Author: waseem
This International Day of the African Child, MTN is pleased to be supporting the United Nations Children’s Fund (UNICEF) and the World Food Programme (WFP) to help mobilise funds for children and families across Sub-Saharan Africa affected by the COVID-19 pandemic.
MTN is doing this by enabling SMS fundraising throughout a month-long campaign to raise funds for those most severely impacted by the virus on the continent. All proceeds raised through the campaign will be donated in full to UNICEF and WFP, who are supporting COVID-19 affected communities across Africa.
The pandemic’s closure of schools is putting at risk the futures of millions of Africa’s children, compromising their ability to learn and their access at school to healthcare and food. Because of COVID-19, some 253 million children across the continent are not going to school and 65 million are missing out on school meals.
“Healthy, well-nourished kids have a much better chance of fulfilling their potential,” said Nompilo Morafo, MTN Group Executive for Corporate Affairs. “Inclusion is at the heart of MTN and this is why we decided to support the campaign by UNICEF and WFP to raise funds for health supplies and food.”
“The COVID-19 epidemic is affecting children in many ways” said Dr Jama Gulaid, UNICEF Representative in South Africa. “UNICEF appreciates the assistance of MTN which is helping us and our partners reach children with vital services: health, protection and water sanitation and education,” Gulaid added.
The World Food Programme Regional Director for Southern Africa, Lola Castro said, “With so many people on the continent already acutely food insecure, we are extremely concerned about the prospect of COVID-19 causing a hunger catastrophe.”
In this unprecedented global crisis, the poorest and most vulnerable communities are the most at risk. Together we can give them a fighting chance with access to the basics: clean water, food, soap, gloves, and masks. The donations will help UNICEF and the World Food Programme deliver life-saving health supplies and nutritious food.
To donate: In SA, SMS “donate” to 42164 to donate to UNICEF and the WFP. SMS cost is R30. Network Fees Apply, closing date 30 June 2020. Rest of the world, https://help.unicef.org/africa.
MTN SA’s commitment to transformation and improving access to mobile technology across SA has resulted in the company today achieving the significant milestone of Level 1 B-BBEE Contributor Status.
This achievement comes at a time when South Africa ramps up efforts to recover the economy and speed up the inclusion of Black Owned businesses in these efforts. MTN stands in strong support of government’s commitment to ensure that South African’s are able to benefit from transformation across business, employment and skills development.
The strategic intent was to reach this important level within three years, but MTN is proud to have reached its target in only two years thanks to the accelerated and concerted commitment of its entire team.
The result of this can be seen in the procurement spend with Black Owned vendors where in 2016 MTN spent R3.5 billion but by 2019 that had increased to R7.1 billion. In 2016 MTN had spent R9.2 billion with Black Women Owned vendors and this had increased to R10.5 billion in 2019.
“MTN believes in the future of SA but without broad levels of sustained and consistent inclusion and access to technology, the country will not reach its potential. To this end, our 4G coverage has reached 96% of our population, ensuring that we do not leave any township or village behind. We are extremely proud to have therefore reached Level 1 status ahead of target and look forward to doing even more to drive change and improve lives for all South Africans,” says MTN SA CEO, Godfrey Motsa.
MTN’s B-BBEE strategy identifies Enterprise and Supplier Development and Skills Development as two key focus areas. “This strategy is premised on making our customer’s lives BRIGHTER by contributing to Shared Value creation through addressing socio-economic challenges at scale,” says Motsa.
Great strides were made in the last two years by focusing on the key strategic objectives.
“The powerful collaboration between business and team MTN to ensure alignment between the organisational strategies and the B-BBEE objectives has been a major factor behind our success,” he adds.
MTN intends to implement this winning strategy across all transformation touch points within the business. “This is just the beginning; we are pro-transformation and open for even more collaboration as we invite black business to engage even more with MTN going forward.”
“The re-alignment of our procurement policies resulted in notable traction in spend with Black Owned vendors seeing an increase of R2.2bn, Exempted Micro Enterprises which saw an increase of R448m and Black Designated Group suppliers with an increase of R272m in 2019,” Motsa explains.
It is also notable that MTN SA upheld its pledge of participating in and permanently appointing 1000 youth for the YES4Youth Programme as our contribution in addressing the youth unemployment challenges that our country faces. “This programme immediately proved to be a success for ourselves as we benefitted from a new talent pipeline and the YES4Youth cohort where permanent employment was created,” he adds.
