In This Article:
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Service Revenue Growth: 13.8% year-on-year in constant currency; excluding Sudan, 14.4%.
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Data Revenue Growth: 21.9% year-on-year in constant currency.
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Fintech Revenue Growth: 28.5% year-on-year.
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EBITDA Margin: Improved to 39.9% in H2 from 36.5% in H1.
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Adjusted Headline Earnings Per Share: ZAR8.16, down from ZAR3.15 per share last year.
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Dividend: Approved at ZAR3.45 per share, with an anticipated increase to ZAR3.70 for FY2025.
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Group Leverage: 0.7 times net debt to EBITDA.
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Holdco Leverage: 1.4 times, within the guided range.
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Cash Upstreaming: ZAR14 billion for the year, with ZAR7.5 billion in H2.
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CapEx: ZAR29.9 billion excluding leases, with a CapEx intensity of 15.9%.
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South Africa Service Revenue Growth: 3.1% year-on-year.
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Nigeria Service Revenue Growth: 35.6% in constant currency.
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Uganda Service Revenue Growth: 19.6% with a margin of 52%.
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Ghana Service Revenue Growth: 34% with a margin in the upper 50%.
Release Date: March 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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MTN Group Ltd (MTNOF) reported strong service revenue growth of 13.8% in constant currency, with a notable acceleration to 15.5% in the second half of 2024.
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The company achieved a significant improvement in free cash flow in the second half of the year, reaching ZAR21.5 billion compared to ZAR9.9 billion in the first half.
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MTN Group Ltd (MTNOF) successfully renegotiated tower lease agreements in Nigeria, realizing savings of ZAR1.3 billion in operating expenses.
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The fintech segment showed robust growth, with service revenue rising by 28.5% and advanced services growing by 52% year-on-year.
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The company maintained a strong balance sheet with Group net debt to EBITDA at 0.7 times, well within the loan covenant limit of 2.5 times.
Negative Points
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MTN Group Ltd (MTNOF) faced significant macroeconomic challenges, including the sharp devaluation of the naira, which negatively impacted reported earnings.
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The company reported a decline in reported EBITDA by 33.5% due to currency volatility and inflationary pressures.
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MTN Nigeria experienced a decline in EBITDA margin by 10.3 percentage points to 38.9%, primarily due to the naira devaluation and high inflation.
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The South African prepaid segment underperformed, with the company acknowledging the need for improvement in specific regions.
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MTN Group Ltd (MTNOF) faced operational challenges in Sudan due to ongoing conflict, resulting in a ZAR11.7 billion impairment.
Q & A Highlights
Q: Can you explain the impact of currency translation on your earnings and whether this is a target for future performance? A: Tsholofelo B. L. Molefe, Group CFO, explained that the ZAR18 earnings figure was an illustrative translation impact, showing what earnings would have been without currency effects. It is not a target, and the company maintains its guidance of mid-teens growth.