Tag: Investors
MTN Group’s commitment to shared value in Africa extends beyond providing essential connectivity. In 2023, our total tax contribution to governments across all markets increased by more than 12% to R61.7 billion. This figure encompasses the direct corporate taxes we pay, indirect taxes, operating licence fees, payroll taxes, property rates, dividend taxes and withholding taxes.
“Our total tax contribution is equivalent to the cost of building more than 500 high-quality schools,” notes MTN Group Chief Financial Officer Tsholo Molefe, adding that governments across our markets could use our total tax contribution (TTC) to invest in infrastructure, education, healthcare and a wide range of other public services.
“Our commitment to paying our fair share of taxes supports the positive relationships we have with governments and communities; it also promotes stability and predictability in the business environment,” said Molefe, adding: “This not only attracts foreign investment but also creates new job opportunities, further stimulating economic growth across the continent.”
To maintain transparency, MTN releases an annual Tax Report as part of its suite of reports. This year, we mark 30 years of connecting people and driving digital and financial inclusion. We recognise that the business’s growth in this time would not have been possible without the trust and support of our many stakeholders.
“We build public trust through transparency, including open communication about our tax affairs, including via our Tax Report,” Molefe said.
The report details our broader economic contribution across our markets – beyond the corporate taxes we pay. It also unpacks the evolving global tax environment, MTN’s approach to tax, tax governance, our TTC by market, as well as our effective tax rates.
In 2023, our West and Central Africa (WECA#) region accounted for 39% of our independently assured total tax contribution.This was followed by Nigeria, with 31%; our Southern and East Africa (SEA^) region at nearly 14%; and South Africa at almost 11%.
“We are very pleased to play our part in supporting Africa’s progress and encourage stakeholders to explore our Tax Report for a detailed look at our impact beyond the economic activity created through providing essential communications services across 17 African markets.”
For our 2023 Tax Report, please see MTN Group | home (mtn-investor.com)
MTN marks three decades of operations, celebrating a legacy of connecting people, changing lives, and driving economic growth across South Africa and the African continent.
“As we reflect on this significant milestone, we express our sincere gratitude to all our stakeholders, past and present, across multiple jurisdictions, for their support,” said MTN Group President and Chief Executive Officer Ralph Mupita. “We couldn’t have achieved this remarkable success without you.”
Since its inception in 1994, MTN has evolved from a small South African start-up with 20 employees into a global telecommunications leader, employing over 17,500 individuals representing more than 70 nationalities across 18 diverse markets.
In South Africa, MTN’s impact has been profound. The company’s network now reaches 97% of the population, providing a foundation for digital inclusion and economic empowerment. By investing in cutting-edge technologies like 4G and 5G, MTN has ensured that South Africa remains at the forefront of technological advancement. A recent study by KPMG showed that MTN South Africa’s contribution to the country’s GDP is substantial, making it a key player in the national economy.
The evolution of handsets and the proliferation of apps have democratised access to information and essential services, from financial solutions to healthcare, education, and entertainment. This has been a game-changer for individuals and businesses alike.
MTN’s influence extends far beyond South Africa. In 2023, the MTN Group recorded over R220 billion (more than US$11 billion) in revenue, a testament to its market leadership and the growing demand for digital services across Africa. This success has driven the company’s market capitalisation to over R150 billion, solidifying its position as one of the continent’s most valuable companies.
Across Africa, MTN connects millions, empowering them with essential communication tools and access to vital services. More than 149 million people rely on MTN’s network for data access, fuelling a digital transformation that is reshaping industries and societies. Additionally, MTN Mobile Money (MoMo) provides over 65 million individuals with access to financial services, driving financial inclusion and economic empowerment in underserved communities.
MTN’s commitment to socio-economic development is evident everywhere. In 2023, the Group’s total tax contribution to governments across markets was nearly R62 billion (over US$3.3 billion), supporting vital public services and infrastructure development. MTN’s operations also generated some R159 billion in economic value, creating jobs, stimulating economic activity, and fostering digital innovation.
From the outset, the Group has been driven to make a social impact. Launched in 2001, the first MTN Foundation had an annual budget of R22 million. In 2023, MTN spent ten times that – R220 million – in corporate social responsibility across markets, with a special focus on developing digital skills to enable the digital economy.
Furthermore, both MTN Group and MTN South Africa have achieved Level 1 Broad-Based Black Economic Empowerment status, underscoring their commitment to diversity, inclusion, and social transformation.
MTN’s dedication to giving back is embodied in the annual “21 Days of Y’ello Care” initiative, which has been extended to 30 days this year to commemorate the 30th anniversary. Kicking off on 01 June 2024 under the theme “Learn Today, Lead Tomorrow: Education for Rural and Remote Communities,” this initiative mobilises MTN employees across the continent to dedicate their time and resources to enhance educational opportunities. This year, the focus is on bridging the educational divide in rural and remote areas, providing digital learning tools, and supporting educational infrastructure to empower the next generation of leaders within these communities.
