MTN swings to first-half profit, raises guidance

Customers are seen at an outlet of South Africa's MTN Group at the Mall of the South in Johannesburg, South Africa on 4 November 2022. Reuters/Siphiwe Sibeko

South Africa-headquartered MTN reported headline earnings per share of 645c in the six months to 30 June, compared to a headline loss of 256c a year earlier.

MTN names new SA CEO as Molapisi shifts to tech role

12 hours

Earnings before interest, tax, depreciation and amortisation (EBITDA) margins expanded by 7.1 percentage points to 44.2%, driving EBITDA growth of 42.3% in constant currency to R46.7bn ($2.65bn).

Group service revenue grew by 23.2% to R105.1bn as data and fintech revenues increased by 36.5% and 37.3%, respectively.

The Nigerian naira, which had decimated its largest unit's profit in the previous year, exhibited greater stability against the US dollar in the first half. Ghana's cedi, meanwhile, strengthened year-to-date against the rand and the US dollar, group CEO Ralph Mupita said.

The approval of price adjustments in Nigeria, which were phased in during the reporting period, largely benefiting the second quarter, boosted MTN Nigeria and the group's service revenue growth.

MTN South Africa continued to navigate competitive pressures in its prepaid segment and reported service revenue growth of 2.3%.

The operator also raised its medium-term guidance for group service revenue growth to a percentage in at least the high-teens from at least the mid-teens.