MTN revenue declines by 20 per cent as subscribers hit 288m
21 August 2024 |
2:04 am
Although subscriptions on the network rose to 288 million customers in 18 markets, MTN Group reported a 20 per cent drop in its service revenues.In its interim financial results for the six months ended on June 30
Although subscriptions on the network rose to 288 million customers in 18 markets, MTN Group reported a 20 per cent drop in its service revenues.In its interim financial results for the six months ended on June 30, the loss was attributed largely to the depreciation of the naira, which has reduced the telco’s income from Nigeria.
According to the firm, the service revenue decreased by 20.8 per cent to R85.3 billion against R107.7 billion recorded in H1 2023.The Group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) decreased by 41.2 per cent to R29 billion (H1 2023 against R49.4 billion same period last year.
The firm noted that the EBITDA margin was lower by 11.6 percentage points) to 32 per cent, while basic earnings per share decreased by 278.6 per cent to 409 cents per share (cps). Reported headline earnings per share (HEPS) decreased by 198.5 per cent to 256cps.
MTN said of the 288 million subscribers,150 million were active data subscribers, which grew by more than nine per cent, which ensured that data traffic on MTN’s network grew by a third to 9054 petabytes.
MTN Group president and CEO, Ralph Mupita, noted that amid the revenue and earnings decline, he is encouraged by the company’s underlying operational momentum. He added that the H1 results were achieved in a challenging operating environment.
“MTN delivered a solid underlying performance in H1 2024, with pleasing progress in some key markets. This result, achieved against a challenging macro backdrop, was underpinned by the continued execution of our commercial initiatives and Ambition 2025 strategy.
“The momentum of our business was reflected in the continued growth of our ecosystem, with data traffic and fintech volumes up by 35.7 per cent (36.7 per cent excluding JVs) and 18 per cent, respectively. In H1, we deployed R13.4 billion of capex, reflecting a capex intensity of 14.8 per cent, largely reflecting lower spending by MTN Nigeria, as the opco [operating company] focused on reducing its exposure to US dollar-denominated obligations.”
According to Mupita, the mobile operator rolled out 1 556 4G and 829 5G sites in the financial cycle.
“Our focus on network quality and competitiveness has underpinned the net promoter score (NPS) position in our consolidated markets.”
According to him, the firm’s subscriber base ended the period at 288 million, with headwinds from subscriber registration regulations in markets such as Ghana and Nigeria, the decline in subscribers in Sudan amid the ongoing conflict and the firm’s exit from Afghanistan.
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