Category: Media releases
In the first half of 2024, MTN Group delivered strong commercial momentum, executed key strategic initiatives, and sustained the strength and resilience of the balance sheet. In constant currency, data service revenue increased by 21% in the six months to 30 June 2024 and fintech service revenue climbed by 27%.
In line with our Ambition 2025 strategy, we made good progress to further increase the level of local ownership of MTN Ghana and MTN Uganda, with gross proceeds of R1.7 billion. The Group also completed the orderly exit of operations in Afghanistan and Guinea-Bissau, as part of portfolio optimisation and simplifying the group.
At the end of June 2024, MTN had 288 million subscribers across 18 markets. Of these, 150 million were active data subscribers – up more than 9% – who lifted data traffic on MTN’s network by more than a third to 9 054 petabytes.
At 66 million, the number of active Mobile Money users was also more than 9% higher, boosting MTN’s fintech transaction volumes by 18% to 9.7 billion in the period.
To support this continued acceleration in demand, MTN committed over R13 billion in capital expenditure to expand our 4G and 5G networks and business IT systems. The Group’s balance sheet remained strong, with the holding company leverage ratio at 1.6x, and an improved mix of US dollar debt to rand debt at 22:78, well within our target mix of 40:60.
The strong underlying performance was masked by the impact of weaker currencies – most particularly the naira against the rand – as well as the ongoing conflict in Sudan on the Group’s reported results.
“Although the commercial momentum and strategy execution were solid in H1, macro headwinds impacted reported results,” said MTN Group President and CEO Ralph Mupita. “The sharp devaluation of the naira over the period had the most significant impact on reported results.”
Impacted by the naira devaluation, the translation into the reporting currency and the conflict in Sudan, adjusted headline earnings per share (HEPS) decreased by 50% to 373 cents and adjusted return on equity (ROE) declined by 4.2 percentage points to 20.2%.
“MTN South Africa, which has now completed its network resilience investment, demonstrated encouraging progress from Q1 24 to Q2 24 in terms of topline growth and earnings,” he said, adding that the investment positioned it to provide an average network availability of more than 95% under stage 6 loadshedding. At the end of June 2024, network availability was 99%, supported by reduced loadshedding in Q2 24.
“MTN Nigeria delivered a strong underlying performance, despite the severe macro impacts on its financial performance,” Mupita said, noting good progress in key initiatives including acceleration of revenue, optimisation of capex and the reduction of its US dollar-denominated obligations.
MTN Nigeria recently concluded the re-negotiation of its tower contracts with IHS and ATC. The revised contracts will support earnings and cashflow development in the business as part of the initiatives to resolve the negative equity position of MTN Nigeria. Discussions around tariff increases for voice and data continue with the authorities in Nigeria.
MTN Group and MTN Zakhele Futhi also announced through a joint statement the intention to extend the Broad-Based Black Economic Empowerment scheme by up to three years, subject to shareholder approvals. MTN Group and MTN South Africa each have a level 1 B-BBEE contributor status.
Looking ahead, MTN – which this year celebrates 30 years in the business – reconfirmed its medium-term guidance and anticipates paying a full year dividend for FY24 of 330 cents per share.
“We will continue on the execution of our Ambition 2025 strategy to drive growth and unlock value for all stakeholders over the medium term,” said Mupita. “The near-term macro backdrop continues to be challenging across our markets; GDP, inflation and currencies are expected to improve into 2025 across key markets.”
Following the announcement last week that IHS Holding Limited (NYSE: IHS) (“IHS Towers” or the “Company”) and MTN Group (JSE: MTN) had renewed and extended communications infrastructure deals in Nigeria, as well as completing the renewal of all contracts across IHS Towers-MTN markets recently, the companies said on Tuesday that with the commercial relationship now firmly established for the next decade, they will now work constructively to find a mutually agreeable resolution to governance issues previously raised.
On 7 August 2024, the companies announced the agreement to renew and extend all Nigerian tower Master Lease Agreements until December 2032. The contracts include new financial terms that provide what the parties believe to be a more sustainable split between local and foreign currency. With this, IHS Towers and MTN Group have now completed the renewal of approximately 26,000 MTN tenancies on IHS Towers infrastructure across six African markets – Nigeria, Rwanda, Côte d’Ivoire, Cameroon, Zambia and South Africa.
