MTN Group (MTN) Q2 2024 earnings summary

Executive summary

• Celebrated 30 years of operations with strong commercial momentum and strategic progress, particularly in data and fintech, despite macroeconomic headwinds, naira devaluation, and conflict in Sudan.

• Subscriber base reached 289 million, with active data users up 10.5% and MoMo MAU up 9.1% to 66.0 million.

• Advanced fintech services and commercial monetisation accelerated, supporting portfolio optimisation and localisation initiatives.

• Maintained financial flexibility, improved cash upstreaming, and reaffirmed medium-term guidance and FY 2024 dividend target of 330cps.

• Reported financials were impacted by sharp naira devaluation, inflation, and Sudan conflict.

Financial highlights

• Group service revenue grew 12.1% year-over-year in constant currency, but declined 20.8% reported, mainly due to naira devaluation; topline growth excluding Sudan was 13.6%.

• EBITDA before one-offs decreased 0.4% in constant currency to R29.0bn; reported EBITDA margin fell by 4.4pp to 32.0%.

• Adjusted headline earnings per share dropped 50.5% to 373cps; ROE at 20.2%, down 4.2pp.

• Operating free cash flow before spectrum and licences was R9.9bn, down 51.8%.

• Capex (ex-leases) was R13.4bn, down 22.0% YoY; capex intensity at 14.8%.

Outlook and guidance

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

• FY 2024 capex guidance remains R28–33bn; minimum final dividend of 330cps reiterated.

• Focus on prepaid recovery in South Africa, Nigeria five-point plan, cost savings of R7-8bn over three years, and commercial monetisation of fintech and digital platforms.

• Macro and FX headwinds expected to persist, but operational momentum and strategy execution to continue.