MTN delivers strong first quarter results

The South African telecommunications operator MTN announced this Wednesday, May 5, an increase of 18% of its turnover in the first quarter. This performance was driven by double-digit growth in the group’s commercial operations in South Africa, Nigeria and Ghana.

“The overall group results were supported by double-digit service revenue growth in our major operations and a continued focus on our spend efficiency program. We are encouraged in particular by the strong performance of MTN South Africa, as well as the acceleration of data and fintech services across the group during the period, ”said the group chairman and CEO, Ralph Mupita.

In a statement announcing the results to shareholders, MTN also said it plans to complete the sale of its tower infrastructure in South Africa in the third quarter of 2021.

The group reported sales of 42.3 billion rand ($ 2.93 billion) for the quarter ended March 31, an increase of 17.8 percent. Revenues from fintech operations, which represent 10% of total revenue, also grew 31% thanks to an 87% increase in online financial transactions.

MTN declares to have realized a profit before interest, taxes and depreciation (EBITDA) up 21.3%. The EBITDA margin widened to 44.2%, compared to 42.7% from the previous year. The company’s shares have risen more than 200% since the market collapsed in mid-March of last year.

In its press release, the operator announces that it has recorded growth in voice and data revenues of 7% and 32.7%, respectively, in a context of the Covid-19 pandemic which has increased the demand for online operation, teleworking in particular.

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