MTN boasts that these very positive results were delivered
through “strong strategic execution and sustained commercial momentum across 19
markets.”
“We adapted to the extraordinary circumstances brought about by the COVID-19 pandemic and started shaping the MTN of the future through the execution of Ambition 2025,” said MTN Group President and CEO Ralph Mupita.
Increased Earnings
In constant-currency terms, service revenue grew by 18.3% to
$11.4-billion, earnings before interest, tax, depreciation, and amortisation
(EBITDA) increased by 23.7% to $582.6-Million and the EBITDA margin expanded by
2.2 percentage points to 44.5%. The Board declared a final dividend of 300 cents
per share.
“The performance was underpinned by pleasing growth in our
larger operating companies, operating leverage, and the benefits of our expense
efficiency programme,” said Mupita, adding that headline earnings per share
adjusted for non-operational items increased by 26.6%; return on equity
expanded by 2.6 percentage points to 19.6%; and organic operating cashflow
accelerated by 35.2% to $253.3-Million.
The largest telecom in Africa says that these positive
results were delivered despite a slowdown in subscriber additions related to
industry-wide regulations in Nigeria.
Subscriber Growth
At year-end, MTN Group had a total of 272.4 million
subscribers, up 2.9 million from end-2020. Greater adoption of data and fintech
services resulted in the addition of 11.1 million new data users and 10.4
million new Mobile Money users to reach totals of 122.0 million and 56.8
million respectively.
Increase in Capex spending
To cater for the 53.3% expansion in data traffic and 41.1%
increase in fintech volumes, MTN says it continued to invest in the capacity
and resilience of its networks and platforms, deploying a total Capex of
$2.2-billion in the year.
According to the report, MTN says it deleveraged the balance
sheet, paying $1.4-billion in dollar debt and improving the holding company
leverage to 1.0x from 2.2x. This was
boosted by cash of $1.2-million repatriated from the group’s
operating companies and $271.4-million in proceeds from its asset realisation
programme (ARP) during the 2021 financial year.
The Selling of MTN Nigeria shares and Tower Sales
The company anticipates further net proceeds of $586-million
from the public offer of MTN Nigeria shares and the sale of passive tower
infrastructure, once completed.
Among other highlights of the ARP – which aims to reduce
debt, simplify our portfolio, reduce risk and improve returns – were the New
York Stock Exchange listing of IHS Towers, in which MTN has a 26% stake, the
localisations of a number of its operating companies and the company’s exit
from operations in Yemen and Syria.
Booming Fintech
The company also reports “strong growth in its fintech
business”, which now has 57 million monthly active users and generates 10
billion transactions with a total transaction value of $23- billion within the
2021 calendar.
“We remain focused on providing leading digital solutions
for Africa’s progress and creating shared value for our stakeholders. Our
enhanced medium-term guidance reflects the growth we see across our markets, as
we play our part in driving digital and financial inclusion across Africa,”
concludes Mupita.
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