Q1 2025 MTN Group Ltd Earnings Call Transcript
Key Points
- MTN Group Ltd (MTNOF) reported a strong Q1 performance with a 19.8% increase in service revenue, driven by significant growth in data (28.7%) and fintech (25.2%).
- The company achieved a notable expansion in its EBITDA margin, which increased by 5.3 percentage points to 44.1% on a constant currency basis.
- MTN Group Ltd (MTNOF) saw a substantial increase in active data subscribers, up 9.1% to 162 million, and data traffic grew by 30.2% year on year.
- The fintech business showed robust growth, with transaction volumes increasing by 13.9% and transaction values by 48.9%, indicating strong demand for digital financial services.
- MTN Group Ltd (MTNOF) maintained a healthy balance sheet and liquidity position, with a consolidated net debt to EBITDA ratio of 0.7 times and a liquidity headroom of 38 billion rand as of March 31, 2025.
- MTN South Africa's service revenue growth was slower than expected at 2.6%, with prepaid performance under pressure due to competitive intensity.
- The company faces challenges in the South African market, particularly in the prepaid segment, where customer behavior remains value-seeking.
- Despite a 19.3% increase in data traffic, MTN South Africa's data revenue growth was only 3.9%, indicating potential pricing or competitive challenges.
- MTN Nigeria, while showing strong revenue growth, is still in negative equity, affecting its ability to declare dividends.
- The company is cautious about geopolitical risks and macroeconomic uncertainties that could impact its markets, particularly in relation to global aid funding and international trade.
Good afternoon everybody and thank you once again for taking the time to join us on this call to discuss the MTN group trading statement, trading update for the first quarter.
Ended March 2025. My name is Tao Matlanthe. I look after investor relations with the group.
And on the call with me this afternoon, I've got Ralph Mita who's our group CEO, as well as Thulu Molefa, our group CFO. We're also joined by MTN South Africa CEO Charles Mulaissi, as well as MTN South Africa CFO Dineo Molefe.
Our trading statement was published this morning on the JSE and is available on the MTN website, and on the investor relations page. So I trust you've had a chance to look at it, as well as the Q1 releases from our listedop cos, those were published over the past couple of weeks, and they presented their respective results calls. So, hopefully you had a chance to listen in.
In terms of today's agenda, it will be the usual sort of running order. Ralph will get us going with a summary of the operational highlights. So we'll follow that up
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