“MTN was born in democracy and we believe that transformation is in our DNA. We will continue to demonstrate that through truly inclusive economic growth. As the country faces up to the socio-economic challenges created by the COVID-19 pandemic, MTN will leverage its firm foundation to ensure that all South Africans can enjoy the benefits of the digital world,” concludes Motsa.
The spread of COVID-19 has accelerated the adoption of mobile financial services, which are increasingly being recognised as a tool to mitigate the use of cash in a world fighting the highly contagious virus.
This trend has been supported by the move by many operators, including MTN Group, to waive or reduce certain fees to ease customers’ financial pressures amid a global economic contraction.
“To date, as part of MTN’s Y’ello Hope response to COVID-19, we have zero-rated 120 million peer-to-peer Mobile Money transactions with a value of approximately R43 billion,” says Serigne Dioum, MTN Group executive for mobile financial services. “This has enabled many consumers and businesses across our 16 MoMo markets to transact and accept payments remotely, allowing them to continue operating despite lockdowns.”
Mobile financial services have grown faster in Africa than anywhere else in the world. Prior to their introduction, most Africans were unbanked. Without bank accounts, people could not easily access credit and had no way of paying bills or transferring money electronically. Mobile financial services have improved access and the use of accounts, underpinning many of the UN’s SDGs.
“As many countries adopted partial or total lockdowns, we witnessed an evolution in the type and volume of Mobile Money transactions,” says Dioum. “We saw a significant increase in MoMo Pay merchant and bill payments despite an initial decline in Mobile Money agent transactions due to the restrictions. However, we have already started to see a gradual increase as restrictions have been eased.”
“These changes, triggered by COVID-19, have enabled the acceleration and scaling of cashless and digital economies. They support our ambition to transition to an end-to-end platform, creating a digital marketplace and connecting consumers to businesses, and businesses to businesses.
We see this as a significant opportunity to change the outlook for affordable, inclusive, understandable and comprehensive financial services in Africa and the Middle East.”
MTN’s plan to further financial inclusion is focused on offering mobile financial services to more customers and small businesses in more markets, expanding the range of products available via the MTN ecosystem and becoming a super platform. We have developed a low-cost payment acceptance solution for small retailers, enabling customers with feature phones to make payments with their MoMo wallets by dialling a USSD code with a feature phone, or by using the MoMo App for smartphone owners.
MoMo Pay is now offered through multiple channels: face-to-face, e-commerce, m-commerce and on the app. It has a strong value proposition: no fee is charged to the customer and merchants gain additional value over and above accepting payments because they too can make payments such as paying salaries, bills and suppliers, as well as accessing working capital. MoMo Pay is live in 10 markets, with 250 000 merchants, 2,1 million active users.
At the end of March 2020, MTN Group had 35,1 million active MoMo customers, an increase of 0,4 million from December 2019. In the first quarter, we accelerated our MoMo agency network in Nigeria under our super-agent licence, adding 70 000 agents, to bring the total number of registered agents to 178 000.
As one of the largest mobile financial services operators, MTN is uniquely placed to continue to drive greater levels of financial inclusion as Africa and the world adapt to a new way of transacting. Accelerated financial inclusion is a potent enabler of socio-economic development that empowers the most vulnerable in society.
MTN, in partnership with a vendor management AI tool, embarked on a site optimisation platform proof of concept in 2019. The platform aims to reduce costs, ensure resilience and reduce MTN’s carbon footprint.
The vendor management platform first identifies built-in problems on each site upon installation. On a day-to-day basis the platform uses AI to optimise power usage of each tower site by monitoring the real-time status of site components including grid availability, battery life, solar availability and generator fuel levels. The platform then uses IBM Watson™ AI to choose the lowest cost and lowest environmental impact power source based on site characteristics and historic performance.
The platform automatic selection of power sources has resulted in an initial 53% reduction in CO2 emissions through the proof of concept process. Not only did the platform reduce negative environmental impacts, it also resulted in zero network downtime and continuously drives improvements across our infrastructure. We are very optimistic about these findings and the role AI stands to play at the heart of MTN’s infrastructure programme.
