In a trading update released on Monday, the pan-African mobile operator revealed that its group earnings before interest, tax, depreciation, and amortisation (EBITDA) experienced a substantial 33% increase on a constant-currency basis for the quarter ending March 31st.
This performance also translated into a healthy expansion of the group's EBITDA margin, climbing 5.3 percentage points to reach 44.1%. While the specific value of the EBITDA was not disclosed in the initial report, the percentage growth underscores a strong financial performance.
The driving force behind this positive trajectory was a commendable 10.4% overall increase in group service revenue during the quarter. When accounting for currency fluctuations, this growth accelerated to an impressive 19.8%. Notably, MTN's operations in Nigeria and Ghana exhibited exceptional growth, with service revenue soaring by 40.4% and 39.5% respectively. These figures highlight the strong market position and operational efficiency within these key African markets.
Despite navigating a competitive landscape, particularly within the prepaid segment, MTN South Africa also demonstrated resilience, achieving a 2.6% increase in service revenue. This indicates the company's ability to maintain growth even in a challenging domestic environment.
The overall positive results signal a strong start to the financial year for MTN Group, reflecting the benefits of its strategic focus and the improving economic conditions in several of its operating markets.