South African telecommunications giant MTN Group reported a sharp rise in first-quarter core earnings on Tuesday, supported by strong performances in Nigeria and Ghana as well as tighter cost controls across its operations.
The company, Africa’s largest mobile operator with more than 310 million customers in 16 countries, said earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 27.9 percent in constant currency terms during the three months to March 31.
EBITDA reached 27.6 billion rand (US$1.67 billion), while the group’s EBITDA margin expanded by three percentage points to 47.6 percent.
Service revenue, excluding currency effects, rose 21.1 percent to 56.8 billion rand, driven largely by strong growth in key West and Central African markets.
MTN Nigeria recorded service revenue growth of 41.7 percent, while MTN Ghana posted a 35.7 percent increase.
More Read
Operations in Cameroon and Côte d’Ivoire also delivered solid performances, with service revenue growth of 14.4 percent and 18.3 percent respectively.
The results underline the increasing importance of MTN’s regional operations outside South Africa, particularly in fast-growing data and mobile financial services markets.
Data revenue remained the biggest contributor to overall growth, climbing 35.4 percent during the quarter as demand for mobile internet services continued to rise across the continent.
More Read
Voice revenue increased by 4.7 percent, while financial services revenue grew by 20 percent, reflecting the expanding use of mobile money and digital payment platforms in several African markets.
In South Africa, however, the company continued to face pressure in the prepaid market amid intense competition and constrained consumer spending.
Service revenue growth at MTN South Africa edged up by just 0.7 percent.
MTN said its turnaround strategy in the prepaid segment was beginning to show results, with efforts focused on improving distribution networks, refreshing customer offerings and tightening credit management.
The company said growth in cash recharges had started to offset declining usage of XtraTime, a service allowing prepaid customers to borrow airtime and data bundles.
MTN added that the South African business was showing early signs of stabilisation despite ongoing market challenges.
More Read
The telecoms operator also addressed concerns over energy supply disruptions, which have affected businesses in several African countries due to unreliable electricity networks and fuel shortages.
MTN said it was working closely with suppliers and partners to secure sufficient diesel supplies needed to power network infrastructure and maintain service continuity.
The company relies heavily on backup power systems in some markets to ensure uninterrupted mobile and internet services during electricity outages.
MTN’s latest results come as African telecom operators continue to benefit from growing demand for digital connectivity, mobile payments and data services, even as economic pressures and currency volatility remain major challenges in several markets.
Investors are also closely watching the company’s operations in Nigeria, its largest market, where regulatory reforms and currency adjustments have significantly influenced financial performance over the past year.
