MTN service revenue up to R194bn

MTN Group, a leading telecoms giant, has experienced a drop in share price despite reporting an increase in annual dividends by 10 per cent, with rising revenue and profits. Tsholo Molefe, the Chief Financial Officer at MTN Group, discussed the company's performance in a challenging macroeconomic environment. The challenges in key markets such as South Africa, Nigeria, and Ghana have impacted the company's operations. In South Africa, the ongoing issue of load shedding has cost the company nearly 700 million rand, affecting revenue and profitability. Despite these challenges, MTN has focused on cost management and delivered solid operational performance results. The company has a strong liquidity position of approximately 60 billion rand. The dividend decision reflects MTN's priorities of investing in growth areas and deleveraging the balance sheet. The market's response to MTN's results may be influenced by uncertainties in the markets it operates in, as well as global macroeconomic challenges. MTN is maintaining its medium-term guidance in key markets, while acknowledging the risks and opportunities they present. In Nigeria and Ghana, the company sees opportunities for growth in data services with strong demand and cost management strategies. Financially, MTN's regions have reported healthy growth, contributing to overall service revenue growth. Despite challenges like high inflation and energy costs, disciplined cost reduction measures have been effective across all regions. Looking ahead, MTN is focused on improving network infrastructure and resilience in South Africa. The company is collaborating with the government and private sector to address electricity challenges and ensure network availability. MTN's partnership with IHS for managing tower sites will play a crucial role in building resilient infrastructure and exploring alternative energy sources for improved network performance.