MTN CFO talks interim results, supply chain bottlenecks & Telkom takeover bid
Shares of MTN are flying today following the release of its interim results. Africa’s largest telecoms reported a 5.5 per cent jump in subscriber numbers to 281.6 million. Service revenue grew in the double digits, bolstered by higher data and fintech traffic and profit margin perked higher despite rising inflation. Tsholofelo Molefe, Group Chief Financial Officer at MTN Group.
Thu, 11 Aug 2022 11:08:13 GMT
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AI Generated Summary
- Potential Merger with Telkom: Molefe discussed the ongoing cautionary status regarding the Telkom deal, signaling a potential consolidation in the South African market. He emphasized the need for strategic partnerships to enhance services and benefit consumers.
- Growth Strategy: MTN's emphasis on data, fintech, and digital services as key growth areas to drive revenue and improve customer experience. The company's focus on capital expenditure and risk-based approaches to evaluate opportunities in the industry.
- Supply Chain Resilience: Amid global supply chain challenges, MTN has adopted proactive measures to secure devices and support customer demand. The company has seen positive growth in the 3G device space, despite supply chain disruptions.
Shares of MTN are soaring following the release of its interim results, showcasing impressive growth in subscriber numbers and service revenue. The telecom giant reported a 5.5% increase in subscriber numbers, reaching 281.6 million, while service revenue experienced double-digit growth, driven by higher data and fintech traffic. Despite challenges such as rising inflation, MTN managed to boost its profit margins. Tsholofelo Molefe, Group Chief Financial Officer at MTN, joined CNBC Africa to discuss the company's performance and shed light on the potential merger with Telkom.
In the interview, Molefe hinted at the ongoing cautionary status due to regulatory constraints, limiting the information that can be shared about the Telkom deal. However, he emphasized the inevitability of consolidation in the South African market and highlighted the potential benefits for all stakeholders involved. Molefe stressed the importance of enhancing coverage, increasing capacity, and improving service quality to benefit consumers in the long run.
One of the key themes discussed during the interview was MTN's strategic focus on key growth areas such as data, fintech, and digital services. Molefe underscored the importance of capital expenditure and risk-based approaches in exploring new opportunities within the industry. The CFO highlighted the robust process followed by MTN in evaluating potential partnerships and mergers to drive growth in the competitive market.
Key Points:
1. Potential Merger with Telkom: Molefe discussed the ongoing cautionary status regarding the Telkom deal, signaling a potential consolidation in the South African market. He emphasized the need for strategic partnerships to enhance services and benefit consumers.
2. Growth Strategy: MTN's emphasis on data, fintech, and digital services as key growth areas to drive revenue and improve customer experience. The company's focus on capital expenditure and risk-based approaches to evaluate opportunities in the industry.
3. Supply Chain Resilience: Amid global supply chain challenges, MTN has adopted proactive measures to secure devices and support customer demand. The company has seen positive growth in the 3G device space, despite supply chain disruptions.
In conclusion, Molefe expressed optimism about MTN's performance in a challenging economic environment, citing resilient revenue growth in South Africa despite macroeconomic uncertainties. The CFO highlighted the potential for expansion in data, fintech, and digital services as drivers of future growth. With a strategic focus on partnerships and mergers, MTN aims to navigate market dynamics and capitalize on emerging opportunities.