MTN Group (MTN) Q1 2025 earnings summary

Executive summary

• Service revenue grew 19.8% year-over-year, driven by strong performances in Nigeria and Ghana, and robust fintech expansion.

• Group EBITDA margin expanded to 44.1%, an increase of 5.3 percentage points year-over-year, reflecting operational leverage and improved macro conditions.

• Fintech operations delivered sustained performance, aligning with medium-term guidance, and monthly active users rose to 62.2 million.

• Total subscribers increased 4.7% to 296.8 million, with active data subscribers up 9.1% and MoMo users up 1.1%.

• Strategic progress included network sharing, LEO satellite partnerships, and advancing fintech separation.

Financial highlights

• Group service revenue reached R47.4bn, up 19.8% year-over-year; Nigeria up 40.4%, Ghana up 39.5%, South Africa up 2.6%.

• Group EBITDA before once-off items rose 33.0% to R21.5bn; margin improved to 44.1% from 38.8% in Q1 2024.

• Data revenue up 28.7%, fintech revenue up 25.2%, and transaction value up 48.9% to US$95.3bn.

• Capex (ex-leases) was R7.5bn for Q1; capex intensity at 15.2%.

• Net-debt-to-EBITDA at 0.7x, with liquidity headroom of R38bn.

Outlook and guidance

• Medium-term guidance maintained: Group service revenue growth at least mid-teens, South Africa mid-single-digit, Nigeria at least 20%, and MoMo Fintech high-20% to low-30%.

• MTN Nigeria FY25 guidance: at least mid-40% service revenue growth and EBITDA margin.

• Minimum ordinary dividend of 370cps for FY25.

• Capex guidance for FY 2025 remains R30-35bn (ex-leases); expense efficiency target of R7-8bn by 2026 is on track.

• Focus areas: prepaid recovery in South Africa, leveraging price adjustments in Nigeria, and fintech ecosystem expansion.