Quarterly update for the period ended 30 September 2023
MTN Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1994/009584/06)
(Share code MTN)
(ISIN: ZAE000042164)
(MTN or the Company or the Group)
Quarterly update for the period ended
30 September 2023
MTN is a pan-African mobile operator with the strategic intent of ‘Leading digital solutions for Africa’s progress’.
We have 290 million customers in 19 markets and are inspired by our belief that everyone deserves the benefits
of a modern, connected life.
Highlights
– Group service revenue grew by 9.0% (14.2%*)
– voice revenue declined by 0.6% (up 4.3%*)
– data revenue growth of 15.3% (23.1%*)
– Fintech revenue growth of 20.0% (22.1%*)
– Total subscribers increased by 1.8% to 290.1 million
– Active data subscribers up by 6.7% to 144.6 million
– Active Mobile Money (MoMo) monthly active users (MAU) up by 0.7% to
63.5 million
– Data traffic increased by 20.1% to 10 612 PB
– Fintech transaction volumes increased by 33.9% to 12.7 billion
* Constant currency information after accounting for the impact of the pro forma adjustments as defined and included throughout this Stock Exchange
News Service (SENS) of the JSE Limited (JSE) announcement.
YTD 3Q 23
YTD % change 3Q 23 % change
YTDˆ YTDˆ % change constant % change constant
Rm 3Q 23 3Q 22 reported currency reported currency
Group service revenue 156 311 143 453 9.0 14.2 (4.8) 12.3
– South Africa 30 993 30 192 2.6 2.6 4.1 4.1
– Nigeria 58 255 55 145 5.6 21.4 (26.7) 20.9
Group EBITDA~
(before once-off items) 70 308 68 398 2.8 11.2 (13.8) 6.2
– South Africa# 13 866 14 706 (5.7) (5.7) (3.6) (3.6)
– Nigeria 30 314 29 636 2.3 17.6 (34.4) 8.2
Group EBITDA margin 42.8% 45.3% (2.5 pp) (1.0 pp) (4.3 pp) (2.0 pp)
– South Africa# 36.4% 39.5% (3.1 pp) (3.1 pp) (1.9 pp) (1.9 pp)
– Nigeria 51.7% 53.6% (1.9 pp) (1.9 pp) (5.8 pp) (5.8 pp)
Capital expenditure (capex,
IFRS 16) 43 921 38 716
– Capex (ex-leases) 26 166 23 837
– Capex intensity (ex-leases) 15.9% 15.8%
~ Group earnings before interest, tax, depreciation and amortisation
^ Year-to-date
# Excludes tower sale gain
Unless otherwise stated, financial and non-financial growth rates are presented on a constant currency basis and are
year-on-year (YoY, 9M to March 2023 versus 9M to March 2022).
Service revenue excludes device and SIM card revenue. Data revenue is mobile and fixed access data, and excludes roaming
and wholesale. Fintech includes MoMo, insurance, airtime lending and e-commerce. Active data users are a count of all
subscribers at a point in time which had a revenue generating event in the specified period (90 days) prior to that point in time
and during the past 30 days had data usage greater than or equal to five megabytes. MoMo users are 30-day active users.
Group President and CEO Ralph Mupita comments:
Navigating a challenging Q3; Improved network availability in South Africa
‘MTN maintained a resilient performance in the first nine months of 2023, as inflation remained elevated across
our markets, with an average blended rate of 17.3% year-to-date (YTD) compared to 14.2% in 2022. Encouragingly,
in Q3, inflation has started to show some signs of subsiding across our footprint, led by markets such as South
Africa, Ghana and Uganda.
Foreign exchange (forex) markets remained volatile in the period, with local currencies under pressure against the
US dollar and the availability of forex constrained particularly in Nigeria. The rand closed September 2023 at
R18.90 (December 2022: R17.05) and the naira closed at N777/US$ (December 2022: N461). Naira devaluation
had a material impact on our results, particularly in Q3.
Power outages in South Africa continued to be a challenge in the period, however, the significant progress made
in our network resilience programme – which is tracking slightly ahead of plan – combined with lower loadshedding
in Q3 (compared to H1), has supported average network availability of above 95%.
Solid operational execution and performance
We remained focused on the execution of our Ambition 2025 strategy to navigate the ongoing macro challenges
in our operating environment. We invested capex of R26.2 billion YTD in our networks and platforms and sustained
the growth in our business.
As at the end of the period, 11 of our markets have leading network NPS measures including Nigeria, Ghana and
Uganda. South Africa’s NPS remains #2, with a narrowing gap to #1. The capex intensity of 15.9% achieved in the
period is within our medium-term target range of 15-18%. We drove data traffic and fintech transaction volumes
growth of 20.1% (up 35.0% excluding JVs) and 33.9% respectively.
The Group delivered an increase in service revenue of 14.2%*, driven by steady growth of 2.6% from MTN South
Africa (MTN SA) as well as strong growth in MTN Nigeria (up 21.4%*) and MTN Ghana (up 36.6%*). The slowdown
in Q3 service revenue growth (up 12.3%*) was impacted by the conflict in Sudan. Excluding MTN Sudan, the Group
service revenue growth in Q3 would have been 13.9%*.
Our subscriber base increased by 1.8% to 290.1 million. This was affected by subscriber registration regulations
in Ghana and Nigeria, as well as a decline in subscribers in Sudan amid the ongoing conflict. Active data subscribers
were up by 6.7% (to 144.6 million), supporting increased traffic and data revenue growth.
MoMo active users increased by 0.7% YoY to 63.5 million impacted by a strategic focus shift from agent banking
to wallet in Nigeria as well as the implementation of a change in definition of activity across the group that
impacted Côte d’Ivoire and South Africa adversely. Transaction volume and value increased by 33.9% and 57.1%
respectively delivering service revenue growth of 22.1%* YoY (up 23.0%* in Q3 2023) with advance services
contributing 25.7% (2022: 20.7%). Overall, we are pleased with the continued acceleration in fintech.
Overall Group EBITDA increased by 11.2%*. The EBITDA margin was 43.2%* YTD (Q3 2022: 44.2%*), impacted by
upward pressure on costs due to inflation and forex depreciation, network resilience costs in MTN SA and the
impact on operations from the conflict in Sudan. These impacts were partially mitigated through our expense
efficiency programme, which achieved sustainable cost savings of R1.5 billion YTD – achieving our target for 2023.
Balance sheet and liquidity positions
The Group net-debt-to-EBITDA ratio of 0.5x, as at 30 September 2023 (30 June 2023: 0.4x), remained well within
our loan covenant limit of 2.5x. Holding company (Holdco) leverage held firm at 1.5x (30 June 2023: 1.5x), supported
by cash upstreamed from operations. We also issued local rand bonds amounting to R1 billion under the DMTN
programme to bolster liquidity at the Holdco. We maintained a healthy liquidity position, with headroom of
R45.6 billion as at 30 September 2023.
We upstreamed cash totalling R3.8 billion from our operating companies (Opcos) in Q3, bringing the total cash
upstreamed YTD to R 8.0 billion.
