MTN Group (MTN) Q3 2024 earnings summary

Executive summary

• Delivered resilient performance in Q3 2024, with strong commercial momentum in core connectivity and fintech, despite challenging macroeconomic and regulatory conditions across 17 African and Middle Eastern markets.

• Subscriber base grew 1.6% year-over-year to 288 million, with active data users up 7.4% to 153 million and MoMo (Mobile Money) users up 5.7% to 61.5 million.

• Advanced strategic priorities, including further localization in Ghana and Uganda, exit from Guinea-Bissau, and extension of the MTN Zakhele Futhi empowerment scheme.

• Maintained balance sheet resilience with effective cash upstreaming and localization proceeds, despite a challenging macro environment.

Financial highlights

• Group service revenue grew 12.9% in constant currency for the nine months, with data revenue up 21.3% and fintech revenue up 28.9%.

• MTN Nigeria achieved 33.3% service revenue growth in constant currency, with data up 52.6% and digital services more than doubling.

• MTN Ghana grew top line by 31.9%, with EBITDA margin at 56.0%.

• MTN South Africa service revenue up 3.3%, with EBITDA margin at 36.3%.

• Group EBITDA margin declined 3.2pp to 37.3% due to inflation, currency depreciation, and Sudan conflict.

Outlook and guidance

• Medium-term guidance maintained, targeting at least mid-teens group service revenue growth and mid-single-digit growth in South Africa.

• Capex for FY 2024 expected at R28–R33 billion (ex-leases), with capex intensity within target range.

• Minimum ordinary dividend of 330cps for FY24 reaffirmed.

• Expense efficiency target of R7–R8 billion between 2024–2026 to mitigate macro volatility.

• Focus on sustaining growth in Ghana, Uganda, and improving performance in Côte d'Ivoire, Rwanda, and Zambia.