MTN's Q1 core earnings rises 27.9%

Delegates walk past the MTN logo at the Investing in African Mining Indaba 2024 conference in Cape Town, South Africa, on 7 February 2024. Reuters/Esa Alexander

Africa's biggest telecom operator, which has more than 310 million customers in 16 markets across the continent, said its earnings before interest, tax, depreciation and amortisation (Ebitda) for the three months ended 31 March rose to R27.6bn ($1.67bn) in constant currency.

Its Ebitda margin widened by three percentage points to 47.6%.

Group service revenue, excluding the effect of currency fluctuations, grew by 21.1% to 56.8 billion rand, led by strong performances in MTN Nigeria , up 41.7%, MTN Ghana, up 35.7%, MTN Cameroon up 14.4% and MTN Cote d'Ivoire up 18.3%.

Despite the continued competitive pressure on the prepaid market at MTN South Africa, service revenue growth edged up by 0.7%.

MTN said its prepaid recovery strategy remains on track, focusing on improving distribution, refreshing its offerings, tightening credit and competing more actively.

The company said the business is showing early signs of stabilising, with growth in cash recharges offsetting a decline in XtraTime usage, a service that allows prepaid customers to borrow airtime and data bundles from MTN when running low.

Data remained the biggest contributor to overall group service revenue growth, rising 35.4%. Voice revenue grew by 4.7%, while financial services revenue jumped 20%, MTN said.

On energy supply risks, MTN said it is working with its partners to ensure sufficient energy availability to meet its ongoing diesel needs.