Medium-term guidance, strategic priorities and FY 23 dividend
We are focused on delivering on our medium-term guidance and executing on our strategic objectives.
The momentum in MTN SA is encouraging and is on a steady path of improving top-line growth and profitability.
Post the period end, MTN Nigeria has streamlined its data bundle mix and launched new offerings that should
help to optimise pricing in Q4 and beyond. The business remains engaged with authorities to secure tariff
increases.
We are on track to deploy capex broadly in line with our FY2023 guidance of R40.1 billion, based on current
currency assumptions, with an anticipated capex intensity within our medium-term target range of 15-18%. In
building on our financial resilience, we delivered on our target of R1.5 billion in expense efficiencies for FY2023
and are targeting an additional R7-8 billion in savings over three years, from 2024 onwards.
We continue with focus on our strategic priorities of exiting selected markets in our current portfolio, completing
the minority investment in Group Fintech with Mastercard, and liability management of Holdco debt. The Group
board continue to anticipate paying a minimum ordinary dividend for FY2023 of 330cps’.
Any forward looking financial information disclosed in this results announcement, including the dividend guidance,
has not been reviewed or audited or otherwise reported on by our external auditor.
Certain information presented in this quarterly update constitutes pro forma financial information and constant
currency information. This pro forma financial information and constant currency information has not been
audited or reviewed or otherwise reported on by MTN’s external auditor. The responsibility for preparing and
presenting the pro forma financial information and constant currency information for the completeness and
accuracy of the pro forma financial information and constant currency information is that of the directors of MTN.
This is presented for illustrative purposes only. Because of its nature, the pro forma financial information and
constant currency financial information may not fairly present MTN’s financial position, changes in equity, and
results of operations or cash flows.
Constant currency information has been presented to remove the impact of movement in currency rates on the
Group’s results and has been calculated by translating the prior financial reporting period’s results at the current
period’s average rates. The measurement has been performed for each of the Group’s currencies, materially being
that of the US dollar and Nigerian naira. The constant currency growth percentage has been calculated based on
the prior period constant currency results compared to the current year results. In addition, in respect of MTN
Irancell, MTN Sudan and MTN South Sudan the constant currency information has been prepared excluding the
impact of hyperinflation. The economies of Sudan, South Sudan and Iran were assessed to be hyperinflationary
for the period under review and hyperinflation accounting was applied.
The Group’s results and segmental report are presented in line with the Group’s operational structure. The Group’s
underlying operations are clustered as follows: South Africa (SA), Nigeria, the Southern and East Africa (SEA)
region, the West and Central Africa (WECA) region and the Middle East and North Africa (MENA) region and their
respective underlying operations.
The SEA region includes Uganda, Zambia, Rwanda, South Sudan, Botswana (joint venture-equity accounted),
eSwatini (joint venture-equity accounted) and Business Group. The WECA region includes Ghana, Cameroon,
Côte d’Ivoire, Benin, Congo-Brazzaville, Liberia, Guinea-Conakry and Guinea-Bissau. The MENA region includes
Iran (joint venture-equity accounted), Sudan and Afghanistan.
Although Iran, Botswana and eSwatini form part of their respective regions geographically and operationally, they
are excluded from their respective regional results because they are equity accounted for by the Group.
Operational review
Operational review
Listed Opcos’ published Q3 2023 results
The published Q3 results of our listed Opcos can be viewed at:
• MTN Nigeria:
https://www.mtn.ng/investors/financial-reporting/?report_cat=quarterly-results
• MTN Ghana:
https://mtn.com.gh/investors/
• MTN Uganda:
https://www.mtn.co.ug/investors/financial-reports/
• MTN Rwanda:
https://www.mtn.co.rw/investors-financial-reporting/
MTN South Africa
Improved growth momentum on higher network availability
MTN SA’s delivered a solid performance against the backdrop of a difficult operating environment,
with total service revenue up by 2.6% YoY. We are particularly pleased with the growth of 4.1% YoY in
Q3, which demonstrated a further sequential improvement in momentum when compared to Q2 (up
2.5%) and Q1 (up 1.3%).
The macroeconomic environment in South Africa remained challenging with the consumer under
pressure. Inflation in South Africa averaged 6.2% in the period (2022: 5.5%), although it showed
encouraging signs of abating with CPI slightly lower at 5.4% in September 2023. The extent of
loadshedding also started to abate in the period, although this was materially higher YoY with 273 days
(2022: 117 days). For Q3 specifically, loadshedding days amounted to 92 compared to 55 days in 2022.
Comprehensive network resilience programme yielding benefits
In the above context, MTN SA’s performance was supported by the investment and significant progress
made to enhance its network resilience. Coupled with the lessening intensity of loadshedding YTD,
our resilience plan has increased availability and enabled the business to provide customers with a
substantially better network experience.
The improved network availability has translated into a substantial rise in customer satisfaction, as
measured by customer feedback obtained through the Net Promoter Score (NPS) measurement.
Solid operating and financial performance
MTN SA’s commitment to enhancing and optimising the customer experience journey, underpinned
by better network performance, supported a 2.6% increase in subscribers to 36.8 million; with net
additions of 59k in Q3 and 260k YTD. Postpaid subscriber grew by 8.3% to 4.1 million (excluding
telemetry) and prepaid customers were flat to prior year, at 27.8 million.
Outgoing voice revenue declined 12.8% YoY. However, performance maintained an improving
trajectory, with a decrease of 10.7% in Q3 showing a slowdown in decline from the decreases of 11.7%
and 16.0% recorded in Q2 and Q1, respectively. In addition to enhanced network availability, the
better performance in voice revenue was also supported by increased Xtratime penetration. Xtratime
penetration rose to 26.2% in Q3 (2022: 25.3%). Overall voice revenue (including incoming voice)
declined by 12.4% YoY.
Data remained the primary catalyst of growth in the business, as mobile data revenue has increased
by 8.3% YoY, accounting for 47.9% of MTN SA’s service revenue YTD. This achievement was made
possible by a 3.4% increase in active data subscribers, totalling 19.5 million, and a 25.5% YoY growth
in network traffic. MTN SA continued to drive data access, affordability and usage with a 13.9%
reduction in the effective data rate.
MTN SA saw further upside in usage trends, with an active prepaid data subscriber consuming an
average of 3.0GB of data a month (up 20.3% YoY); while an active postpaid data subscriber used on
average 15.2GB per month (up 24.3% YoY).
Consumer postpaid service revenue increased by 3.6%, supported by growth in subscribers, the
sustained uplift in data consumption and price-up initiatives implemented in H1. A bouquet of online
propositions, designed to give flexibility to our customers, were launched in Q3 to stimulate growth in
voice traffic and users. MTN SA delivered steady growth in the residential business, with the successful
introduction of new home propositions, including MTN Fibre, coupled with investment into the sales
channel. This has yielded higher growth in customer numbers and revenue.
Consumer prepaid service revenue declined by 3.1% YoY, demonstrating a continued sequential
improvement on a quarterly basis. The decline in Q3 abated to 2.0%, compared to the 2.3% and 5.0%
declines in Q2 and Q1 respectively. This positive momentum was supported by better network
availability and a streamlined focus on bundled offerings as well as simplification of products and
services.