MTN’s 30-year journey is a testament to the transformative power of technology and the unwavering spirit of innovation. Looking to the future, MTN remains dedicated to bridging the digital divide, empowering individuals and communities, and driving Africa’s sustainable and inclusive progress through cutting-edge digital solutions.
In the first half of 2023, MTN Group delivered resilient results, advanced our strategy by partnering with Mastercard on the MTN fintech business, and progressed plans to exit Afghanistan. This was achieved in a difficult operating environment marked by elevated inflation, weaker local currencies and regulatory developments across our 19 markets.
“We delivered a resilient performance in H1 23 and made good strategic progress against a tough macro backdrop,” said MTN Group President and CEO Ralph Mupita.
“In South Africa, we were very encouraged by the improved network availability on the back of our power-resilience investment, resulting in a stronger Q2 23 performance than Q1 23,” he said. By end-June, MTN South Africa’s network availability was more than 90% despite severe electricity shortages across the country.
“In Nigeria, we delivered a very strong operational result, having navigated the cash shortages in Q1 23 and increased inflation,” Mupita said. “The policy changes implemented in Nigeria in Q2 23 have short-term negative impacts, but we see these as being very constructive for the investment climate in the medium to longer term.”
MTN Group’s service revenue grew 15% to almost R108 billion in constant-currency terms. This was driven by increases in revenue from data services of 24% and from fintech services of 22%. Revenue from voice services increased 6% in the period.
At the end of June 2023, we had 292 million subscribers with whom we worked to create shared value. This subscriber base – 4% higher than the same period last year – benefited from lower data rates and improved access to broadband services.
To facilitate the digital economy, we increased the number of active data users by more than 7% to nearly 140 million; reported a 19% increase in overall data traffic; and improved data affordability by reducing the average effective rate per megabyte by more than 22%.
We continued to invest in world-class networks and platforms for the people of Africa, committing R17.2 billion in capital expenditure in the first six months of 2023. The Group’s balance sheet remained strong, with all key metrics well within the limits of our loan covenants.
Driven by solid revenue growth and improved efficiencies, adjusted headline earnings per share (HEPS) increased by 25% to 749 cents and adjusted return on equity (ROE) expanded by one percentage point to 24.4%. These were in line with our medium-term guidance.
The MTN Group Fintech business delivered on our rapid expansion plans. The volume of transactions increased by 37% to 8.3 billion in the first half of the year. These were executed by 61 million active MoMo customers.
Following the bespoke process to identify and potentially introduce strategic minority investors into MTN Group Fintech, we executed commercial agreements with Mastercard to support the acceleration and growth of our fintech business’s payments and remittance services.
MTN and Mastercard also signed a memorandum of understanding which provides for a minority investment by Mastercard into Group Fintech based on a total enterprise valuation of about US$5.2 billion for the business on a cash and debt-free basis. Signing of the definitive investment agreements is expected to occur in the very near term as we approach finalisation of customary due diligence. The closing of the investment will be subject to customary closing conditions.
We continued to work to simplify our portfolio. The process for MTN Group to exit Afghanistan in an orderly fashion through the sale of our entire shareholding to Investcom AF, and affiliate company of M1, remains well on track. The transaction received conditional regulatory approval to proceed, pending the submission of relevant documentation to the Afghanistan Regulatory Authority.
Looking ahead, MTN will keep working to create shared value across our markets. “We are focused on the continued execution of our Ambition 2025, which remains relevant in the current macroeconomic volatility and presents attractive scope for growth,” said Mupita.
“As we manage the challenges in our operating environment, as well as the near-term impacts on our top-line and margins, we maintain our medium-term guidance.”
MTN Group has been recognised as having one of South Africa’s finest Investor Relations teams, scooping three awards at the inaugural Intellidex Top Investor Relations SA Survey Awards.
Investment analysts and portfolio managers surveyed for the awards placed MTN Group first in the industrial sector, third among large cap stocks listed on the JSE, as well as third in the overall rankings.
“MTN Group is honoured to have received this recognition, which is evidence of our commitment to transparent communication with our stakeholders, in this case the investment community,” said Group CFO Tsholo Molefe. “We strive to keep the capital markets appraised of our progress as we execute on our Ambition 2025 strategy, which is centred around driving accelerated growth, faster deleveraging, and revealing value within its financial investments and platforms.”
Respondents shared their views on the quality of investor relations among JSE-listed companies and were asked to rank the best and worst five companies among those they cover. They were also asked to rank these companies on a number of factors including the quality of engagement with senior management, annual reports, notes to the financial accounts, presentations, earnings and booklets.