MTN is delighted to announce that it remains the ‘Most Admired African Brand’ based on spontaneous consumer responses in Brand Africa 100: Africa’s Best Brands 2020 survey released on Monday. MTN is also the only African brand in the rankings of the ‘Most Admired Brands in Africa’.
In a survey carried out in 27 countries, representing around 80% of the population and the GDP of Africa, the group is now also considered one of the continent’s most admired media brands. MTN Mobile Money – through which MTN provides more than 35 million Africans access to financial services – remains one of Africa’s most admired finance brands. The Group also maintained its top position in the telecoms provider category.
“We are thrilled to receive these accolades as the continent celebrates Africa Day,” said Group President and CEO Rob Shuter. “They endorse the work that we are doing to build a digital operator, moving our customers from a voice-centric world into the world of mobile data, digital services and financial services by using the power of the internet.”
“Achieving the best brand in our markets is a critical part of our BRIGHT strategy. I would like to thank all our customers and communities for the trust that they have shown in us. It encourages us to work harder every day to deliver on our belief that everyone deserves the benefits of a modern connected life.”
MTN Group has boosted its MTN Foundation’s contribution to support efforts in combatting the spread of the COVID-19 pandemic across its footprint. The initiatives include contributing towards Government Relief Funds, the procurement and sourcing of vital Health Care Resources, Food and Water Security through the provision of food packages and water points to meet basic needs, and the Economic Upliftment of SMMEs and local market value chains.
The COVID-19 global pandemic is already the most severe human tragedy of our generation. While the exact consequences, including those of a socio-economic nature, cannot be accurately estimated at this stage, we know that the health emergency is to be followed by social and economic emergencies, both globally and across our markets.
The vulnerable in our societies will suffer the most during this crisis, both in the short and in the long-term, and we have identified food insecurity to be the most pressing as well as the most disruptive risk to our societies.
Across the continent and beyond, national governments have set up relief funds aimed at supporting those in the greatest of need. MTN Group has contributed a monetary value of R42 million in a number of markets for Government Relief Funds in response to COVID-19 efforts. The funding is for the support of the unemployed, small and large businesses and the procurement of essential goods such as food and medicine which positively impacts the economic upliftment of societies.
In line with MTN Group’s commitment towards minimising the spread of the virus, MTN has supported the provision of 130 500 Personal Protective Equipment (PPE) and 10 000 virus testing kits. Through the donation of food packs and the provision of water points, approximately 46 000 people have access to vital food and water during these trying times. Through these efforts and our support for Government Relief Funds, we have invested R70 million towards ensuring communities are supported.
Nompilo Morafo, Group Executive Corporate Affairs, says: “MTN, as a leading brand in the markets in which we operate, believes that we have a key role to play in assisting to minimise the likelihood of transmission and its impact on society. We are incredibly proud of the level of resilience that the communities have demonstrated across our operations as they fight against the challenges that COVID-19 brings.
Africa and the Middle East have always been cultures defined by ingenuity, entrepreneurship, and positivity. We believe the more we can do to address our communities’ essential needs, the more time they can use to focus on this resilience and innovation potential that will be at the heart of social and economic recovery.”
Since COVID-19 has transformed the world we live in there have been countless inspiring stories of ingenuity as people find new ways to operate and contribute to the recovery. African laboratories and tech companies have developed rapid testing kits, mobile tracking apps and medical drones. In some countries radio, web solutions and apps are delivering education to students who would otherwise be cut off from school and across the continent businesses are redesigning their production lines to manufacture much needed ventilators, sanitizers and PPEs. As we rebuild and reshape our economies, innovation will be the game changer.
We are committed to leveraging our core capabilities to enable this process, underpinned by our core belief that everyone deserves the benefits of a modern, connected life and that connectivity can play a unifying role.
The COVID-19 pandemic as a global health and societal emergency requires effective and immediate action by governments, individuals and businesses. It is critical that we collectively respond with one unified voice and take the necessary measures to make a meaningful contribution to society.
MTN Group today announced a positive service revenue trajectory in the first quarter financial results for the year ended 31 March 2020
Speaking on the results MTN Group president and CEO, Rob Shuter said: “The effects of the COVID-19 pandemic on the global economy have brought about unprecedented uncertainty, volatility and challenges which are impacting our markets at both the socio-economic and macro-economic levels. The impact of the pandemic on our quarter one performance was not significant as lockdown restrictions for our consolidated subsidiaries were only implemented from the last week of March 2020.