MTN SA’s CVM initiatives continued to gain traction with personalised bundle offerings now available
on eight platforms. CVM bundle penetration rose to 26% up from 25% in Q2, and 23% in Q1.
In the fintech business, MTN SA developed its digital retail application in H1 and officially launched
MoMo 2.0 in September 2023, which has led to a meaningful uplift in ARPU. This focuses on driving
advanced services in the ecosystem, encompassing international remittances and funeral cover
services. The focus on the acceleration of the airtime advance (Xtratime) business is progressing as
planned with the successful onboarding of a new technology partner completed in H1 already yielding
positive results.
The enterprise business continued to achieve double-digit service revenue growth of 11.1%, with an
acceleration in Q3 (up 14.5%). This was largely driven by the ICT business, while the digital mobile
advertising and core mobile businesses continued to benefit from strong data product propositions
as well as distribution channel expansion.
The wholesale business sustained double-digit revenue growth, with an increase of 16.3%, building
further on a strong base. MTN SA’s national roaming revenue was up 33.4% YoY driven by Cell C
revenues as well as the steady scaling of the multi-year national roaming agreement with Telkom. We
are pleased with the successful completion of the planned transition of Cell C traffic on to the MTN
SA network.
MTN SA’s EBITDA was 6.9% lower YoY, including the once-off gain on disposal of SA towers; excluding
this effect, EBITDA declined by 5.7%. The EBITDA margin of 36.6% YTD was 3.6pp lower YoY (3.1pp
lower to 36.4%, excluding the gain on disposal of SA towers). This was impacted by topline pressures,
the revised management fee as well as higher power and other network resilience related costs. MTN
SA continues to execute on its aggressive cost drive to safeguard profitability and cash flows,
underpinned by the expense efficiency programme. The continued expansion in EBITDA margin to
37.1%, excluding the once-off gain on disposal of SA towers, in Q3 (from 36.1% in Q1 23), was
encouraging and substantiates MTN SA’s efforts.
MTN SA deployed capex of R6.6 billion, excluding leases, at an intensity of 17.4%, which enabled the
investment in network resilience and capacity. Including leases, capex was R10.6 billion.
MTN SA remains steadfast in its commitment to ESG priorities, taking substantial strides towards
achieving its net-zero targets by 2040. This commitment has driven substantial investments in
renewable sources, leading to the launch of a comprehensive four-phase green energy programme.
This ongoing programme includes the installation of solar panels and battery backup solutions across
numerous facilities. It also involves the procurement of renewable energy from external sources, as
well as the implementation of combined cooling, heat, and power technology.
Focus on execution to navigate challenging trading outlook
The trading environment in South Africa remains very challenging, which will continue to pose
headwinds to MTN SA’s topline and EBITDA margin development. To mitigate these effects, the
business will continue to enhance its customer experience, expand CVM offers, scale the fintech
business and drive further expense efficiencies. As part of this, we anticipate that MTN SA’s newly
introduced post-paid propositions will help to drive market share gains, complemented by the focus
on accelerating daily recharge activity and driving further Xtratime penetration.
To support these initiatives MTN SA will consolidate the momentum of the network resilience
programme, which is tracking slightly ahead of plan. The business has made the outstanding payment
of R1.9 billion for low-band spectrum acquired in the 2022 auction, which will enable the efficient
deployment of capex going forward.
Overall we are pleased with the steady progress MTN SA is making in improving its service revenue
and EBITDA margin trajectory. We expect this to underpin MTN SA’s attractive cash flow generation
profile over the medium term, guided by our disciplined capital allocation framework.
MTN Nigeria
MTN Nigeria’s Q3 results – published on 27 October 2023 – were delivered in a challenging environment
characterised by ongoing volatility in global macroeconomics and geopolitics.
Service revenue grew by 21.4%*, in line with medium-term guidance of ‘at least 20%’. This was
attributable to double-digit growth in voice, data and digital services. The mobile subscriber base
increased to 77.6 million, adding 2.0 million subscribers YTD.
Voice revenue grew by 11.0%*, underpinned by a larger base and increased usage of our revamped
voice propositions due to enhanced customer value management (CVM) initiatives.
Data revenue rose by 35.9%* on increased coverage and usage. As a consequence of investments in
the network to expand coverage and capacity, data traffic grew by 46.3% YoY, with 4G making up
83.7% of overall traffic, up 5.2pp YoY. Data usage (GB per user) grew by 29.1% to 8.1GB, and the
number of smartphones on our network increased by 7.6%, bringing smartphone penetration to
53.4%, from 53.1% in Q2.
Our 5G network now covers 7.5% of the population, and we are on track to reach our 10% target by
year-end.
Fintech revenue grew by 6.3%*, supported by the increased adoption of our core fintech services
(wallet and MoMo agent business). The active user base declined by 20.4% YoY to 8.9 million due to the
cash shortages experienced in Q1 which affected activity levels in OTC transactions. Active MoMo
PSB wallets closed Q3 at approximately 3.6 million, representing additions of 500 000 since H1.
Digital revenue grew by 54.5%*, due to the increased adoption of digital products supported by
expanded digital offerings and the growth of the active base, which was up by 67% to 16.1 million.
ayoba continued to gain traction, with monthly active users increasing by approximately 2.9 million
YTD to 8.0 million at the end of Q3.
Service revenue from the enterprise business rose by 44.8%*, led by the mobile and fixed connectivity
services and underpinned by onboarding new customers across all segments.
MTN Nigeria recorded EBITDA growth of 17.6%*, while the EBITDA margin declined by 1.9pp* to
51.7%*. This was the result of higher CPI adjustments on lease rental costs, rising energy costs and
naira depreciation.
Southern and East Africa (SEA) region
The SEA region delivered service revenue growth of 18.1%* YoY, supported by sustained growth in
data (+25.0%*), fintech (+22.2%*) and voice revenue (+12.6%*) as well as an increase in subscriber
numbers by 7.8%*YoY to 38.7 million. The blended inflation in SEA averaged 11.0% YTD, compared to
10.2% in 2022.
MTN Uganda published its Q3 results on 2 November 2023 and reported service revenue growth of
15.3%* YoY, underpinned by strong momentum in data (+21.9%*) and fintech (+18.1%*) and solid
voice growth (+10.4%*). The subscriber base grew by 13.9% to 19.0 million.
Voice revenue benefited from strong subscriber growth and enhanced CVM initiatives. Data revenue
was supported by YoY increases of 23.0% and 21.4% in active data users and data usage respectively.
Fintech revenue growth was driven by customer adoption to our MoMo Pay platform, supported by
merchant growth of 222% to 290 000.
MTN Uganda’s EBITDA increased by 15.5%*. The EBITDA margin contracted by 0.2pp* to 50.5%* due
to high network operating costs as a result of CPI-pegged contracts.
MTN Rwanda, which published Q3 results on 3 November 2023, reported 5.6% YoY growth in the
subscriber base to 7.2 million despite a difficult operating environment. Service revenue grew by
13.7%*, which was largely attributable to double-digit top-line growth in the fintech (+31.5%*), data
(+22.6%*) and enterprise (+15.5%*) businesses.
