MTN Group says its service revenue grew by 17.8 percent in constant currency terms to ZAR 42.3 billion in the first quarter. EBITDA rose by 21.3 percent, and the EBITDA margin widened to 44.2 percent from 42.7 percent. MTN announced a strong and resilient operational and financial performance, with growth in service revenue exceeding medium-term guidance, driven by gains in data and fintech revenue.
The overall group results were supported by double-digit service revenue growth from its large operations and continued focus on expense efficiency programmes. The operator still saw a 1.7 million decrease in subscriber numbers to 277.9 million, as MTN Nigeria’s subscribers declined because of restrictions on new SIM sales and activations in that market.
Active data subscribers declined by 1.3 million to 115.6 million, while the number of mobile money customers increased by 0.2 million to 46.6 million. Excluding MTN Nigeria, MTN Group total subscribers and active data subscribers increased by 3.4 million and 1.3 million respectively.
MTN South Africa recorded strong performances across the consumer, enterprise and wholesale businesses, the company said. Underpinned by market share gains and a subscriber base of 32.1 million, an 11.8 percent increase in service revenue and good cost containment drove a 3.2 percentage point expansion in MTN SA’s EBITDA margin to 39.8 percent.
The group said it remains committed to its asset monetisation programme and is confident of making progress on realising the 29 percent stake in tower company IHS in the short term. IHS continues to explore an IPO of its shares in line with its public statement made in August 2020.
MTN said its focused on executing its Ambition 2025 strategy, driving growth, de-leveraging the Holdco balance sheet and unlocking value, whilst navigating the impacts of the pandemic.
