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MTN Group today announced sustained momentum in its results for the 9 months to September 2019 with service revenue growing 9,6% and its EBITDA margin improving by 0,6% to 35,1%. During the quarter the group added 3,5m subscribers and now serves 244 million customers across its 21 markets.

Commenting on the update, MTN Group CEO Rob Shuter said: “Service revenue growth and improvements in our EBITDA margin continued into the third quarter. We remain committed to driving access to internet and financial services and in Q3 we added 4.7 million active data users and 2.2 million Mobile Money subscribers across the portfolio. Our Ayoba messaging platform is now available across five markets and is already recording 515,000 active users per month.”

Overall, solid performances in Nigeria and Ghana offset the headwinds in South Africa, which was impacted by the weaker consumer demand and changes in ICASA’s End User Subscriber Service Charter Regulations which have impacted out-of-bundle (OOB) usage. Notwithstanding these pressures, in the third quarter MTN South Africa saw an improving trend in both prepaid and enterprise service revenues. Consumer post-paid in South Africa remained strong in a competitive market with service revenue growing at 5,8%.

At June 2019 MTN had not recognised R393 million of unpaid revenue from its roaming agreement with Cell C and an impairment of R211 million had also been raised. Since the end of June 2019 to date, Cell C has made payments amounting to nearly R750 million, in line with an agreed payment plan.  MTN has continued its conservative accounting for the Cell C roaming contract and only payments receive during the third quarter were processed, and all against the outstanding balances as at June 2019. We continue to work with Cell C on an expanded network deal and are seeing good progress to date.

Providing an update of the asset realisation programme (ARP) MTN Group CFO Ralph Mupita said: “As at June 2019 we had achieved R2.1bn of the 3-year R15 billion target announced in March this year. We continue to make steady progress in this regard and, following American Towers Corporation’s announcement of its acquisition of Eaton Towers, we are in advanced discussions to dispose of our 49% holdings in ATC Ghana and ATC Uganda which we value at between R7bn and R8bn.

The post IPO lock up period of Jumia, in which we have an 18.9% stake has expired and, as at 29 October, this stake is valued at approximately R1.4 billion. We also continue to await regulatory processes for the redemption of MTN Nigeria preference shares that have a value of $315 million for MTN Group. Finally, Econet’s unsolicited offer to acquire our 53% stake in Mascom has been terminated following certain conditions of the sale not being met.”

The Group expects an improved performance in South Africa in 2020 as the effects of the End User regulation on OOB usage moderate, the enterprise division returns to growth and the Cell C situation stabilises. We are confident that in Nigeria we will maintain service revenue and EBITDA growth in line with the medium-term guidance. This will be delivered as we improve our data revenue performance with increased 4G coverage as we utilise our 800 Mhz spectrum. We are also pushing ahead with our mobile money strategy through the super-agent licence, with 66,282 registered agents currently and a target of 100,000 by year end.

Shuter concludes: “Although conditions have been tougher in the year, we have sustained our performance in 2019 and looking forward, we are focussed on executing our BRIGHT strategy to deliver sustainable growth in our operations and to simplify our portfolio to reduce risk and improve returns. We remain resolute and committed to building our digital operator strategy and delivering on our medium-term targets and dividend policy.

In pursuit of its goal to contribute to bridging the financial divide, MTN Group has granted third parties access to its Mobile Money (MoMo) Access Programming Interface (API) platform.

The open API enables developers and programmers to innovate on the platform and develop products and other solutions that will create a wider range of digital financial offerings for MTN’s customers.

To further foster innovation and enhance financial inclusion, MTN is inviting developers and entrepreneurs, across five countries, to participate in the MoMo API Hackathon. The Hackathon, run in partnership with Ericsson (MTN’s MoMo technology partner), will give app developers based in Ghana, Uganda, Cote d’Ivoire, Cameroon and Zambia the opportunity to create innovative financial and transactional applications using the MTN MoMo API platform.