Data revenue sustained its positive momentum, driven by 8.4% growth in active data users as well as
an 9.4% YoY increase in data usage. Fintech revenue maintained strong YoY growth driven by a 11.5%
growth in active MoMo subscribers as well as increased engagement and usage of advanced and
basic services.
MTN Rwanda reported EBITDA growth of 4.7%* and an EBITDA margin of 44.9%* (down 3.9pp* YoY).
This was mainly the result of a higher cost of sales due to the higher uptake of 4G services from the
wholesale service provider in the first eight months of 2023 before MTN Rwanda launched its own 4G
network.
Overall, the SEA portfolio reported a 1.6pp* decline in the blended EBITDA margin to 44.3%* due to
increased network and commissions and distribution costs.
West and Central Africa (WECA) region
The WECA region delivered double-digit service revenue growth of 14.9%* largely driven by data and
fintech revenues, delivering growth of 24.3%* and 31.3%* respectively. Active data subscribers
increased by 4.8% to 34.1 million and active MoMo users increased by 7.1% to 33.7 million.
The average blended inflation for the region rose to 18.9% over the period from 10.9% in 2022.
Excluding Ghana, WECA inflation was stable at 5.0% for the period.
MTN Ghana, which published Q3 results on 31 October 2023, delivered service revenue growth of
36.6%* supported by growth in voice (+14.6%*), data (+48.2%*) and fintech (49.9%*). The impact of the
National Communications Authority’s (NCA) directive on SIM disconnections continued to impact the
subscriber base, resulting in a 9.3% YoY decrease to 25.8 million. MTN Ghana continued to invest in
the expansion of its network capacity and coverage, and increased 4G coverage to 99.3%.
EBITDA increased by 31.9%* YoY, however the margin declined by 2.1pp* to 56.0%*, due to the impact
of elevated inflation on costs.
MTN Côte d’Ivoire’s service revenue increased by 2.6%*, largely underpinned by 13.7%* growth in
data revenue, despite the impact of new regulation allowing the extension of unused data volume to
roll-over to the following month. Fintech revenue is up 1.5%* and was affected by lower MAU but
delivered encouraging growth in the overall ecosystem with transaction volumes up by 25.0%.
The regulatory environment remains challenging, exacerbated by increased price-based competition
in the market. Price repair initiatives in the sector remain the key focus, with engagements underway
with relevant authorities in the country.
The EBITDA margin declined by 3.5pp* to 31.3%*, impacted by pricing pressures as well as macro
challenges including local currency devaluation and higher inflation.
MTN Cameroon reported service revenue growth of 10.3%* and maintained leading market share in
a challenging and highly competitive environment. CVM initiatives continued to drive solid growth in
data (+19.0%*) and fintech (+24.4%*) revenue, despite increased pricing competition in the market.
The EBITDA margin for MTN Cameroon improved by 3.1pp* to 37.6%* due to strong topline growth
and expense efficiency.
WECA reported a 16.0%* increase in EBITDA and a blended EBITDA margin of 39.3%*, up by 0.4pp*
Excluding MTN Ghana, the WECA markets reported a 0.6pp* decline in the blended EBITDA margin to
30.1%*.
Middle East and North Africa (MENA) region
The MENA region delivered service revenue growth of 1.6%* YoY under challenging trading conditions.
The total number of subscribers (excluding MTN Irancell) decreased 21.4% to 11.7 million, with active
data subscribers decreasing by 24.5% to 3.7 million.
MTN Sudan increased service revenue by 1.3%* YoY, while the situation in-country remains volatile.
The EBITDA margin declined by 18.6pp* to 32.1%*, impacted by the ongoing conflict and inflationary
pressure on costs. These effects were mitigated through revenue recovery initiatives underpinned by
restoration of the network where it was safe to do so, as well as expense efficiencies.
MENA reported a blended EBITDA margin of 31.9%*, down by 8.8pp*, due to increases in network
costs, commissions and distributions.
MTN Irancell, our equity-accounted JV, delivered service revenue growth of 28.8%*, supported by
increased data usage. Data revenue was impacted by the restrictions on international traffic related
to civil protests, offset by strong growth in voice revenue. The EBITDA margin declined by 2.1pp* to
41.3%* due to higher network maintenance costs and currency devaluation.
The Iran Internet Group continued its strong performance in the nine months to September 2023.
Ride-hailing app Snapp remained the market leader, ranking among the top ride-hailing apps globally
and reaching 4.3 million daily rides compared to 3.4 million rides in 2022. Last-mile delivery service
Snappbox also remained the market leader with revenue up 90% YoY and daily orders increasing by
19% YoY to almost 359k. Food delivery app Snappfood grew revenue by 84% YoY and remained the
largest player in the country.
Scaling our platforms
Building the largest and most valuable fintech platform
Overall fintech revenue sustained its growth trajectory and increased by 22.1%* YoY (Q3 2023: 23.0%*
YoY), with strong growth in advanced services (up 61.8%*) relative to basic services (up 21.4%*). The
contribution of advanced services to total fintech revenue rose to 19.8% (up 4.9pp).
Active MoMo users increased by 0.7% to 63.5 million; largely driven by Ghana, Uganda, Benin,
Cameroon and Rwanda. Agents and merchants grew by 10.8% and 78.8%, to 1.3 million and 1.8 million
respectively; with Nigeria a key driver of merchant additions, particularly in Q3. The development of
our overall fintech ecosystem remained robust with a 33.9% increase in transaction volumes to
12.7 billion transactions, and transaction value up by 57.1%* to US$203.7 billion.
Key fintech markets
MTN Ghana continued its recovery from the impact of the introduction of the e-levy. Fintech revenue
increased by 49.9%* YoY, underpinned by strong growth in advanced services. Active Mobile Money
(MoMo) users increased by 16.3% to 14.4 million.
MTN Uganda’s fintech revenue grew by 18.1%*, with strong growth in basic revenues (P2P and money
transfers) as MoMo adoption continued to scale, especially MoMo Pay. Fintech subscribers increased
by 9.7% to 11.6 million (net additions of 709k in Q3), while merchants increased by 222% to 290k. The
value of transactions increased by 57.7% to USh96.5 trillion (2022: USh61.2 trillion). Advanced service
revenue grew steadily as we introduced new international money transfer corridors in Asia and
Europe to support our remittances portfolio.
In Côte d’Ivoire, the operating environment remained challenging with fintech revenue growing
marginally by 1.5%* YoY. Monthly active MoMo users were down by 22.6% YoY to 5.3 million as a result
of a change in definition of active users. Despite this, transaction volume and value increased by
25.0% and 19.9% YoY, respectively.
In Nigeria, fintech revenue increased by 6.3%* notwithstanding the 20.4% decline in the fintech user
base to 8.9 million due to the effects of the cash shortages in the country and a refocus towards
wallet customers. Efforts to accelerate active wallet users continues to yield results, with a 25.5%
growth in OTC users since Q1 2023.
Key fintech verticals
Our payments and e-commerce ecosystem grew strongly, as we leveraged our consumer and
merchant footprint. The total value of merchant payments made through MoMo rose by 49.8%* YoY to
US$11.8 billion.
