominated obligations.
MTN Nigeria has renegotiated tower contracts with IHS and ATC, which are expected to enhance earnings and cash flow.
MTN Group and MTN Zakhele Futhi have announced plans to extend the Broad-Based Black Economic Empowerment (B-BBEE) scheme by up to three years, pending shareholder approval.
MTN Group and MTN South Africa hold a level 1 B-BBEE contributor status.
Looking ahead, MTN reaffirmed its medium-term guidance and anticipates a full-year dividend of 330 cents per share for FY24.
“We will continue executing our Ambition 2025 strategy to drive growth and unlock value for all stakeholders over the medium term,” Mupita said, reiterating our commitment and making stakeholders feel confident about the company’s future.
He expressed optimism that macroeconomic conditions, including GDP, inflation, and currencies, will improve by 2025.