South African mobile network operator, MTN Group’s service revenue rose 10.4% overall in the first quarter of the year, or by 19.8% in constant currency terms, buoyed by 40.4% growth in MTN Nigeria and 39.5% in MTN Ghana.
A Reuters report says the company also recorded a 33% jump in first-quarter core profit, due to strong service revenue growth, lower device cost of sales in its domestic market, and a more stable economic environment.
The jump in group earnings before interest, tax, depreciation and amortisation on a constant-currency basis in the quarter to end March reflects a 5.3 percentage point rise in margin to 44.1%, MTN said, without giving the value of EBITDA.
Group service revenue rose 10.4% overall in the quarter, or by 19.8% in constant currency terms. That was buoyed by 40.4% growth in MTN Nigeria and 39.5% in MTN Ghana.
MTN South Africa continued to face challenges, especially in the prepaid segment, the company said, with service revenue up 2.6%.
Customers “remained value-seeking and dynamic in the context of constrained economic growth and heightened competition in the sector”, the group said.
Its South Africa unit intends to explore collaboration with rival Vodacom on backup energy, the company said.
“This could result in benefits around the… supply of alternative energy in the sector, which is critical to the efficient and reliable operation of network operators,” MTN added.
Group President and CEO Ralph Mupita said the group is also strengthening its partnerships with low-earth orbit (LEO) satellite providers, including Elon Musk’s Starlink, Franco-British satellite operator Eutelsat’s OneWeb, AST & Science, and Lynk, to expand services to enterprises. He did not elaborate.