MTN Group owns approximately 26% in IHS Towers, a stake which pre-dates the tower company’s listing on the New York Stock Exchange in 2021.
MTN Group President and CEO Ralph Mupita said: “The renewal of the various contracts across our markets into the next decade put MTN operations in the respective markets onto a more sustainable footing. We remain focused on ensuring our networks are well invested, have high availability and have the headroom to meet the growing and structural demand for data going into the future. These renewals are key to those priorities. We look forward to working constructively with IHS on the outstanding governance issues now that commercial arrangements have been concluded.”
Sam Darwish, Chairman & CEO, IHS Towers, said, “As our largest customer and longest serving partner, we are proud to have completed the renewal of all tenancies with MTN Group in our African markets. Today, we reinforce our strategic relationship and commit to increased operational stability, by securing our revenue streams into the next decade, and leveraging our shared innovation to deliver critical connectivity and support digital inclusion across the African continent. We are excited by the next phase of our commercial partnership and welcome the opportunity to work constructively for the benefit of the end user.”
Building on their 20+ year relationship as commercial partners, both companies will leverage their shared operational excellence and engineering expertiseto meet the end users’ increasingly sophisticated data demands. Together, IHS Towers and MTN Group have a track record of navigating complex operating environments and challenging macroeconomic conditions to deliver connectivity crucial to economic growth and digital inclusion.
Telecel Group Mobile and MTN Group are pleased to announce the completion of the transfer of MTN Guinea Bissau (“Spacetel”) to Telecel, marking a new chapter in the telecommunications landscape of the West African country. Telecel Group Mobile assets are fully managed by Telecel Group.
The acquisition process, which was closely monitored and approved by the Autoridade Reguladora Nacional (“ARN”), signifies Telecel’s commitment to expanding its footprints in the West African region. With this acquisition by Telecel Group Mobile, Telecel Group reaffirms its dedication to expanding its management footprint in Africa and delivering high-quality telecommunications services to the people of Guinea Bissau.
MTN Group President and CEO Ralph Mupita expressed satisfaction with the completion of the transaction: “We are delighted to hand over the reins of MTN Guinea Bissau to Telecel Group, a company with a strong track record. This disposal aligns with our strategic priority to accelerate portfolio transformation. We thank our employees, customers and all stakeholders for their support over the years and are confident that Telecel will build on the solid foundation we have established in Guinea Bissau.”
Telecel Group CEO, Moh Damush, highlighted the significance of this acquisition by Telecel Group Mobile, “We are excited to officially welcome MTN Guinea Bissau into the Telecel family of managed networks. This is a testament to our commitment to the African market and our vision of connecting people through reliable and innovative telecommunications solutions. We are dedicated to providing exceptional services that will enhance connectivity and support economic growth.”
Regulatory Compliance and Future Plans
Telecel Group Mobile under the management of Telecel Group, has successfully fulfilled all the technical and financial requirements stipulated by the ARN, ensuring a seamless transition and continued adherence to the highest industry standards. The acquisition will not only enhance Spacetel service offerings but also introduce new technologies and infrastructure improvements to benefit the consumers and businesses in Guinea Bissau.
As part of its commitment to the local community, Telecel Group Mobile plans to invest in expanding network coverage, improving service quality, and launching new products tailored to the needs of Guinea Bissau’s diverse population. This strategic investment aims to encourage digital inclusion and drive economic development in the region.
MTN Group is pleased to announce the appointment of Mohammed Rufai as Chief Executive Officer (CEO) of MTN Congo-Brazzaville and Ayham Moussa as Chief Operations Officer (COO) of MTN Nigeria, effective 1 September and 19 August 2024, respectively.
We also announce the voluntary early retirement of MTN Côte d’Ivoire CEO Djibril Ouattara and the departure of MTN Nigeria COO Hassan Jabber.
Mohammed Rufai is an accomplished professional with over 24 years of experience in ICT and an impressive track record in the telecoms industry. He joined MTN Nigeria in 2002 and subsequently moved to MTN Ghana, where he became Chief Technical Officer in 2015.