“Enhancing financial inclusion through digital technology is an essential element in supporting the continent’s realisation of some of the United Nation’s Sustainable Development Goals. We also see this as an opportunity for more tech developers, entrepreneurs and businesses to work with us in bridging the financial divide, whilst also creating ample opportunities for themselves,” said Serigne Dioum, MTN Group Executive for Mobile Financial Services.

This Hackathon further illustrates the essence of the company’s ‘We’re Good Together’ initiative, which celebrates the role that collaboration can play in ensuring that more people enjoy the benefits of a modern connected life. The range of solutions to narrow the financial services gap can only be achieved through various partnerships with entrepreneurs, developers, financial services providers, regulatory authorities, other mobile network operators, merchants, distributors, businesses and technology providers.

About the challenge

MTN Group is pleased to announce the appointment of Djibril Ouattara to the position of MTN Ivory Coast CEO, effective 1 November 2019. The appointment follows the departure of former CEO, Freddy Tchala in September.

Djibril is a seasoned executive with experience spanning more than 15 years in telecoms. In his most recent role as CEO of MTN Congo Brazzaville, he made significant strides in delivering on the company’s BRIGHT strategy.

He has implemented a successful turnaround including a network transformation which won MTN Congo Brazzaville the award for ‘best network’ in the country for two consecutive years, and an aggressive Supply and Distribution transformation leading to significant value share growth. Additionally, he led the operation’s mobile money development, achieving 53% penetration rate in two years.

Djibril has worked across Africa, the USA and Europe. Prior to joining MTN he held CEO roles at Canal Plus Ivory Coast and Etisalat-Atlantique Telecom Togo. He holds an MBA from MIT-Sloan School of Management (USA), as well as an Engineering Degree from ENSIA-INSET in Ivory Coast.

Effective 1 November, current MTN Congo Brazzaville Chief Technical and Information Officer (CTIO), Ayham Moussa, will undertake the position of acting CEO for MTN Congo Brazzaville until a permanent appointment is finalised.

MTN Group is supporting AfroChampions’ second conference on Sustainable Green Growth and Industrialisation, taking place in Kigali, Rwanda. The conference which started on 8 October, and concludes on 11 October, aims to encourage collaborations and partnerships that will accelerate the transformation of Africa under the selected topic.

Speaking about this partnership MTN Group President and CEO, Rob Shuter, said: “Since inception 25 years ago, MTN has had the opportunity, together with our host countries and communities, to build a legacy of changing lives within the markets that we operate. Our We’re Good Together initiative celebrates this partnership approach and partnering with AfroChampions is another way in which MTN can play its part in harnessing economic growth in Africa.”

“MTN believes in the potential of an Africa whose nations pursue deeper trade, integration and cooperation. Looking forward, the African Continental Free Trade Agreement as well as interventions such as AfroChampions will ensure that the continent operates as a single Africa, building easier trading conditions for businesses and easier movement of goods and services and therefore stimulating economic activity across the continent,” added Shuter.

Celebrating 25 years of Being Good Together

MTN Group today launched its “We’re good together” initiative. This is aimed at demonstrating how, in partnering with our host countries, we can change lives by improving digital access, driving financial inclusion, empowering and enabling SMEs, creating jobs and broad community development, among many others. As a pan African company with roots that are deeply anchored in the continent, MTN is telling its story that doing good business extends far beyond corporate social investment initiatives.

Speaking about the role of MTN on the continent, Group CEO and President Rob Shuter said: “To harness the potential of Africa and ensure our youth are productively employed we need affordable, safe and relevant digital services which are matched with the required digital skills. This in turn will support the global development agenda and national priorities. As one of the major infrastructure investors across Africa, MTN through partnership and collaboration, can accelerate this digital inclusion.”