In BankTech, we facilitated a total loan value of US$2.0 billion, up 169.6%*, as we capitalised on our
scaled mobile wallet business, rich data and customer footprint. Uganda and Ghana were the key
drivers of the performance with strong growth in loan users.
The total value of remittances grew by 63.5%* YoY to US$2.4 billion. This was driven by growth in the
number of active corridors as well as focused marketing awareness efforts and improved customer
experience. Outbound corridors grew by 59% to 124 and inbound corridors rose to 492 (up 15%). In
Q3, international remittance services were launched in South Africa and Nigeria, providing a low-cost
service that enables our customers to share in the benefits of formal financial services.
Our InsurTech platform aYo, within our strategic alliance, reported 12.7%* YoY growth in revenue. This
was driven by our higher-average-revenue-per-policy focus and new revenue streams. In South
Africa, we rolled out an embedded product called MTN Free4U Funeral Khava, and additional features
are planned for release in Q4.
Ayoba
In Q3, our super app platform ayoba grew its user base by 84% YoY to 30.9 million MAU. Nigeria, one
of our largest markets for ayoba with MAU of 8.0 million, grew users 58% YoY.
In the quarter, ‘Explore’ mode was launched in all our territories which allows users to browse and
explore content and features without requiring registration. Ayoba continues with early-monetisation
and proof-of-concept projects, including display ads and premium sales.
In terms of our broader strategy and growth ambitions, we have built an MAU base of 8.6 million in
countries where MTN does not have GSM operations, demonstrating the scope of the messaging
platform to scale as an OTT.
Bayobab (MTN GlobalConnect)
Bayobab delivered external revenue growth of 5.4% YoY to US$265.6 million.
The Communication Platform segment reported external revenue growth of 4.7% YoY, underpinned by
a five-year messaging deal with a global hyper scaler, expansion of Application-to-Person SMS reach
list through strategic partnerships and a resilient performance from international voice despite a
negative global trend. Bayobab partnered with key global mobile networks and launched over
6 300 roaming services during the year extending the footprint worldwide while making international
roaming more affordable for MTN subscribers across Africa.
The Fixed Connectivity segment increased its external revenue by 11.4% YoY, supported by new fixed
connectivity infrastructure deals valued at US$10.0 million. We rolled out approximately 7,000 km of
new fibre in 2023, bringing our total proprietary fibre inventory to 112 000km as at 30 September 2023.
Updates on significant regulatory and legal considerations
MTN Nigeria to appeal VAT Tax assessment
As previously reported in a SENS announcement on 30 October 2023, the Tax Appeal Tribunal (TAT)
in Nigeria upheld a principal VAT liability of US$47.8 million. This pertains to a VAT assessment for the
periods covering 2007 and 2010-2017, as issued by the Federal Inland Revenue Service (FIRS) to
MTN Nigeria. Having reviewed this outcome and considering input from tax and legal consultants,
MTN Nigeria has resolved to appeal the decision of the TAT.
Update on Anti-terrorism Act (ATA) litigation
On 28 September 2023, a judge in the US District Court for the Eastern District of New York denied in
part a motion by MTN to dismiss the ATA claims against the Company in Zobay v. MTN. This means
that the case will proceed to the next phases, which include discovery (the exchange of information
in the parties’ possession), summary judgment motions (requests that the court grant judgment on
the law, without a trial, because there are no factual disputes for a jury to resolve), and, if necessary,
a trial.
The court, however, did uphold the motion to dismiss the case against MTN Dubai on the grounds that
the plaintiffs did not attribute any specific conduct to MTN Dubai. Accordingly, MTN Dubai is no longer
a party to the proceedings.
The court’s dismissal order does not mean that MTN has lost the case, nor does it suggest that MTN
violated the law or otherwise engaged in wrongdoing. Under US law and procedures, MTN (and the
other defendants in the case) could not challenge the factual allegations made against the company
at the motion-to-dismiss phase. In the next phases of the litigation, MTN will have an opportunity to
produce and solicit evidence to disprove plaintiffs’ allegations.
In terms of next potential steps after discovery concludes, the parties will have an opportunity to
submit summary judgment motions (requests that the court award judgment as a matter of law based
on the evidence produced during discovery). Should the parties decline to move for summary
judgment, or if the court denies the motions, then the case will proceed.
The court has granted MTN permission to file full arguments in support of an application for leave to
appeal. If the court grants MTN’s application for leave to appeal then the case will proceed to the
Court of Appeal.
MTN has deep sympathy for those who have been injured or lost loved ones as result of the tragic
conflicts in Iraq and Afghanistan. MTN firmly believes that the plaintiffs have sued the wrong
defendants in the wrong court, based on insufficient allegations.
Impact of revision of unrealised forex losses in MTN Nigeria
Included within MTN Nigeria’s Q3 results release, was an update relating to the revision of unrealised
forex losses. In order to manage the forex paucity prevalent in the Nigerian market, MTN Nigeria
utilises trade lines to fund the establishment of confirmed irrevocable letters of credit for its largely
US dollar-denominated network capex investments that sustain revenue growth. MTN Nigeria holds
naira-denominated cash cover with banks, to support these facilities.
The significant depreciation of the naira against the US dollar, following liberalisation in June 2023,
therefore, gave rise to unrealised forex losses relating to these trade obligations. Further analysis and
review, conducted after the release of H1 2023 results, determined that in measuring forex losses for
H1 2023, MTN Nigeria incorrectly remeasured all its trade lines after offsetting the naira-denominated
cash cover that was provided to the banks.
Measuring the forex losses, to correctly exclude the naira-denominated cash cover, resulted in the
recognition of additional unrealised forex losses on outstanding matured trade obligations at
30 September 2023 of N87.5 billion. Similarly, MTN Nigeria’s net finance costs for H1 2023 would
have increased by N73.9 billion to approximately N295.1 billion.
In terms of the key impacts for MTN Group, the abovementioned revision would have had the effect
of reducing the earnings per share (EPS) reported in H1 2023 by 65 cents to 446 cents and headline
earnings per share (HEPS) by 66 cents to 476 cents. It would have further reduced each of fully
diluted EPS and fully diluted HEPS by 64 cents to 437 cents and 467 cents, respectively.
Outlook
The operating environment in the period ahead is expected to remain challenging, with inflation
remaining elevated, and currencies under pressure. While these effects are anticipated to continue in
Q4, we are positioned well to weather the uncertainty through strong operational execution in line
with our Ambition 2025 strategy.
We will continue to implement our previously reported measures to curb the effects of inflation and
other macro shocks on our business. These are focused on our commercial, supply chain, network
and financial resilience initiatives. We remain constructively engaged with our stakeholders, including
relevant authorities, to support these priorities – including securing tariff increases in key markets –
and resolve the matters in our regulatory environment.
South Africa
The pressure on the prepaid market in South Africa is anticipated to remain in Q4, while base effects
are expected to impact growth in the wholesale segment. In this context, MTN SA will focus on
consolidating the gains driven by its network resilience plan as well as ongoing implementation of its
commercial initiatives, price optimisation and CVM to enhance customer engagement. Post the period
end, MTN SA made the outstanding payment of R1.9 billion for low-band spectrum acquired in 2022.
