MTN has noted encouraging acceleration in operational momentum for the quarter ended 31 March 2025.
Service revenue was up 19,8%, underpinned by growth in MTN Nigeria and MTN Ghana, and fintech sustained robust performance.
The group EBIDTA margin increased 5,3 percentage points to 44,1%.
Group president and CEO Ralph Mupita says strong operational execution was supported by some improvement in the macro environment.
“MTN reported a robust performance for Q1 2025, anchored in the continued strong execution of our strategic and operational priorities, and buoyed by improved macroeconomic conditions in key markets.
“We invested R7,5-billion (ex-leases) of capex in our networks and platforms in support of our commercial initiatives, to sustain the encouraging strong growth in our business.”
He says blended inflation for the Group averaged 14,2% in Q1 (Q1 2024 13,6%), which was broadly stable on a sequential basis versus the 14,5% recorded in Q4 2024.
From a local currency perspective, despite fluctuations in the rand against the US dollar during the period, the average rate of R18,64/US$ was largely in line with Q1 2024 (R18,81/US$). Although the average naira of N1 502/US$ was weaker on a YoY basis compared to Q1 2024 (N1 365/US$), the closing rate of N1 537/US$ at quarter end was stable on a sequential basis versus December 2024. The Ghana cedi weakened by 21,9% against the US dollar, while the Ugandan shilling was 5,1% stronger in the quarter.
“From a regulatory perspective, we were pleased with the approval of price adjustments for telecom operators in Nigeria, which the business started to implement from mid-February 2025, with the majority
of adjustments taking effect in March,” Mupita says. “Post the quarter end, we were also encouraged by the removal of the e-levy tax on MoMo transactions in Ghana – effective 2 April 2025 – which we believe will stimulate faster growth in the ecosystem and deepening of financial inclusion in the country.
“In markets like Uganda and Rwanda, the business performance was impacted by regulatory reductions to mobile termination rates (MTRs).”
Mupita says the groups achieved strong momentum in the business, with growth in data traffic of 30,4% (43,3% excluding JVs) and a 13,9% increase in fintech transaction volumes in Q1 2025.
“Our total subscriber base expanded by 4,7% to 296,8-million,” he adds.
The Group delivered a 19,8% increase in service revenue, led by an acceleration in MTN Nigeria (up 40,4%) and MTN Ghana (up 39,5%).
MTN South Africa continued to navigate competitive challenges, most notably in prepaid, with service revenue up by 2,6%, while MTN Uganda’s service revenue of 13,5% was impacted by MTR reductions.
MTN Sudan continues to operate in conflict conditions, but saw a more than four-fold increase in service revenue from a depressed base.
Data was once again a key driver of Group growth, with revenue up by 28,7% in Q1, driven by continued structural demand for data and active data subscriber growth of 9,1% to 161,7-million.
“In our fintech business, MoMo MAU increased by 1,1% to 62,2-million, as we continue to reduce incentives to drive a healthier customer base and increase profitability in markets like South Africa and Nigeria,” Mupita says. “In this regard, we are pleased with the improved quality of our user base, reflected in improved engagement and monetisation.”
Fintech revenue increased by 25,2% in Q1 2025, reflecting continued strong expansion in advanced services, which grew revenue by 36,5%.
Group EBITDA was 33% higher, reflecting a 5,3 percentage point improvement in margin to 44,1% (Q1 2024: 38,8%), which Mupita says reflected the strong service revenue growth, improved stability in the macroeconomic environment and lower device cost of sales in MTN SA.
The MTN Group made meaningful strides with some of its strategic priorities during the quarter.
“Within the connectivity business, we entered into agreements to share network infrastructure in Uganda and Nigeria, while ensuring compliance with local regulatory and statutory requirements,” Mupita says. “These sharing agreements target improved network cost efficiencies, expanded coverage and the provision of enhanced mobile services to millions of customers, particularly those in remote and rural areas.
“In this regard, we are also strengthening our partnerships with LEO satellite providers, including Starlink, Eutelsat OneWeb, AST & Science and Lynk, to efficiently expand services to enterprises and our communities.
“This aligns with our commitment to deepen digital inclusion in the markets we serve, as well as enable their socioeconomic development,” Mupita adds.
“In addition to the business-to-business (B2B) services partnerships already in place and previously announced, we accelerated the work to leverage agreements established to collaborate on the provision of consumer services in our markets. We were excited to have successfully conducted Africa’s first satellite-to-phone call trial collaboration between MTN SA and Lynk.”
The structural separation of MTN’s fintech business continues to progress, and the process is well-advanced to secure shareholder and regulatory approvals in key markets. “Completion of these important milestones will enable the operations to satisfy regulatory requirements and the faster growth of the businesses, boosted by strategic partnerships,” says Mupita.