Currently, he serves as the Chief Technical Officer at MTN Nigeria. Mohammed has held various senior roles across the MTN Group, including Regional CTIO for Southeast Africa and Ghana. He also serves on the Board of Directors of Bayobab (Nigeria) and MTN Benin.
A driven leader, Mohammed is passionate about execution excellence, people development, and customer experience. He holds a Bachelor of Technology degree in Computer Science and certifications in Advanced Management and General Management. Mohammed is an alumnus of Lagos Business School, Cranfield University, UK, and the University of Cambridge, UK.
Mohammed assumes the reins at MTN Congo-Brazzaville from Ayham Moussa, who joins the MTN Nigeria executive leadership team at COO. Ayham replaces Hassan Jabber, who is leaving MTN. Ayham first joined MTN in 2002, returned in 2006 after a brief hiatus, and has since served the organisation in various markets, including Syria and Guinea-Conakry. He has held senior roles such as Chief Information Officer, Chief Technical and Information Officer, and CEO of MTN Congo-Brazzaville.
In his technology roles, Ayham played a key role in the country’s digital evolution from 2G to 4G, establishing MTN Congo-Brazzaville as a technology leader. His team’s efforts were recognised with awards for the best network in West and Central Africa and the MTN Group. As CEO, Ayham expanded MTN Congo’s leadership and business health, accelerating growth, margins, and operational excellence, while fostering strong relationships with various local stakeholders.
MTN Group President and CEO Ralph Mupita extended his thanks to Djibril for his contribution over nearly nine years at MTN, saying he had been instrumental in building the business in Congo-Brazzaville and leading the turnaround of MTN Côte d’Ivoire. He also thanked Hassan for his immense contribution to the success of the Group over 22 years, where his roles included CEO in markets such as Sudan, Guinea-Conakry and Afghanistan.
“On behalf of the MTN Group Board and Group Exco, I wish both Djibril and Hassan well in their future endeavours. I also congratulate Ayham and Mohammed on their appointments and wish them success in their new roles,” he said.
As we celebrate 30 years of being in business, connecting Africa and changing lives, MTN Group is pleased to publish our first People Report.
“Our people are our greatest asset. This report is a celebration of their unique spirit, the vibrant ‘Y’ello’ culture, and the incredible impact we’ve made together over the past 30 years,” said Ralph Mupita, MTN Group President and Chief Executive Officer.
Operating in 18 markets, MTN Group employs more than 17 500 people, representing more than 70 nationalities, and a multitude of languages. United by a shared identity as MTNers, the distinctive ‘Y’ello’ greeting, and unique corporate culture drive employees to deliver on MTN’s purpose – to enable the benefits of a modern connected life to everyone in our markets.
The inaugural People Report covers what it means to be part of our big and bold Y’ello Family, the power of Y’ello, explores trends shaping the HR landscape in Africa, and showcases innovative practices that have enabled us to create an inspired life for our people.
“Over the past three years, we have been transforming our workplace culture and creating an environment where employees can bring their authentic selves to work every day,” said MTN Group Chief Human Resources Officer Paul Norman. “This culminated in our Employee Value Promise ‘Live Inspired’.”
“As we celebrate our 30th anniversary, we are deeply humbled and grateful for how far we have come,” Norman added. “MTN has been built by thousands of dedicated, passionate, and talented individuals who have walked the journey with us. “
The word ‘Y’ello’ epitomises the indomitable spirit of MTN’s people and culture. The impact of this distinct Y’ello spirit fuels MTN’s evolution and uplifts its workplace, societies and communities. The company’s Live Inspired promise underscores its commitment to keeping this Y’ello spirit alive and creating exceptional experiences that bring joy and a sense of belonging, every day.
Please click below to read the full People Report:
MTN Group welcomed a high-level delegation from Nigeria’s National Institute for Policy and Strategic Studies (NIPSS) at our Johannesburg headquarters on Thursday.
The visit – co-hosted by the SA-Nigeria Business Chamber, the Department of Trade, Industry and Competition and the Nigerian embassy – is part of a NIPSS study tour to explore the intersection of digital technology, youth empowerment, and sustainable job creation in Nigeria.