“We are humbled by the recognition and grateful to our investors, analysts and other stakeholders who engage MTN,” said MTN Group Executive for Investor Relations Thato Motlanthe. “This feedback is invaluable in driving our Investor Relations programme and journey of progress. It’s also important to acknowledge the hard work of the Investor Relations team at MTN, the collaboration of the various teams within the Group as well as the guidance and support of Management and the Board. It is all critical in enriching MTN’s Investor Relations effort.”
The introduction of this survey is expected to improve engagement by listed companies with the investment community, with this ultimately encouraging better communication.
MTN Uganda Limited announces that it will proceed today with the listing of its 22.4 billion ordinary shares on the Uganda Securities Exchange (USE), with trading commencing immediately.
The listing has received the requisite approvals from the Capital Markets Authority in Uganda and the USE. It follows the successful completion of the largest initial public offering in Uganda’s history, raising a record UGX535 billion from applications for 2.9 billion shares (including incentive shares).
“We are delighted with the successful completion of the offer. It clearly shows the confidence that Ugandans and other investors have in the company, its brand and its strategic intent,” said MTN Uganda Chairman Mr. Charles Mbire.
“We commend all the regulators for their support in our work to become a USE-listed company and to comply in a timely manner with the listing provisions of the national telecommunications operators’ licence,” he added.
MTN Uganda CEO Wim Vanhelleputte was also in a celebratory mood: “Today marks the conclusion of a remarkable journey which has given over 20 000 Ugandans the opportunity to become owners of MTN Uganda.”
“We are particularly proud of our digital m-IPO collaboration with the USE, an African first. More than 93% of the applications were made via the m-IPO platform, with the majority of these investors new market participants,” he added.
The listing reduces the ownership of MTN Group in MTN Uganda from 96% to 83.05%. It is in line with MTN Group’s strategic priority to create shared value, partly through ensuring broad-based ownership in all operating subsidiaries. This aligns with the Ugandan Communications Commission’s new licensing requirement for broad-based ownership by Ugandans, with a compliance deadline of mid-2022.
“With this listing, MTN Uganda becomes the Ugandan stock with the largest market capitalisation on the USE,” said MTN Group President and CEO Ralph Mupita. “We are very encouraged to have helped facilitate the broadest possible shareholder base in Uganda, with regional participation and in so doing, further developing the equity capital markets in this country.”
MTN Nigeria Communications Plc (MTN Nigeria) is pleased to announce the launch of a nationwide roadshow to engage interested retail investors in the on-going offer by MTN Group for shares in MTN Nigeria. The first event of the roadshow was today in Abuja.
MTN Group Chairman Mcebisi Jonas and MTN Group President and CEO Ralph Mupita attended the roadshow, which is being held on the sidelines of the state visit to the Federal Republic of Nigeria by South African President Cyril Ramaphosa. Both countries are also participating in the 10th Bi-National Commission.
Jonas said the offer to retail investors to buy shares in MTN Nigeria was a milestone: “We are delighted to be here to mark this momentous event and would like to express our thanks to the regulator and MTN Nigeria’s broader stakeholder base for their support over the years. MTN is a pan-African company which works to deepen inclusion and create shared value.”
Mupita said the MTN Group had made a clear strategic decision to build shared value across operations: “The best way we can do that is by enabling broad ownership in our operating companies. This offer is the first phase of that process in Nigeria, as we progressively reduce our shareholding from 78% to 65% over time. I am incredibly proud to be able to be here today, engaging directly with the Nigerian shareholders we hope will join us on the next phase of our journey.”
MTN Nigeria Chairman Ernest Ndukwe said the company’s success over the past 20 years would not have been possible without a supportive operating environment. “This MTN story is also a demonstration of the opportunity that Nigeria represents for investors,” he said.
MTN Nigeria CEO Karl Toriola said the offer had been structured to be available to as many Nigerian investors as possible: “Today’s roadshow in Abuja is the first in a schedule that takes us to every state of the Federation over the next two weeks. It is really important for us to provide Nigerians across the country with the opportunity to engage with us as we build a shareholder base that is nationally representative.”
The offer opened at 8:00am on 1 December 2021 and will close at 5:00pm on 14 December 2021. The minimum subscription is for 20 shares and lots of 20 shares thereafter. The offer includes an incentive in the form of 1 free share for every 20 shares purchased, subject to a maximum of 250 shares per investor. The incentive is open to retail investors who buy and hold the shares allotted to them for at least 12 months after the allotment date.
Investors are able to submit applications through the issuing houses, receiving agents (authorised stockbrokers and Nigerian banks) and online via a unique digital application platform, PrimaryOffer, administered by the Nigerian Exchange Limited.
