MTN Group has reported its operating performance for the year 2023, declaring a total dividend of 330 cents per share despite factors such as inflation in multiple markets and currency devaluation, especially of the Nigerian Naira, proving to be a challenge.
The company witnessed sustained high demand for data and fintech services throughout the year. Active data subscribers increased by over 9%, reaching 150 million, while active Mobile Money users grew by 5% to 72.5 million. This contributed to a total subscriber base of 295 million across the group’s markets.
Data traffic on MTN’s networks surged by more than a third, averaging more than 6GB per user per month. To accommodate this growth and maintain network quality, MTN deployed significant capital expenditure of R41 billion.
The volume of fintech transactions also saw an increase, rising by around a third to 17.6 billion, with the value reaching US$272 billion. MTN South Africa, despite facing challenges like load shedding, invested R10 billion in network expansion and power resilience, achieving around 95% network availability.
In terms of strategic development, MTN Group made significant progress in its fintech and fibre businesses. MTN Group President and CEO, Ralph Mupita, highlighted the partnership with Mastercard, with the latter investing up to US$200 million for a minority stake in MTN Group Fintech.
“We are excited about this partnership, particularly the commercial agreements, which we expect to support the accelerated growth of our fintech business.” Mupita added about MTN fibre, saying “in 2023, we also advanced our work to structurally separate the fibre business, Bayobab, with engagements to secure regulatory clearances in key markets being the main priority.”
Financially, MTN Group’s service revenue grew by 13.5% in constant currency terms to R210 billion. Earnings before interest, tax, depreciation, and amortization (EBITDA) increased by almost 10%, reaching R90 billion.
Looking ahead, Mupita reiterated MTN’s focus on executing its Ambition 2025 strategy, stressing the company’s commitment to capturing the growing demand for data and fintech services across Africa. Despite anticipating continued macroeconomic challenges in 2024, including currency volatility and inflation, MTN plans to invest between R35-39 billion to position itself for future growth.
Mupita concluded by expressing optimism about the outlook for the fintech business, particularly with the partnership with Mastercard, which is expected to facilitate faster scaling and commercial launches of new services across MTN’s footprint.
Source: MTN Group
By Derrick Kafui Deti – Digital Economy Magazine