Amb. Alexander T. Ajayi, Chargé d’Affaires of the Nigeria High Commission, led the delegation to the meeting, which included prominent government officials, military representatives, law enforcement personnel, and leaders from professional associations. The visit further strengthened the bilateral relationship between Nigeria and South Africa, presenting a significant opportunity for learning and collaboration.
“On behalf of the Nigerian government and the National Institute for Policy and Strategic Studies, I extend our heartfelt gratitude to MTN for hosting our delegation,” said Amb. Alexander Ajayi, reflecting on the significance of the visit. “Collaboration and strategic partnerships are crucial in harnessing the full potential of digital technology for socio-economic development. By integrating efforts, we can create robust frameworks that empower our youth, drive job creation, and foster sustainable growth.”
During the visit, the delegation engaged with MTN Group and MTN Nigeria executives, led by MTN Group Executive for Consumer Business Enzo Scarcella. They also toured MTN’s Technology Innovation Lab, witnessing cutting-edge advancements firsthand.
“We are honoured to host this esteemed delegation,” said Scarcella. “The visit underscores our commitment to supporting Nigeria’s digital transformation and economic growth. By working together, we can unlock the digital economy’s full potential and create a connected future for all Nigerians.”
The theme of the week-long study tour to South Africa – “Digital Economy, Youth Empowerment, and Sustainable Job Creation in Nigeria: Issues, Challenges, and Opportunities” – encourages dialogue and identifies new areas on which to collaborate to further both nations’ objectives to build digital societies for tomorrow.
A’isha Umar Mumuni, Chief Digital Officer at MTN Nigeria, reaffirmed the company’s pledge to boost digital infrastructure, driving Nigeria’s economic growth. She highlighted MTN’s commitment to advancing Nigeria’s digital landscape through investments in connectivity, digital platforms, and expanded financial services to rural areas, solidifying the company’s dedication to the country’s digital future.
MTN – which marks its 30th anniversary in 2024 – is committed to leveraging its expertise and resources to empower Nigerian youth, bridge the digital divide, and accelerate sustainable development, fostering hope and optimism for the future.
The Group has called on African governments to consider harmonising regulations – particularly in the tech sector – to support the increased capital investment in digital infrastructure required to accelerate economic development.
MTN Group – which started operating in South Africa in 1994 – has 18 operations, 17 of which are in Africa. The Group’s biggest subsidiary by subscriber numbers is MTN Nigeria, which had almost 78 million subscribers at the end of the first quarter of 2024. MTN Nigeria began commercial operations in August 2001.
Bayobab Group, a subsidiary of MTN Group, is pleased to announce that the network outage affecting services in Kenya, Uganda, Rwanda, and South Sudan has been fully restored. Service was restored on Tuesday, 25 June 2024, at 20:38 GMT.
We appreciate the patience and understanding of our valued customers during this disruption. We remain committed to providing reliable and resilient services and will continue to invest in infrastructure to mitigate future outages.
Thank you for your continued support.
Bayobab Group, a subsidiary of MTN, acknowledges that an outage in Kenya is partially affecting our ability to provide services in Kenya, Uganda, Rwanda, and South Sudan.
Our technical teams are working with partners to investigate and resolve the issue as quickly as possible. We are actively rerouting traffic to minimise disruption.
We regret the inconvenience caused and appreciate your patience as we work to restore service. We will provide updates as more information becomes available.
Thank you for your continued support.
In honour of our 30th anniversary, MTN Group is proud to announce a special edition of our flagship employee volunteerism programme, “21 Days of Y’ello Care,” now extended to “30 Days of Y’ello Care.” This year’s campaign, themed “Learn Today, Lead Tomorrow,” focuses on bridging the educational divide in underserved communities across MTN’s operational footprint.
2024 marks a significant milestone for MTN, celebrating 30 years of innovation, connectivity, and social impact. The “30 Days of Y’ello Care” initiative further demonstrates our commitment to leveraging technology and resources to empower communities and create a better, more inclusive future for all.