We continued to build commercial momentum adding 6,6 million subscribers in the quarter, with active data users increasing by 2,9 million and MoMo subscribers by 0,4 million. We continued to scale our Ayoba platform recording 2,6 million monthly active users. We accelerated our MoMo agency network in Nigeria, under our super-agent licence, adding 70 000 agents in the first quarter, bringing the total number of registered agents to 178 000.
On strategic progress, the digital business returned to growth, booking 15.6% in the quarter. In MTN SA the enterprise business recorded its second quarter of growth and in May we commenced phase 2 of the national roaming agreement with Cell C and look forward to a continued partnership.
In these difficult times we continue to focus on our key priorities: looking after our people, our customers and our networks while we focus on efficiencies. For our people, the immediate priority is their health and safety, where the work-from-home programmes across our markets empower our staff to work remotely while ensuring continuity in our operations. For our customers, we have ramped up our digital channels as a service alternative, to enable them to continue purchasing airtime and accessing our products and services seamlessly as well as launching Y’ello Hope Packages in most of our markets.
Our various initiatives support governments across our markets with communication systems and connectivity as we do our part to help minimise the economic and social impact.
The COVID-19 situation is an evolving one and will undoubtedly impact the year ahead. Given the uncertainties associated with the duration and economic impact of the pandemic, it is difficult to reliably quantify the direct and indirect financial impacts on the business at this early stage. The group will continue to focus on business continuity and efficiency, and we have implemented strict measures to preserve resources and strengthen our resilience.”
Financial Performance
For the first quarter, MTN delivered a solid performance increasing constant currency service revenue by 11,1% and EBITDA by 15,6% with EBITDA margin improving by 2,1pp to 43,2%, in line with medium-term targets. The group recorded voice, data and fintech revenue growth of 6,3%, 26,4% and 26,0% respectively as we continued to execute on our strategic objectives and progress toward becoming a digital operator. Digital revenue has returned to growth, increasing by 15,6%.
MTN Group CFO, Ralph Mupita concluded, “We are encouraged by the service revenue growth of 11.1% which we achieved on a constant currency basis, this translated to 16.5% on a reported basis. Good cost control across the group supported the increase in group EBITDA margins, with a particular strong performance from MTN Ghana. Notwithstanding the impacts of COVID-19 in the first quarter, the balance sheet remained resilient and our cash and committed undrawn facilities was approximately R45 billion at the holding company level, providing us with sufficient liquidity during these uncertain and unprecedented times.
We have experienced a continued surge in data traffic during the month of April, but voice traffic and mobile money transactions were under pressure given various lockdown measures taken across markets. Where lockdown measures have been lifted or relaxed recently, voice recharges and mobile money transaction volumes have improved. For now, we are maintaining our 3 – 5 years medium-term guidance but will update the capital markets in August of any changes when we release our H1 2020 results.”
Looking ahead
The current environment is marked by significant uncertainties. It is still too early to assess the economic impact of the pandemic on our customers and reliably quantify the direct or indirect financial effects on our business. The remainder of the year will be shaped by the ramifications of the pandemic, and we will continue to update all stakeholders as the effects become clearer.
We are not only focused on managing the risks brought about by COVID-19, but also on the opportunities it creates in the accelerated digitalization it has brought about. We believe we are well positioned as a company to benefit from this evolution, especially given our focus on growth in our data, digital and financial services businesses. The Group remains focused on the execution of our BRIGHT strategy to deliver sustainable growth in our operations and value to our stakeholders.
MTN Group (MTN) has asked a United States court to terminate the case filed against it on December 27, 2019, asserting claims for civil monetary relief under the U.S. Anti-Terrorism Act.
As stated in the formal written document submitted to the U.S. court by MTN’s legal counsel, entitled a “motion to dismiss,” MTN requested the court to end the lawsuit and grant a judgment in MTN’s favour for two independent reasons: because the court lacks jurisdiction over MTN, which does not operate in the United States, and because the complaint does not allege any conduct by MTN that would have violated the Anti-Terrorism Act.
Under U.S. law and procedures, MTN is not permitted at this stage of the lawsuit to challenge or contest the factual allegations made against the company, so the motion to dismiss focuses on the lack of jurisdiction and the legal insufficiency of the claims.
