Category: Media releases
MTN has noted with disappointment and concern the recent violence between in Kwazulu-Natal, South Africa, which caused the deaths of four people as well as the displacement of hundreds of others and the destruction of property. As MTN we strongly condemn prejudice and xenophobia, more so violence against other human beings.
As a leading pan-African telecommunications company with operations in 21 countries, MTN believes in the potential of an Africa whose nations pursue deeper trade, integration and cooperation. Given our roots and our operational footprint, we also have a strong commitment to human rights and dignity, diversity and inclusion.
We urge all our customers and stakeholders to support and defend the principles of human rights, diversity and inclusion and an integrated collaborative Africa. The MTN Foundation is mobilising in Kwazulu-Natal to offer support to the authorities and victims in their hour of need.
MTN Group has released its integrated and sustainability reports for the period ending 31 December 2018, setting out how the group creates value and highlights the six distinct growth opportunities the company is pursuing across the voice, data, digital, fintech, enterprise and wholesale markets.
The integrated report is MTN’s primary communication to stakeholders and aims to enable them to make an informed assessment of MTN’s performance and prospects. It is the company’s value-creation story. The sustainability report aims to provide a balanced, accurate and accessible overview of MTN’s strategy and performance relating to socio-economic, labour and environmental issues, and ethics and human rights.
As part of efforts to enhance digital inclusion, in 2018, the company started executing its dual-data strategy aimed at enhancing digital inclusion. Other key highlights include the expansion of active data users by 10 million to 79 million. The company highlights the growth in MTN Mobile Money users to 27 million, with services revenues of approximately R8bn as part of its efforts to drive financial inclusion.
In 2019, the company will continue implementing its CHASE framework to accelerate internet adoption by addressing issues related to quality coverage, handset availability, affordability, services and education to bring new opportunities to people previously excluded from the digital world.
MTN will also extend initiatives to make smartphones more accessible and affordable, mainly through the launch of its low-cost 3G smart-feature phone, priced at approximately US$25. MTN also plans to launch Mobile Money in South Africa, Nigeria, Afghanistan and Sudan and launch an advanced instant messaging and communications platform.
“As MTN, we are focused on solutions to enhance digital and financial inclusion and transform societies. We firmly believe that technology and connectivity can provide transformative solutions to some of the world’s complex challenges,” said Rob Shuter, MTN’s group president and CEO.
He added that, “In 2018 we unpacked what is really needed to connect people digitally and partnered with stakeholders who share our belief, that everyone deserves the benefits of a modern connected life.”
Tax contribution
The company also released its 2018 tax report, which shows that MTN’s contribution to tax revenues goes significantly beyond the corporate income taxes paid on its profits. In 2018, MTN’s total tax contribution was R24,1 billion, including but not limited to corporate taxes, indirect taxes, withholding taxes, payroll taxes, operating licence fees and other payments to government authorities.
Commenting on the tax report, MTN Group CFO, Ralph Mupita said, “The 2018 tax report yet again illustrates the significant contribution that the MTN Group makes to fiscal revenues in the various markets in which we operate, and call home.”
He added that, “We have a low tax risk appetite across all our markets and look to ensure that taxes due are paid. We further focus on ensuring that the highest level possible for tax compliance is adhered to across all markets.”
MTN accelerates growth, delivers on dividend, simplifies the group and lifts its medium-term targets
Johannesburg – MTN Group published its financial results for the year ended December 2018 on Thursday, meeting all its medium-term targets, reducing its holding company leverage and accelerating service revenue growth driven by the implementation of its BRIGHT strategy.
It increased its subscriber base by 16 million to 233 million customers across 21 markets in Africa and the Middle East. The number of active data users increased by 10 million to 79 million and the active mobile money subscriber base rose to 27 million. This strong commercial momentum drove a 10,7% constant currency increase in service revenue to R125,4 billion.
“The service revenue growth rate achieved is ahead of both prior year and our guidance and – more importantly – is above the average rate of inflation in our markets, which means we are delivering real growth in service revenue,” said Rob Shuter, MTN’s group president and CEO.
Group Ebitda rose more than 15% and reported headline earnings per share (HEPS) increased to 337 cents from 182 cents in 2017. Adjusting for once-off items HEPS would have been 565 cents per share. The total full year dividend of 500 cents is well covered and a final dividend of 325 cents has been declared.