The global telecommunications industry has made significant progress on the Sustainable Development Goals but more still needs to be done to bridge the digital divide and MTN is prepared to do its part. Since inception 25 years ago MTN has been a significant contributor to the economies and communities within which we operate. A lot of this has been with respect to the infrastructure that is the backbone of the economies that we operate in, and often, that enables connectivity of people in the most remote areas. Our operations have also increasingly become a broader part of the economy through varying efforts including employment creation as well as Mobile Money.
MTN Group Media release

“Over the last 25 years MTN has built high-speed networks covering 560 million people, created jobs for over 5 million people and through MTN Mobile Money connected 30 million people to the benefits of easy, cost-effective mobile financial services across the continent,” said Shuter.

MTN has also worked to use this extensive mobile reach and technology to enable access to education with the goal of promoting and enabling digital teaching and learning. This has been driven by our aim to empower students with the knowledge required to seize opportunities, improve their quality of life and realise their ambitions.

“MTN only succeeds if Africa succeeds. Being a partner in development also means that we have a responsibility to enable the youth to unlock economic opportunities in every country we operate in. We have therefore enhanced our focus on more actively demonstrating what can be achieved if we work together to enable a shared value system and drive a prosperous Africa,” added Shuter.

MTN Group has announced that current MTN Zambia CEO, Philip van Dalsen will be leaving MTN at the end of September. Philip joined MTN in 2012 as CEO of MTN Cyprus. In January this year, he moved to MTN Zambia in the same capacity.

MTN Rwanda CEO, Bart Hofker, will take over the reins from van Dalsen, effective October. Hofker is a senior commercial telecom executive with extensive experience in mobile, fixed and integrated businesses. MTN also announced that Mitwa Kaemba Ng’ambi has been appointed as the new CEO of MTN Rwanda. Ng’ambi, is a seasoned leader with a career spanning more than 10 years in telecoms and returns to MTN where she previously held the role of Chief Marketing Officer at MTN Benin and several other roles at MTN Zambia.

She has a strong background in commercial and technology with a track-record of driving business strategy for growth, as well as developing high-performing teams. She also has the unique experience of leading mergers and acquisitions in the telecom industry. Ng’ambi joins MTN from Airtel Tigo Ghana, where she held the role of CEO. Prior to which, she was CEO of Tigo Senegal. She has a Masters Degree in Computer Science from the University of Joensuu, Finland and Bachelor of Science Degree in Computer Science from the University of Namibia.

Changes in Cote d’Ivoire

CEO of MTN Cote d’Ivoire Freddy Tchala will be leaving MTN at the end of September. Tchala has been with MTN for 17 years and has had a remarkable journey with the company. After leaving MTN Cameroon, he served as CEO in Guinea Conakry and Congo Brazzaville, before joining MTN Cote d’Ivoire four years ago. MTN will make an announcement in due course regarding a successor to Tchala.

 

MTN Group reiterates its stand against any form of xenophobia and damage to property and remains concerned about the situation in its markets.

MTN confirms that over the last day four MTN outlets in Nigeria have been the subject of attacks and we have had to close some stores in Johannesburg. There are no reported injuries.

While we remain committed to providing uninterrupted services, the safety and security of our customers, staff and partners is our primary concern. MTN’s stores and service centres in Nigeria have therefore been closed as a precaution.

MTN is working with the relevant authorities and other stakeholders to focus on stabilising the situation both in Nigeria and South Africa and to ensure the safety and well-being of all those impacted by the unfortunate violence. We are also looking at coordinating with key stakeholders to work on medium to long term interventions to this situation.

As a company, we remain committed to ensuring a peaceful, harmonious and respectful relationship with all our stakeholders across Africa.

As MTN we strongly condemn prejudice and xenophobia and we reiterate our unequivocal condemnation of any and all violence. As a leading pan-African telecommunications company with operations in 21 countries, MTN believes in the potential of an Africa whose nations pursue deeper trade, integration and cooperation. We actively encourage the dialogue necessary to maintain peace and sustain strong relationships and urge all our customers and stakeholders to support and defend the principles of human rights, diversity and inclusion and an integrated collaborative Africa.