MTN SA is well positioned to continue its trajectory of steady top-line growth and EBITDA margin
improvement which support an improving cash flow generation and return profile.
Nigeria
Exchange rate movements, VAT on leases and inflationary pressures are expected to impact MTN
Nigeria’s FY2023 margins to be within the range of 47-49%, with service revenue in line with guidance.
As previously announced by MTN Nigeria, we will provide an update to the market on its medium-term
guidance in Q1 2024.
The business will continue to invest efficiently to further expand network coverage, boosted by the
recent acquisition of additional spectrum, to sustain strong data growth and improving earnings and
cash flow generation. Efficiency initiatives related to cost of sales and operating expenses will be the
key focus of the ongoing expense efficiency programme in Nigeria.
Post the end of Q3, MTN Nigeria has optimised its bundle mix within data and introduced new plans
that should benefit effective pricing going forward. The business also remains engaged in ongoing
discussions with authorities on tariff revisions. These initiatives are essential for industry sustainability
and headroom required for future capital investment. With regards to fintech, the structures are being
put in place to accelerate the scaling of MoMo PSB with a focus on wallet adoption and expanding the
merchant ecosystem.
The investment case for Nigeria remains intact, underpinned by the structural demand for data over
the medium-term. The financial framework that underpins this investment case remains driven by
service revenue growing above inflation, underpinned by tariff increases and ongoing price
optimisation initiatives, and operating leverage supporting EBITDA margin expansion. MTN Nigeria
will continue to deploy capital judiciously to maintain its leading network position and aims to deliver
capex intensity within the 15-18% range.
Ghana
As disclosed in MTN Ghana’s Q3 release, the International Accounting Standard (IAS 29) classifies
hyper-inflation economies, among other factors, as countries whose cumulative inflation rate over
three years is approaching, or exceeds, 100%. As Ghana is forecast to pass that threshold for 2023
and 2024, MTN Ghana is actively engaging the key institutions responsible for administering IAS 29
and will update the market on any developments in due course.
Notwithstanding the challenging macro backdrop in the country, MTN Ghana is focused on preserving
liquidity, strengthening the balance sheet and exploring cost mitigating initiatives enabled by the
expense efficiency programme. The business will continue to deploy prudent commercial initiatives to
sustain growth and meet its medium-term guidance.
Further strengthening our financial resilience
In supporting our commercial initiatives aimed at gaining market share and optimising prices to drive
topline growth, we are pleased to have delivered on our FY2023 target of R1.5 billion in expense
efficiencies. We are committed to realising further gains over the medium term with a target of
R7-8 billion in expense efficiencies targeted over three years from FY2024.
Our consolidated and Holdco leverage metrics remain well-managed, which is a key focus of our
disciplined capital allocation framework. In particular, we are on course with our plans to improve the
currency mix of our debt in line with our strategy.
Driving our strategic priorities
We continue to focus on building out our fintech ecosystem, which is critical to accelerating our
platform strategy – a key pillar of Ambition 2025. Concluding on the agreements with Mastercard for
a strategic minority equity investment into the Group Fintech structure is a focus in Q4 2023.
Importantly the commercial agreements signed with Mastercard in August 2023, underscores our
approach to partnering with key players to accelerate the growth of our fintech business.
The processes to exit select markets within the portfolio remains on track. The process to exit
Afghanistan is in the regulatory approval stages and remains on track to be finalised by year-end.
Discussions are also ongoing regarding the potential orderly exit of three of our smaller operations in
West Africa – MTN Guinea-Bissau, MTN Guinea-Conakry and MTN Liberia – and we will continue to
update our stakeholders, as appropriate, on material developments in this regard
Medium-term guidance
We are on track to deploy capex broadly in line with our FY2023 guidance of R40.1 billion, based on
current currency assumptions, with an anticipated capex intensity within our medium-term target
range of 15-18%.
We are focused on delivering on our medium-term guidance and executing on our strategic objectives.
The Group’s board continues to anticipate paying a minimum ordinary dividend for FY2023 of 330cps.
Q3 2023 trading update teleconference
MTN will be hosting a teleconference on Tuesday, 7 November 2023 where we will be unpacking the
Group’s trading update for the nine months ended 30 September 2023. To participate, please register
here: https://www.corpcam.com/MTN07112023.
7 November 2023
Fairland
Lead sponsor
J.P. Morgan Equities (SA) Proprietary Limited
Joint sponsor
Tamela Holdings Proprietary Limited
MTN Group Limited
Quarterly update for the period ended 30 September 2023
Abbreviations
Business Group: Consist of internet service providers in Namibia, Kenya and Botswana
CPI: Consumer Price Index
CVM: Customer value management
GB: Gigabyte
GSM: Global system for mobile communication
Holdco leverage: Holdco net debt (including MTN GC)/SA EBITDA + cash upstreaming
MB: Megabyte
NPS: Net Promoter Score
