MTN continues strong growth momentum in Q3

MTN Group, a leading telecommunications company, continues to demonstrate strong growth momentum in the third quarter of the year. The company reported a 19% increase in revenue as it continues to execute its 'Ambition 2025' strategy and sees robust performance in its key markets such as South Africa, Nigeria, and Ghana. Group CEO Ralph Mupita highlighted the investments the company has made in its networks, customer experience, and the increased demand for services during the COVID-19 pandemic as key drivers of this growth. Additionally, the company achieved EBITDA margin expansion across all regions by focusing on expense efficiencies. While the focus is often on larger markets like South Africa and Nigeria, MTN also saw positive results in smaller markets such as Cote d'Ivoire and Cameroon, where service revenue has been growing impressively. Despite challenges in markets like Yemen and Afghanistan, the company remains optimistic about its performance and sees broad-based growth across all regions. Ralph Mupita mentioned that the company's operations in Estonia faced challenges due to a social media shutdown but are now back up and running. Regarding the company's debt reduction strategy and portfolio optimization program, Mupita emphasized the progress made in reducing leverage and optimizing the balance sheet by settling bonds due in 2022 and focusing on transitioning to more local ownership in successful businesses like those in Nigeria and Uganda. The company plans to gradually sell down its stake in these markets to increase local participation and ownership. In terms of strategy, MTN Group is focusing on enterprise solutions alongside its consumer offerings and is working on transitioning its IT and network workloads to the cloud to drive efficiency. The company sees opportunities in 5G, particularly in enterprise solutions, and is open to constructive discussions to address the spectrum shortage in South Africa. MTN remains committed to its pledge to support frontline workers with vaccinations in partnership with the African Union and is actively working to fulfill this commitment. As the company continues to expand and grow, it remains focused on opportunities that align with its African-centric focus and add value to its shareholders. While there may be possibilities to explore new markets in the future, MTN will prioritize opportunities that fit its portfolio and create value for its stakeholders.