MTN Group, Africa’s largest mobile network operator, has released its interim financial results for the first half of 2024, revealing a mixed performance against a challenging economic backdrop. Despite these challenges, the Group continues to demonstrate resilience in its core operations.
In terms of revenue, MTN Group experienced a sharp decline of 20.8%, with service revenue dropping to R85.3 billion from R107.7 billion in the same period of 2023. This decrease was primarily driven by severe currency depreciation in critical markets such as Nigeria, South Africa, and Ghana. The local currencies in these countries experienced considerable weakening against the US dollar, further exacerbated by rising inflation and regulatory pressures.
On a constant currency basis, however, MTN’s service revenue showed a positive trend, with a 12.1% increase. This performance highlights the underlying robustness of MTN’s operational strategies, even in the face of external economic challenges.
MTN’s data revenue saw a significant boost, growing by 18.9% year-on-year. This growth is attributed to the increasing demand for digital services and the continued expansion of 4G and 5G network coverage across the continent. The rise in data revenue reflects MTN’s ongoing commitment to digital transformation and improving high-speed internet access in Africa.
The Group’s total subscriber base expanded to 288 million, representing a 5.4% increase compared to the previous year. This growth is a result of continuous investments in network infrastructure and enhanced customer experiences, particularly in high-growth markets.
The digital and fintech services segment continued to perform strongly, with MTN Mobile Money (MoMo) showing impressive growth. The total transaction value for MoMo reached R1.2 trillion, up by 26.3% from the previous year, underscoring the increasing adoption of mobile financial services across Africa.
Regionally, MTN’s performance varied. In South Africa, service revenue increased by 3.3% to R21.1 billion, with EBITDA growing by 4.3% to R9.6 billion, maintaining an EBITDA margin of 36.5%. In Nigeria, however, service revenue plummeted by 52.9% to R20.5 billion, largely due to the severe devaluation of the naira. EBITDA in Nigeria dropped by 68.3% to R7.4 billion, with an EBITDA margin of 35.7%. In Ghana, service revenue fell by 15.1% to R9.8 billion, impacted by currency volatility and economic challenges, with EBITDA decreasing by 25.4% to R3.2 billion and an EBITDA margin of 32.6%.
MTN’s capital expenditure for the first half of 2024 totaled R19.2 billion, down from R33.8 billion in the previous year. Excluding leases, Capex was R13.4 billion. This reduction in capital expenditure reflects MTN’s strategic focus on optimizing investments amidst ongoing economic uncertainty.
Looking ahead, MTN Group remains cautious but optimistic about its prospects for the second half of the year. The company expects to continue facing economic challenges, particularly in its key markets, where inflation, exchange rate volatility, and regulatory uncertainties persist. However, MTN is committed to executing its strategic priorities, including further expanding its digital and financial services and enhancing network quality and coverage.
Ralph Mupita, MTN Group President and CEO, expressed confidence in the Group’s ability to navigate the ongoing challenges, stating,
“We are focused on delivering on our Ambition 2025 strategy and ensuring that we continue to create shared value for our stakeholders. While the external environment remains tough, our strong operational foundation and strategic investments position us well for future growth.” – Ralph Mupita, Group President and CEO, MTN