OTC: Over-the-counter
OTT: Over-the-top
P2P: Peer-to-peer
PB: Petabyte
PSB: Payment service bank
SIM: Subscriber Identity/Identification Module
Towerco: Tower companies
MTN Group Limited
Quarterly update for the period ended 30 September 2023
SUBSCRIBERS
(‘000)
Country 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23
South Africa 34 509 35 346 35 878 36 538 35 924 36 739 36 798
Postpaid 7 526 7 808 7 971 8 277 8 460 8 641 8 997
Prepaid 26 982 27 537 27 908 28 261 27 464 28 098 27 801
Nigeria 70 185 74 156 74 099 75 635 76 751 77 122 77 645
SEA 34 769 34 831 35 897 36 499 37 210 37 708 38 715
Uganda 15 920 16 255 16 701 17 170 17 769 18 080 19 017
Rwanda 6 468 6 585 6 792 6 816 6 919 6 977 7 170
Zambia 7 297 6 812 7 117 7 112 7 031 7 085 6 950
South Sudan 2 198 2 309 2 387 2 484 2 540 2 565 2 580
Botswana (joint venture) 1 831 1 831 1 834 1 836 1 862 1 908 1 936
eSwatini (joint venture) 1 055 1 039 1 067 1 081 1 089 1 092 1 062
WECA 70 202 70 423 72 033 72 619 72 133 72 737 71 304
Ghana 27 081 27 759 28 499 28 603 27 447 27 302 25 840
Cameroon 10 288 10 607 10 596 10 681 10 817 11 069 11 051
Côte d’Ivoire 15 346 15 488 16 173 16 356 16 641 16 699 16 981
Benin 7 051 7 104 7 277 7 565 7 843 8 116 7 780
Guinea-Conakry 4 546 3 427 3 338 3 189 3 179 3 297 3 281
Congo-Brazzaville 3 204 3 288 3 336 3 308 3 278 3 376 3 507
Liberia 1 875 1 928 1 975 2 047 2 056 2 061 2 106
Guinea-Bissau 811 821 838 870 871 816 758
MENA 66 541 66 864 66 992 67 821 68 615 67 353 65 636
Iran (joint venture)^ 51 353 51 814 52 114 52 747 53 268 53 191 53 945
Sudan 9 215 9 109 8 839 9 042 9 313 8 183 5 778
Afghanistan 5 973 5 941 6 040 6 033 6 034 5 979 5 913
Total subscribers 276 206 281 620 284 900 289 112 290 633 291 657 290 097
^ Includes Wimax
MTN Group Limited
Quarterly update for the period ended 30 September 2023
ARPU
(Local currency)
Country 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23
South Africa 93.26 93.79 91.84 94.20 88.65 90.04 89.25
Postpaid 133.46 132.63 129.86 128.30 125.57 124.92 122.37
Postpaid (excluding
telemetry) 267.75 265.89 260.97 260.90 258.83 260.43 259.25
Prepaid 70.35 70.56 68.93 71.31 64.67 65.63 64.78
Nigeria 2 080.55 2 094.90 2 158.60 2 352.80 2 319.20 2 404.80 2 497.80
SEA
Uganda 10 841.00 11 027.00 11 280.00 11 537.00 11 504.00 11 273.00 11 640.00
Rwanda 2 474.87 2 603.60 2 756.86 2 656.00 2 676.06 2 790.22 2 970.67
Zambia 31.59 35.74 38.92 38.73 37.26 40.53 44.22
South Sudan 2 514.13 2 421.96 2 414.51 3 221.95 3 395.93 3 486.93 3 929.99
Botswana
(joint venture) 65.00 67.00 68.79 70.00 73.87 68.63 68.00
eSwatini (joint venture) 108.78 111.02 111.79 112.45 103.09 102.00 105.76
WECA
Ghana 29.08 28.04 27.86 32.05 33.16 38.04 41.85
Cameroon 2 209.00 2 209.00 2 221.61 2 346.39 2 286.73 2 360.42 2 393.59
Côte d’Ivoire 1 797.27 1 789.24 1 753.89 1 745.25 1 587.74 1 582.43 1 500.85
Benin 2 974.19 2 998.52 3 113.17 2 921.05 2 927.70 2 794.35 2 772.66
Guinea-Conakry 17 382.42 18 181.79 22 337.09 21 181.23 21 418.38 18 811.47 17 835.57
Congo-Brazzaville 3 158.30 2 985.23 3 210.28 3 204.97 3 123.89 3 241.63 3 318.65
Liberia 3.67 3.89 3.91 4.07 3.91 4.00 3.88
Guinea-Bissau 1 011.21 1 100.04 995.12 1 024.87 925.94 1 003.80 870.55
MENA
Iran (joint venture) 379 010.89 432 089.91 477 165.10 406 324.57 485 376.07 536 406.00 586 336.00
Sudan 802.86 1 070.64 1 353.30 1 673.01 1 866.96 1 351.98 1 046.99
Afghanistan 156.86 165.66 169.08 164.48 162.33 165.78 171.39
MTN Group Limited
Quarterly update for the period ended 30 September 2023
ARPU
(US dollar)
Country 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23
South Africa 6.06 6.01 5.41 5.34 5.00 4.79 4.82
Nigeria 4.99 5.01 5.04 5.28 5.03 4.69 3.24
SEA
Uganda 3.06 2.97 2.94 2.94 3.09 3.03 3.15
Rwanda 2.40 2.53 2.64 2.49 2.44 2.45 2.49
Zambia 1.78 2.07 2.40 2.31 1.91 2.15 2.27
South Sudan 5.82 5.33 3.94 5.07 4.48 3.78 3.92
Botswana (joint venture) 5.74 5.51 5.41 5.49 5.63 5.03 5.11
eSwatini (joint venture) 7.07 7.11 6.58 6.38 5.82 5.43 5.71
WECA
Ghana 4.27 3.54 2.95 2.40 2.69 3.24 3.61
Cameroon 4.00 3.60 3.45 3.63 3.75 3.90 3.96
Côte d’Ivoire 3.07 2.91 2.71 2.70 2.60 2.61 2.48
Benin 5.09 4.88 4.80 4.52 4.80 4.62 4.59
Guinea-Conakry 1.94 2.09 2.59 2.47 2.51 2.21 2.10
Congo-Brazzaville 5.40 4.86 4.95 4.95 5.12 5.36 5.49
Liberia 3.67 3.89 3.91 4.07 3.91 4.00 3.88
Guinea-Bissau 1.73 1.79 1.54 1.58 1.52 1.66 1.44
MENA
Iran (joint venture) 1.55 1.75 1.81 1.47 1.62 1.41 1.56
Sudan 1.67 1.88 2.36 2.89 3.16 2.32 1.84
Afghanistan 1.63 1.89 1.90 1.86 1.83 1.91 2.14
MTN Group Limited
Quarterly update for the period ended 30 September 2023
FINTECH KPIs SUMMARY
9M
9M Constant
Reported currency
1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 % change % change
Transactions (Tx)
Tx volume (bn) 2.9 3.1 3.5 3.9 4.1 4.2 4.4 33.9 33.9
Value of tx (US$bn) 59.9 56.4 50.4 54.6 65.7 69.5 68.5 22.2 57.1
Wallet
Active MoMo users (m) 58.7 60.7 63.0 69.1 61.7 60.5 63.5 0.7 0.7
Active MoMo agents (m) 1.05 1.09 1.16 1.27 1.33 1.28 1.29 10.8 10.8
Payments and e-commerce
Active merchants 0.77 0.95 1.03 1.46 1.56 1.54 1.84 78.8 78.8
GMV (US$bn) 4.3 3.6 2.9 3.0 3.7 3.9 4.3 9.4 49.8
Banktech
Loan value (US$m) 280.4 341.7 416.5 377.9 336.9 668.0 1 019.1 94.9 169.6
Remittance
Total value (US$m) 573.9 540.1 536.4 568.2 550.4 931.9 935.7 46.5 63.5
Insurtech
Active aYo policies (m) 4.3 4.4 4.0 4.3 4.2 4.5 4.3 6.9 6.9
Registered aYo policies (m) 17.4 17.9 18.0 20.5 21.3 22.1 22.8 26.7 26.7
AVERAGE EXCHANGE RATES
ZAR:LC
strengthening/
YTD YTD (weakening)
ZAR: Local currency 3Q 23 3Q 22 %
Nigerian naira 29.95 26.34 13.7
Iranian rial 19 083.30 15 722.58 21.4
Ghanaian cedi 0.64 0.50 28.0
Cameroonian franc 32.94 38.53 (14.5)
