MTN GROUP REVENUE UP TO E80BN

MBABANE - The MTN Group yesterday reported service revenue growth of 9.4 per cent to E80 billion for the six months ended 30 June.
The group’s results are presented in line with its operational structure.

This is South Africa,
Nigeria, the Southern and East Africa and Ghana (SEAGHA) region, the West and Central Africa (WECA) region and the Middle East and North Africa (MENA) region and their respective underlying operations.

The SEAGHA region includes Ghana, Uganda, Zambia, Rwanda, South Sudan, Botswana (joint venture-equity accounted), Eswatini (joint venture-equity accounted) and Business Group.

 The WECA region includes Cameroon, Ivory Coast, Benin, Congo-Brazzaville, Liberia, Guinea Conakry and Guinea Bissau.
The MENA region includes Iran (joint venture-equity accounted), Syria, Sudan, Yemen, and Afghanistan.
Although Iran, Botswana and Eswatini form part of their respective regions geographically and operationally, they are said to be excluded from their respective regional results because they are equity accounted for by the group.

This is according to the MTN condensed consolidated financial results, which was also shared on various platforms that include Business Day of South Africa.
It was reported that headline earnings per share of 430 cents was up 120.5 per cent.

MTN Group further announced that it would focus on Africa and exit the Middle East over the medium-term. “As we navigate the pandemic (COVID-19) and its effects, we have prioritised looking after our people, customers and networks while focusing on efficiencies,” said MTN Group president and chief executive officer Rob Shuter.

“As part of our ongoing portfolio review, we believe the group is best served to focus in the future on our pan-African strategy. We will therefore be exiting the Middle East in an orderly manner over the medium-term. As a first step we are in advanced discussions to sell our 75 per cent stake in MTN Syria,” Shuter was quoted saying.

Meanwhile, the MTN Group added 11 million subscribers in the first six months of the year to reach a total base of 262 million. By end June 2020, MTN had 102 million active data users and 38 million active Mobile Money users.
The group said it invested E10 billion in capital expenditure across all markets and brought a further 54 million people into 3G and 4G coverage.

Decline

MTN South Africa, on the other hand, recorded a 2.5 per cent decline in service revenue, as a result of the discontinuation of the group’s roaming agreement with Telkom and effects of the continued accounting for Cell C revenue on a cash basis.
“The continued turnaround in MTN SA’s consumer and enterprise businesses has, however, supported a pleasing improvement in sequential service revenue growth trend in the second quarter,” said Shuter.

At June 30, 2020, MTN said it had not recognised revenue amounting to R673 million for network roaming services provided to Cell C due to the reassessment of revenue recognition criteria and in compliance with IFRS 15. In total, MTN recognised R788 million of revenue from Cell C during the period.
For the group’s South Africa operation, data revenue increased by 16.7 per cent, however, fintech revenue decreased by 1.2 per cent, and digital revenue decreased by 10.3 per cent.

It was gathered that yesterday members of the MTN Group that include Eswatini were to virtually discuss the results during lunch time. MTN Corporate Affairs Manager Mandla Luphondvo politely said the Group CEO was the rightful person to comment on the results.
“Only Group President and CEO Rob Shuter or Group Corporate Affairs is at liberty to comment,” Luphondvo said briefly.

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