MTN increased its subscriber base by 10,6-million over the six-month period ended 30 June 2020, to 261,5-million.
The group reported service revenue growth of 9,4%, with EBITDA margin up by 6,4 percentage points to 49,7% EBITDA (before once-off items) growing by 21%.
Reported group HEPS is 430 cents per share, up 120,5%, while non-operational impacts increased HEPS by 46 cps.
However, the group has not declared an interim dividen owing to uncertainties resulting from Covid-19 impacts.
Group president and CEO, Rob Shuter comments: “MTN delivered strong results for the period against the backdrop of difficult trading conditions, exacerbated by the unprecedented socio and macroeconomic challenges caused by the Covid-19 pandemic.
“With service revenue growth of 9,4% and EBITDA growth of 10,9%, the group’s EBITDA margin improved by 1,2pp to 43,1% as our group efficiency programme continued to bear fruit. Group leverage remained stable at a group net debt to EBITDA ratio of 1.1x. The holding company (holdco) leverage ratio increased to 2,7x from 2,2x at December 2019, impacted by the weaker rand and lower upstreaming from operating companies.
“We invested R10,1-billion in our networks, focussing on capacity and resilience as Covid-19 lockdown constraints impacted network rollout.”
He says MTN Ghana delivered a strong performance, while MTN Nigeria achieved continued solid growth in a challenging environment.
“MTN South Africa (MTN SA) reported a pleasing turnaround in its underlying consumer and enterprise business units as well as an expansion in EBITDA margin.”
With 261,5 million subscribers overall, MTN recorded 38,3-million MoMo users and in Nigeria added 114 000 agents to reach 222 000 registered agents.
“As we navigate the pandemic and its effects, we have prioritised looking after our people, customers and networks while focusing on efficiencies,” Shuter says. “Work from home programmes continue for our people; our Y’ello Hope Packages are helping to ease customers’ financial pressures and we continue to support various other initiatives across our markets to limit the impact of the pandemic on society as a whole.”
MTN has resolved to simplify its portfolio and focus on its pan-African strategy and will therefore be exiting its Middle Eastern assets in an orderly manner over the medium-term, Shuter says. “As a first step we are in advanced discussions to sell our 75% stake in MTN Syria.”