Ugandan shilling 202.33 229.91 (12.0)
South Sudanese pound 47.83 30.54 56.6
Sudanese pound 34.07 33.81 0.8
LC:US$
strengthening/
YTD YTD (weakening)
US$: Local currency 3Q 23 3Q 22 %
South African rand 18.31 15.98 (14.6)
Nigerian naira 547.64 421.43 (29.9)
Iranian rial 350 050.89 252 408.83 (38.7)
Ghanaian cedi 11.84 7.88 (50.3)
MTN Group Limited
Quarterly update for the period ended 30 September 2023
REVENUE
Rm
9M
9M Constant
Reported currency
Country 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 % change % change
South Africa 12 243 12 536 12 480 13 381 12 624 12 793 12 664 2.2 2.2
Nigeria 17 351 17 880 20 054 21 975 21 829 21 984 14 768 6.0 21.8
SEA 4 416 4 498 5 013 5 415 5 345 5 743 6 003 22.7 18.2
Uganda 2 341 2 357 2 605 2 823 2 991 3 209 3 429 31.8 16.0
Rwanda 771 824 966 966 955 1 036 1 033 18.1 13.7
Zambia 689 745 938 944 763 923 955 11.3 10.1
South Sudan 585 579 492 669 623 562 572 6.1 66.2
Business Group 30 (7) 12 13 13 13 14 14.3 8.1
WECA 12 603 11 715 12 023 11 938 12 708 14 515 14 877 15.8 14.8
Ghana 5 335 4 553 4 418 3 725 4 187 5 240 5 600 5.0 36.7
Cameroon 1 864 1 827 1 918 2 118 2 219 2 470 2 521 19.5 2.5
Côte d’Ivoire 2 137 2 131 2 209 2 441 2 475 2 690 2 575 28.5 10.3
Benin 1 650 1 624 1 695 1 799 1 953 2 100 2 158 25.0 7.2
Guinea-Conakry 420 365 447 436 427 409 392 (0.3) (15.3)
Congo-Brazzaville 812 786 876 911 938 1 049 1 099 24.7 7.0
Liberia 312 359 395 441 436 475 462 28.8 12.2
Guinea-Bissau 73 70 65 67 73 82 70 8.2 (7.4)
MENA 1 177 1 367 1 677 1 991 2 168 1 325 1 348 14.7 1.4
Sudan 716 834 1 093 1 389 1 576 669 631 8.8 1.2
Afghanistan 461 533 584 602 592 656 717 24.5 1.8
Joint ventures
Iran 1 865 2 181 2 451 2 066 2 353 2 162 2 381 6.1 29.0
Botswana 283 236 294 285 287 299 286 7.3 2.5
eSwatini 110 113 114 117 112 110 113 (0.5) (0.5)
Equity-accounting
exclusion (2 258) (2 530) (2 859) (2 468) (2 752) (2 571) (2 780)
Head offices,
GlobalConnect and
eliminations 375 506 903 1 002 746 972 993
Total 48 165 48 502 52 150 55 702 55 420 57 332 50 653 9.8 13.7
Hyperinflation (58) 882 1 359 301 121 330 255
Total including
hyperinflation 48 107 49 384 53 509 56 003 55 541 57 662 50 908 8.7 13.7
MTN Group Limited
Quarterly update for the period ended 30 September 2023
SERVICE REVENUE
Rm
9M
9M Constant
Reported currency
Country 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 % change % change
South Africa 9 974 10 071 10 147 10 656 10 108 10 323 10 562 2.6 2.6
Nigeria 17 308 17 840 20 006 21 869 21 744 21 839 14 672 5.6 21.4
SEA 4 369 4 450 4 929 5 354 5 287 5 657 5 916 22.6 18.1
Uganda 2 330 2 339 2 574 2 793 2 959 3 157 3 377 31.1 15.3
Rwanda 758 818 956 955 945 1 024 1 020 18.0 13.7
Zambia 668 722 897 925 747 902 933 12.9 11.5
South Sudan 583 578 490 668 623 561 572 6.4 66.6
Business Group 30 (7) 12 13 13 13 14 14.3 8.1
WECA 12 555 11 665 11 978 11 877 12 669 14 462 14 820 15.9 14.9
Ghana 5 320 4 539 4 406 3 704 4 173 5 221 5 574 4.9 36.6
Cameroon 1 858 1 818 1 910 2 113 2 212 2 463 2 509 19.6 2.6
Côte d’Ivoire 2 127 2 121 2 199 2 425 2 468 2 679 2 566 28.6 10.3
Benin 1 644 1 617 1 692 1 794 1 951 2 096 2 156 25.2 7.4
Guinea-Conakry 415 361 441 432 423 404 388 (0.2) (15.1)
Congo-Brazzaville 809 783 874 906 934 1 045 1 094 24.6 7.0
Liberia 310 356 393 437 435 474 463 29.6 12.9
Guinea-Bissau 72 70 63 66 73 80 70 8.8 (7.1)
MENA 1 172 1 361 1 670 1 982 2 158 1 322 1 346 14.8 1.6
Sudan 713 830 1 088 1 382 1 569 668 631 9.0 1.3
Afghanistan 459 531 582 600 589 654 715 24.6 1.9
Joint ventures
Iran 1 813 2 143 2 405 2 020 2 288 2 124 2 327 5.9 28.8
Botswana 280 233 290 282 284 296 285 7.7 2.8
eSwatini 106 108 110 113 106 105 108 (1.8) (1.8)
Equity accounting
exclusion (2 199) (2 484) (2 805) (2 415) (2 678) (2 525) (2 720)
Head offices,
GlobalConnect and
eliminations 378 502 905 1 004 744 974 990
Total 45 755 45 890 49 635 52 742 52 710 54 577 48 306 10.1 14.2
Hyperinflation (58) 879 1 352 298 121 327 254
Total including
hyperinflation 45 697 46 769 50 987 53 040 52 831 54 904 48 560 9.0 14.2
MTN Group Limited
Quarterly update for the period ended 30 September 2023
EBITDA MARGIN
Constant
1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 currency
Country % % % % % % % %
Group 46.4 44.1# 45.4Ø 40.1* 43.7^ 43.6** 41.1^^ 43.2
South Africa 39.9 39.5 39.0 35.7 36.1 36.1 37.1 36.4
Nigeria 54.6 52.6 53.6 52.1 53.3 52.9 47.8 51.7
#
Excludes gain on disposal of SA towers (R261 million), impairment of Afghanistan PPE and intangibles (R435 million), and IFRS 2 charge from localisation
in Ghana (R85 million).
Ø
Excludes impairment of Afghanistan PPE and intangibles (R97 million).
* Excludes gain on disposal of SA towers (R112 million) and impairment of Afghanistan PPE and intangibles (R221 million).
^ Excludes gain on disposal of SA towers (R16 million), impairment of Afghanistan PPE and intangibles (R181 million).
** Excludes gain on disposal of SA towers (R37 million), impairment of Afghanistan PPE and intangibles (R204 million), and impairment loss on Sudan
assets due to war (R207 million).
^^ Excludes gain on disposal of SA towers (R13 million), impairment of Afghanistan PPE, and intangibles (R297 million).
CAPITAL EXPENDITURE
Rm
Estimated
1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 2023
IFRS 16 10 699* 17 822* 10 705* 17 568* 14 806 18 958 10 157 60 630
IAS 17 7 048 10 030 6 759 14 403 6 375 10 857 8 934 40 068
* 2022 IFRS 16 capex has been restated to reflect contract modification in existing lease agreements for RAN (Radio Access Network) sharing agreements
in MTN SA.
Date: 07-11-2023 07:05:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (‘JSE’).
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