Optimising the portfolio
MTN has conducted an extensive review of its portfolio to reduce risk, improve returns and simplify MTN. This review covered not only its subsidiary companies but also its associates and its investments in e-commerce investments and tower companies. The group has R40 billion tied up in the value of the e-commerce and tower company investments and has announced that they are not viewed as long-term strategic assets of the group and will be monetised over time.
The group has committed to the portfolio review realising more than R15 billion over the next 3 years excluding any proceeds from its R23 billion position in IHS.
Pursuant to this it announced that it would be disposing of its associate in Botswana, Mascom, for $300 million where its lack of control position and MTN branding meant that the group is not able to execute on its BRIGHT strategy.
Stabilising leverage, managing regulatory challenges
The group stabilised its gearing, bringing the holding company leverage down to 2,3 times at December 2018 from 2,9 times at June 2018 and within the target range of 2,0 to 2,5 times. The group’s overall gearing moderated to 1,3x.
“We have made good progress to improve the holding company leverage bringing it within the medium-term guidance range we set out. Proceeds we receive from the asset realization program will support efforts to further reduce debt and de-lever the holding company balance sheet.” said group CFO Ralph Mupita. “We believe the holding company leverage is appropriate, and we can well manage the debt and deliver on our 500 cents progressive dividend policy in the future.” he added.
The company overcame several regulatory headwinds in 2018, the most material of which was the Central Bank Central Bank of Nigeria dispute on historical dividend repatriations. This was resolved and MTN announced in December 2018 that they had agreed to implement a notional reversal of the 2008 private placement and consequently made a resolution payment of $53 million. The group is committed to further enhancing its risk management and stakeholder management processes.
Enhancing guidance
“We see significant opportunity to grow subscribers and voice revenue as we also execute on the large mobile data opportunity,” said Shuter. “We are also extending our BRIGHT strategy to build MTN into a digital operator with a major focus on the fintech, digital, enterprise and wholesale business areas.”
“Key focus areas for 2019 are the launch of our own music streaming and instant messaging applications and extending MTN mobile money from 14 to 18 countries through launches in South Africa, Nigeria, Afghanistan and Sudan”
Considering the improved performance in 2018 and its growth plans, the group revised its guidance to investors upwards, targeting double-digit growth in service revenue, improved profit margins and capex efficiency and a new target to drive return on equity from 11% to over 20% in the next three to five years.
About the MTN Group
Launched in 1994, the MTN Group is a leading emerging market operator, connecting more than 230 million subscribers in 21 countries in Africa and the Middle East. The MTN Group is listed on the JSE Securities Exchange in South Africa under the share code: “MTN”. MTN is pursuing its BRIGHT strategy with a major focus on growth in its financial services, digital, wholesale and enterprise businesses.
View 2018 Financial Results for the year ended 31 December 2018.
MTN has announced its trading update for the year ended 31 December 2018.
MTN expects to report an almost doubling in earnings with growth in full year headline earnings per share forecast at between 80% and 90%.
MTN further noted that headline earnings per share were negatively impacted by a number of once-off and non-cash items totaling approximately 220 cents.
MTN is encouraged that post the resolution with the Central Bank of Nigeria MTN Nigeria has resumed dividend payments to its shareholders.
“We are encouraged by the progress made and we are looking forward to sharing our full results on the 7 March 2019.” said Rob Shuter, MTN Group President and CEO. – Issued by MTN Group Corporate Affairs
About the MTN Group
Launched in 1994, the MTN Group is a leading emerging market operator, connecting more than 200 million subscribers in 21 countries in Africa and the Middle East. The MTN Group is listed on the JSE Securities Exchange in South Africa under the share code: “MTN”. MTN is pursuing its BRIGHT strategy with a major focus on growth in its data, financial services and digital businesses.
MTN Irancell, an associate company of MTN Group is pleased to announce the appointment of Dr. Bijan Abbasi Arand as its new Chief Executive Officer (CEO).
Dr. Abbasi holds a Post-Doctoral degree in Communication from Tarbiat Modares University where he is currently an assistant professor. He is one of the leading telecommunications experts in Iran and brings decades of experience in both the academic and commercial sectors.
He replaces Mr. Alireza Ghalambor Dezfouli who will take a well-deserved retirement having served as the CEO of MTN Irancell since its inception in 2005. Mr. Dezfouli has played an integral role in building Irancell into a major business serving more than 40 million customers and becoming the largest data operator in Iran.