MTN Group today announced it has shown encouraging progress under difficult trading conditions. The Group saw growth of 12% in adjusted headline earnings per share, which is the first time that we have delivered growth in this measure in recent years. Commercially, the subscriber base continues to grow, increasing by a further 7,7 million to now number more than 240 million across operations.

Looking forward the Group is well-positioned to grow by leveraging its scale and enhancing its competitive position as it transitions into a digital operator.

Listen to MTN Group President & CEO, Rob Shuter, commenting on the interim results:

 

MTN is breaking the demographic divide

 

Increasing access to economic and transactional services for all

 

Make a big difference in the continent

 

MTN invested R12 billion in building world-class network

 

MTN Group today announced an encouraging set of results for the six months ended 30 June 2019 in the context of difficult trading conditions across its major markets.

Commenting on the results, Rob Shuter, MTN Group President and CEO, said:

“We had a good first half, reporting solid financial results, good commercial momentum and encouraging strategic progress. We saw growth of 12% in adjusted headline earnings per share, which is the first time that we have delivered growth in this measure in recent years. Our service revenue grew just below 10% and EBITDA just above 10%, both on a constant currency basis. Our holding company leverage remains stable at 2.3x, well within our guidance range of 2 to 2.5x. And, as we grew revenue and carefully managed our investment programme, we saw capex intensity drop further, to 16,9%.

Commercially, we had strong subscriber growth of 7,7 million in the first six months of the year to reach a total of 240 million subscribers.  The number of active data users grew by 3,5 million to 82 million and our 30-day active Mobile Money users grew by 2,4 million to 30 million. Our continued focus on the customer experience has seen us record brand NPSˆ leadership across more than 50% of the portfolio, with 12 markets now leading. That contributed to MTN being named the most valuable South African brand in the Brand Finance South Africa 50 report and the most admired African brand by Brand Africa 100.  

During the period we had some landmark events. We successfully completed the listing of MTN Nigeria on the Nigerian Stock Exchange and our e-commerce joint venture Jumia listed on the New York Stock Exchange. Within three months of announcing our asset realisation programme, which is targeting at least R15 billion over the next few years, we delivered R2,1 billion in proceeds.

Our advanced instant messaging platform, Ayoba, is now live in three of our West African markets and has more than 300 000 active monthly users. We are very pleased with the formal approval of our super-agent licence in Nigeria, which clears the way for the launch of phase 1 of our Nigeria fintech business while we await a banking licence.”

 Operating environment

 In South Africa, the group contended with a weak macroeconomic environment as well as the introduction of new end-user requirements and the repricing of out-of-bundle data rates. In Nigeria, economic activity was muted in the time of presidential elections and prior to the formation of the cabinet. In Iran, the rial weakened sharply after the re-imposition of US sanctions.

Financial performance

Notwithstanding this environment, in constant currency terms, service revenue grew by 9,7% to R67,9 billion and earnings before interest, taxation, depreciation and amortisation (EBITDA) expanded by 10,2% to R31,2 billion. The holding company net debt to EBITDA ratio remained stable at 2.3x, which is well within the group’s guidance range of 2.0 to 2.5x, and capex intensity dropped further to 16.9%, indicating greater efficiency in deploying assets.

Looking ahead, Shuter says:

“MTN is well positioned to grow by leveraging our scale and enhancing our competitive position.

 In the second half, in South Africa we will focus on the continued turnaround of the enterprise business, the recovery of prepaid and the launch of Mobile Money. In Nigeria, we will focus on the further rollout of 4G coverage, the launch of Ayoba and Music Time! as well as accelerating our fintech ambitions by fully leveraging our extensive distribution network to offer a range of transfer and payment services to our GSM customer base.

 Across the rest of the portfolio we have six focus areas. These are: the continued turnaround of our operations in the West and Central Africa region; the resolution of some of the more complicated regulatory situations; the rollout of MusicTime! and Ayoba across the group; the asset realisation programme; launch of our pan-African MTN 4 Good campaign and delivering on our medium-term targets.”

View our Interim results for 2019 here.