MTN Group posts strong results for 2021

MTN Group posts strong results for 2021
IMAGE: MTN Group President and CEO, Ralph Mupita
  • Service revenue grew by 18.3% to R171.8 billion ($11.4 billion)
  • Subscribers up 2.9 million from end of 2020
  • Fintech business generated 10 billion transactions in 2021

MTN Group, has announced strong financial, operational and sustainability results in 2021 with service revenue growing by 18.3% to R171.8 billion ($11.4 billion).

The company says these were delivered through strong strategic execution and sustained commercial momentum across 19 markets in a year it implemented its refreshed Ambition 2025 strategy.

“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.

MTN’s earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 23.7% to R80.8 billion ($5.4 billion).

“The performance was underpinned by pleasing growth in our larger operating companies, operating leverage and the benefits of our expense efficiency programme,” added Mupita.

At year-end, MTN Group had a total of 272.4 million subscribers, up 2.9 million from end-2020 despite a slowdown in subscriber additions related to industry-wide regulations in Nigeria.

The company added 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, thanks to a huge adoption of data and fintech services.

MTN’s fintech business has generated 10 billion transactions with total transaction value of US$239 billion within the 2021 calendar.

The group’s asset realisation programme (ARP) – which aims to reduce debt, simplify portfolio, reduce risk and improve returns, saw 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 exits from operations in Yemen and Syria, were some of the highlights of 2021.

MTN also connected 23 million more people to broadband and achieved rural broadband coverage of 83% against a target of 95% by 2025.

“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,” concluded Mupita.