MTN Group thanks Mr. Dezfouli for his years of service and congratulates Dr Abbasi on his new role.
– Issued by MTN Group Corporate Affairs
About the MTN Group
Launched in 1994, the MTN Group is a leading emerging market operator, connecting subscribers in 21 countries in Africa and the Middle East. The MTN Group is listed on the JSE Securities Exchange in South Africa under the share code: “MTN”. As of 30 September 2018, MTN recorded 225,4 million subscribers across its operations in Afghanistan, Benin, Botswana, Cameroon, Ivory Coast, Ghana, Guinea Bissau, Guinea Republic, Iran, Liberia, Nigeria, Republic of Congo (Congo-Brazzaville), Rwanda, South Africa, Sudan, South Sudan, Eswatini, Syria, Uganda, Yemen and Zambia.
MTN Group’s newly acquired music streaming entity, Simfy Africa, has been given a welcome boost with the appointment of Oyebowale Akideinde as Head of Over the Top (OTT) Music Services. His appointment, effective 1 February 2019, will enhance the company’s digital music streaming services to its customers across Africa and the Middle East.
Oyebowale joins MTN from Boomplay Music where he served as the Regional Director for West Africa. His career spans over 17 years primarily in consumer goods, e-business, financial, media and digital sectors. He has also worked in IT, project management, strategy, product and business development, and marketing.
He holds an MSc in Business Information Systems from the University of Hertfordshire, a BSc in Computer Science from the University of Lagos and a General Music Studies Specialist certificate from Berklee College of Music. Oyebowale has also garnered a number of industry related awards and accolades throughout his career.
Commenting on Oyebowale’s appointment, Rob Shuter, MTN Group President and CEO said, “We are very pleased about Oye’s appointment as he brings passion and knowledge of the rich media industry, this will stand him in good stead to support MTN’s expansion of OTT digital services to our customers.”
About Simfy
MTN acquired Simfy, dubbed as Africa’s leading music-streaming business, in November 2018. It boasts a broad catalogue of music and access to more than 42 million tracks; the entity has also partnered with record labels and content distribution platforms such as Warner Music, Universal Music Group and Content Connect Africa to bring subscribers a wide range of music. Shortly after the acquisition of Simfy, MTN launched MusicTime! in South Africa, a service which offers users premium trending and locally relevant music.
MTN confirms that Wim Vanhelleputte, the CEO of MTN Uganda has been deported from Uganda. MTN has not been notified of the grounds for the deportation and is working hard to establish precise reasons for the deportation.
We are understandably concerned about these developments and are engaging with the authorities to seek understanding that would lead us to resolving this matter.
To ensure business continuity, we have appointed Mr Gordian Kyomukama, currently Chief Technology Officer, as Acting Chief Executive. Our focus continues to be on delivering the best quality products and services to our customers.
MTN Uganda is fully committed to respecting and operating within the laws of the country.
Johannesburg – MTN confirms that three senior managers have been deported from Uganda. MTN Uganda has not been officially notified of the grounds for these arrests and deportations and is trying to establish the precise reasons for the deportations.
We are understandably concerned about these developments and the wellbeing of all our employees.
MTN Uganda is fully committed to respecting and operating within the laws of the country.
Notes to the editor:
On Saturday, 19 January 2019, the MTN Uganda Chief Marketing Officer, Olivier Prentout, was arrested by police at Entebbe airport upon arrival from a business trip abroad.
On the morning of Monday 21 January 2019, the MTN Uganda Head of Sales and Distribution, Annie Bilenge Tabura, was arrested by unidentified security personnel upon arrival at the MTN headquarter offices, in Kololo, Kampala.
Subsequently, both Mr Prentout and Mrs Bilenge have been deported from Uganda to their home countries, France and Rwanda respectively.
On the 22 January 2019, Elza Muzzolini, Head of Mobile Financial Services was also deported from Uganda.
– Issued by MTN Group Regulatory and Corporate Affairs
MTN Group CEO Rob Shuter to speak on investing in digital for inclusive growth in the 4th Industrial Revolution at WEF, Davos 2019
Johannesburg – MTN is participating in the World Economic Forum’s Annual Meetings taking place from 22—25 January 2019 in Davos-Klosters, Switzerland. This highly anticipated yearly gathering of the world’s top leaders from politics, business, civil society and academia, typically recaps major developments on the global landscape and sets the agenda for impactful conversations in all sectors. The WEF Davos 2019 theme is Globalisation 4.0: Shaping a Global Architecture in the Age of the Fourth Industrial Revolution.
