MTN’s latest quarterly report paints a mixed picture, with challenges stemming from currency devaluation in key markets like Nigeria. Despite a 52.8% decline in revenue from Nigeria, largely due to currency weakness, MTN demonstrated resilience with a 11.1% growth in group service revenue in constant currency terms. The company invested R5.4 billion in its networks and platforms, driving impressive growth in data traffic and fintech transaction volumes. With a subscriber base of 287.6 million and a 7.8% increase in active data subscribers, MTN shows promise for long-term investors.
However, the EBITDA margin declined by 2.5 percentage points to 38.1%, impacted by inflation and forex depreciation, particularly in Nigeria. Despite global geopolitical tensions and network disruptions in markets like Sudan, MTN remains optimistic, citing a reduction in the blended rate of inflation across its footprint. Investors should monitor how MTN navigates currency fluctuations and geopolitical risks while considering adding MTN shares to their portfolio for potential growth in the telecommunications sector.
Read the full article on the Daily Investor.