MTN has deep sympathy for those who have been injured or lost loved ones as a result of the tragic conflict in Afghanistan. As stated in the motion to dismiss, however, “the MTN Defendants are not the extremists that caused Plaintiffs’ tragic losses and injuries. To the contrary, MTN Afghanistan has been lauded by the World Bank for expanding telecommunications services to the impoverished people of Afghanistan and has itself been a target of violence in the devastating conflict in that war-torn country. Put simply, Plaintiffs have sued the wrong defendants in the wrong court based on insufficient allegations.”
MTN remains of the view that it conducts its business in a responsible and compliant manner in all its territories and, as reflected in the motion to dismiss, intends to defend its position accordingly.
MTN Group today announced details of its R250 million relief package in response to the COVID-19 pandemic. Operating across 21 markets MTN Group has customised its response to recognize its responsibility to contribute both in its home market South Africa as well as in many other markets facing enormous challenges managing the pandemic. Comprising five key intervention initiatives, the Group has focused on employees, customers, vulnerable groups, contributions to the South African Government’s Solidarity Fund and participating in industry interventions.
“We believe it is the responsibility of all organisations to assist where they can during the pandemic. MTN plays a vital role in the mobile and telecommunications industry across Africa and the Middle East and it is vital that we assist our employees, customers and stakeholders during this difficult time,” said Mcebisi Jonas, the Chairman of MTN Group. Believing that charity “begins at home”, the Group plans to raise R40 million for the MTN Global Staff Emergency Fund for employees in need.
The funds will be raised by contributions from the Group’s directors, managers and general staff. The Chairman, Group CEO, Group CFO and a number of MTN Group directors have pledged 30% of their board fees and salaries for the next three months. The executive teams of both MTN Group and MTN South Africa have also contributed to the fund. In addition, other staff members can also contribute by making salary sacrifices.
Furthermore, over R150 million will be invested in the Y’ello Hope Package for customers – that includes free SMS services, the waiving of fees for certain mobile money transactions, discounted calling during off-peak periods, zero-rating of certain health, social services and educational sites and payment concessions to our business customers. “Utilising our services and technologies for the greater good is key at the moment. We can positively impact millions of lives and our main focus is on keeping our network in good working order and enable our customers to connect with their loved ones during this most difficult time for all,” said Rob Shuter, MTN Group President and CEO.
MTN is also mobilising the work of the MTN Foundations across the markets to reach those most vulnerable through contributions towards tackling health emergencies to minimise the spread of COVID-19 (Disease Commodity Packages and ICT services needed for Health Ministries and Health professionals); and enabling students to remain productive by accessing vital school and university content with a total contribution of at least R50 million.
MTN was born at the dawn of South African democracy and owes its heritage to the place of its birth. MTN Group will also contribute R10 million to the South African Government’s Solidarity Fund. MTN will also leverage its knowledge and infrastructure in the continued participation in the many forums that have been set up to assist those in need.
MTN has been awarded the most valuable telecom brand in Africa in a recent annual report by Brand Finance, a leading independent brand valuation consultancy. The report stated that MTN’s brand value was boosted by a solid overall performance for the year, despite challenging economic conditions and regulatory challenges in some markets.
Brand finance also recognised MTN for its focus on customers and providing a high-quality service across all its markets. “Amid these unprecedented times in fighting a global pandemic, MTN Group is humbled by the Brand Finance recognition and our progress in rising up through the ranks of this year’s Telecoms 150 report” said MTN President and Group CEO, Rob Shuter.
Brand Finance CEO, David Haigh commented: “MTN is to be commended for its performance in its home market as well as further afield. They are increasingly recognised throughout Africa by their customers as providing high quality service, because their brand image is deeply rooted on more than just marketing campaigns”
Brand Finance acknowledged MTN’s BRIGHT strategy to grow revenues through data and digital, while also focusing on growing its subscriber base. It upgraded MTN’s brand strength rating from AAA- to AAA, in recognition of an increasingly strong leadership position in telecommunication services throughout Africa and the other markets within which it operates, as well as increasingly resilient network investments.
The report noted a negative global impact on the brand value of the world’s biggest telecom companies which are set to be impacted by the Coronavirus outbreak. “We have built a sound, robust and resilient organisation that can and will weather the storm before us. As a Group, we are taking the decisive steps required to persevere in our MTN spirit of togetherness and a positive, can-do attitude,” concluded Shuter.