Rob Shuter, MTN Group CEO, will contribute to a series of high-level panel topics, including the establishment of a single African market under the Continental Free Trade Area (CFTA) agreement and accelerating investment to support universal access to broadband. In addition, MTN will elaborate on thoughts about how the company is working towards reducing the digital divide and increasing financial inclusion.
With 220 million customers across 21 countries, MTN is one of the largest emerging market telecommunications groups in the world. MTN is widely recognised as a private sector thought leader on how the private sector can provide winnable solutions that will promote low-cost digital services for all and incentivise investment to achieve inclusive growth by exploring alternative business models. A top priority for the company is to provide mobile financial services to 60 million MTN customers by 2020, with a strategic goal of doubling broadband connectivity by 2021, and universal service by 2030.
Mr. Shuter said: “With the youthful population in Africa being born digital, and mobile devices and networks being at the heart of the digital revolution on our continent, the 4th Industrial Revolution gives the continent an opportunity to leverage our assets to leapfrog development and economic growth. We must invest in the future and be prepared. MTN understands that investing in digital does not only make financial sense, it will be the life blood that sustains us all as we move towards the 4th Industrial Revolution.”
WEF Davos 2019 is premised on the need to address global uncertainty, international economic and political tensions. The agenda will cover several topical areas, including economic policies, human capital, industry systems, cybersecurity and institutional reform. South Africa will be represented by a sizeable delegation which will make the strong case for investing in the country as one of the world’s “Hot Emerging Market Economies” by mobilising public-private collaboration for inclusive growth and development.
– Issued by MTN Group Regulatory and Corporate Affairs
As previously communicated, the Central Bank of Nigeria has alleged improper repatriation by MTN Nigeria Communications Limited (“MTN Nigeria”) of US$8,1 billion between 2007 and 2015.
MTN Nigeria has held various engagements in order to find an equitable resolution to the matter. In particular, a series of meetings were held in Lagos with CBN officials during November 2018. At these meetings MTN Nigeria provided additional material documentation which satisfactorily clarified its remittances. The CBN upon review of the additional documentation concluded that MTN Nigeria is no longer required to reverse the historical dividend payments made to MTN Nigeria shareholders. However, the CBN maintains that the proceeds from the preference shares in MTN Nigeria’s private placement remittances of 2008 of circa USD$ 1 billion were irregular having been based on CCIs that only had an approval-in-principle, but not final regulatory approval of CBN.
The CBN instructed MTN Nigeria to implement a notional reversal of the 2008 private placement of shares in MTN Nigeria at a net cost of circa N19.2 billion – equivalent to US$52.6m (the notional reversal amount). This is on the basis that certain certificates of capital importation (CCIs) utilised in the private placement were not properly issued.
MTN Nigeria and the CBN have agreed that they will resolve the matter on the basis that MTN Nigeria will pay the notional reversal amount without admission of liability. In terms of the resolution agreement, the CBN will regularise all the CCIs issued on the investment by shareholders of MTN Nigeria of circa $402,625,419 without regard to any historical disputes relating to those CCIs, thereby bringing to a final resolution all incidental disputes arising from this matter.
MTN Nigeria relied on certain commercial banks to ensure all approvals had been obtained prior to the CCIs being issued and to ensure the CCIs were properly utilised in the private placement. MTN Nigeria will be engaging with the banks in relation to the issues dealt with in the resolution agreement.
Shareholders are advised that the legal process initiated by MTN Nigeria for injunctive relief restraining the AGF from taking further action in respect of its orders for back taxes is continuing. The AGF matter came up for initial mention before the Federal High Court of Nigeria Lagos Judicial Division on 8 November 2018 and has been adjourned to 7 February 2019. MTN Nigeria continues to maintain that its tax matters are up to date and no additional payment, as claimed by the AGF, is due, and consequently no provisions or contingent liabilities are being raised in the accounts of MTN Nigeria for the AGF back taxes claim.
As a result of the above, shareholders are no longer required to exercise caution in dealing with the Company securities.