MTN recognises the transformative power of education. Through the “Learn Today, Lead Tomorrow” campaign, we aim to provide essential digital learning resources, reliable internet access, and engaging educational platforms to students and educators in underserved areas. By doing so, we are opening doors to opportunity and fostering the next generation of leaders.
“The theme – Learn Today, Lead Tomorrow, embodies our passion for creating a world where every young person has access to the tools required to reach their full potential,” said MTN Group Chief Sustainability & Corporate Affairs Officer, Nompilo Morafo. “The 2024 campaign targets educational inequity, reflecting our deep-rooted commitment to empowering communities. It’s about fostering the next generation of innovators, entrepreneurs, and leaders who will shape their communities and the global landscape for years to come.”
The “30 Days of Y’ello Care” campaign will run from June 1st to 30th, 2024. Thousands of MTN employees will unite in this shared mission, participating in activities designed to make a lasting impact on educational access and quality.
MTN marks three decades of operations, celebrating a legacy of connecting people, changing lives, and driving economic growth across South Africa and the African continent.
“As we reflect on this significant milestone, we express our sincere gratitude to all our stakeholders, past and present, across multiple jurisdictions, for their support,” said MTN Group President and Chief Executive Officer Ralph Mupita. “We couldn’t have achieved this remarkable success without you.”
Since its inception in 1994, MTN has evolved from a small South African start-up with 20 employees into a global telecommunications leader, employing over 17,500 individuals representing more than 70 nationalities across 18 diverse markets.
In South Africa, MTN’s impact has been profound. The company’s network now reaches 97% of the population, providing a foundation for digital inclusion and economic empowerment. By investing in cutting-edge technologies like 4G and 5G, MTN has ensured that South Africa remains at the forefront of technological advancement. A recent study by KPMG showed that MTN South Africa’s contribution to the country’s GDP is substantial, making it a key player in the national economy.
The evolution of handsets and the proliferation of apps have democratised access to information and essential services, from financial solutions to healthcare, education, and entertainment. This has been a game-changer for individuals and businesses alike.
MTN’s influence extends far beyond South Africa. In 2023, the MTN Group recorded over R220 billion (more than US$11 billion) in revenue, a testament to its market leadership and the growing demand for digital services across Africa. This success has driven the company’s market capitalisation to over R150 billion, solidifying its position as one of the continent’s most valuable companies.
Across Africa, MTN connects millions, empowering them with essential communication tools and access to vital services. More than 149 million people rely on MTN’s network for data access, fuelling a digital transformation that is reshaping industries and societies. Additionally, MTN Mobile Money (MoMo) provides over 65 million individuals with access to financial services, driving financial inclusion and economic empowerment in underserved communities.
MTN’s commitment to socio-economic development is evident everywhere. In 2023, the Group’s total tax contribution to governments across markets was nearly R62 billion (over US$3.3 billion), supporting vital public services and infrastructure development. MTN’s operations also generated some R159 billion in economic value, creating jobs, stimulating economic activity, and fostering digital innovation.
From the outset, the Group has been driven to make a social impact. Launched in 2001, the first MTN Foundation had an annual budget of R22 million. In 2023, MTN spent ten times that – R220 million – in corporate social responsibility across markets, with a special focus on developing digital skills to enable the digital economy.
Furthermore, both MTN Group and MTN South Africa have achieved Level 1 Broad-Based Black Economic Empowerment status, underscoring their commitment to diversity, inclusion, and social transformation.
MTN’s dedication to giving back is embodied in the annual “21 Days of Y’ello Care” initiative, which has been extended to 30 days this year to commemorate the 30th anniversary. Kicking off on 01 June 2024 under the theme “Learn Today, Lead Tomorrow: Education for Rural and Remote Communities,” this initiative mobilises MTN employees across the continent to dedicate their time and resources to enhance educational opportunities. This year, the focus is on bridging the educational divide in rural and remote areas, providing digital learning tools, and supporting educational infrastructure to empower the next generation of leaders within these communities.
MTN’s 30-year journey is a testament to the transformative power of technology and the unwavering spirit of innovation. Looking to the future, MTN remains dedicated to bridging the digital divide, empowering individuals and communities, and driving Africa’s sustainable and inclusive progress through cutting-edge digital solutions.