Further details and a full directory of authorised receiving agents are at www.mtnonline.com/PO.
MTN Group is pleased to announce that the Securities and Exchange Commission (SEC) has approved an offer for sale of up to 575 million ordinary shares in MTN Nigeria, by way of a bookbuild to qualified investors (Institutional Offer) and a fixed price to retail investors (Retail Offer).
The Institutional Offer opens on 23 November 2021 and closes at 15.00 SAST on 26 November 2021, after which a fixed price will be determined for the Retail Offer. The Retail Offer is proposed to open after the Institutional Offer, and an announcement will be published in this regard once clearance is obtained from the SEC.
“MTN Group is pleased with the launch of this public offer. This is the first step in a series of offers over the near to medium-term for MTN Group to sell-down a total of up to 14% shareholding in MTN Nigeria. This should result in greater ownership by Nigerian institutional and retail shareholders, and increased liquidity of the share on the Nigerian Stock Exchange.” said Group President and Chief Executive Officer Ralph Mupita.
MTN Group currently holds 78.8% shareholding in MTN Nigeria.
MTN Group is today pleased to announce a solid set of third quarter operating results, plans for a public offer of shares in MTN Nigeria, progress in finalising a passive infrastructure deal for MTN South Africa as well as in our work to create shared value across our 20 markets, with ESG at the core.
For the quarter to end-September 2021, the Group also reduced debt and holding company leverage, recorded strong financial results in line with medium-term guidance and advanced the delivery of our Ambition 2025 strategy.
“It’s been a busy quarter, and I’m particularly pleased with the sustained operational momentum across our businesses,” said MTN Group President and Chief Executive Officer Ralph Mupita.
“Material progress was made in accelerating the deleveraging of the holding company balance sheet, and our asset realisation programme and portfolio optimisation priorities are progressing well. The process of structurally separating our fintech and fibre assets remains on track.”
He added that the debt reduction led to S&P upgrading MTN’s standalone credit rating to investment grade – a level last achieved five years’ ago.
At period-end, the group subscriber base was 272m.
Driven by continued strong growth momentum in major markets Nigeria, Ghana and South Africa, MTN Group’s service revenue ramped up 19.1% to R125 billion in the first nine months of the year. Data and fintech service revenue increased by 34.5% and 35.0% respectively. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 24.1%, with margins expanding 2.1 percentage points to 45.0% on a constancy-currency basis.
We advanced financial inclusion, reaching 51 million Mobile Money customers in 16 markets, processing almost 20 000 transactions a minute, with the value of transactions up 67.2% year-on-year to US$175.5bn.
As part of our asset realisation programme, the listing of IHS was an important milestone, creating a liquidity platform for the future to deleverage further. Our further localisation in Uganda with the intention to sell 20% of the Group’s holding in MTN Uganda is in progress.
We are also announcing a public offer of just under 3% of shares in MTN Nigeria as part of the statement of intent communicated previously to further localise 14% of the Group’s holding in MTN Nigeria over the medium term. MTN South Africa is making good progress with a sale and leaseback of its towers.
Aligned to our commitment to achieve net zero by 2040, we started working with the Science-Based Targets initiative to reduce our emissions in line with climate science. In joining Business Ambition for 1.5°C, MTN became part of the UN-backed Race to Zero campaign. In recognition of the strides made in governance practices, our MSCI ESG rating was upgraded to ‘A’ from a rating of ‘BBB’.
Looking ahead, Mupita was encouraged that the number of new COVID-19 cases across Africa had started to slow, but said the pandemic continued to impact lives and livelihoods and demand for mobile services: “It highlights the vital importance of telecommunications as people rely on these services for information and to work, learn and entertain from home. We as MTN are well positioned to deliver and will invest in line with our capital allocation framework to capture these opportunities.”
MTN Group is pleased to announce that progress in reducing our holding company debt has been recognised by rating agency S&P Global Ratings, which has upgraded the Group’s standalone credit rating to investment grade.
S&P has revised MTN’s standalone credit profile to bbb- from bb+, citing progress made in deleveraging the balance sheet and on the expectation that MTN will not return to higher levels of leverage. A standalone rating excludes S&P’s view of government influence and sovereign risk.
“We are very encouraged that our work to reduce debt has been recognised, with a move up to investment grade,” says MTN Group Chief Financial Officer Tsholofelo Molefe. “Faster deleveraging of our holding company balance sheet is a critical element of our Ambition 2025, and today’s announcement is another important indicator that we are on track with the delivery of our strategy.”
The last time MTN Group had an investment grade rating was five years ago, in 2016. By reducing debt, MTN has greater financial flexibility to take advantage of the attractive growth opportunities that we have identified. Central to reducing debt is our asset realisation programme which aims to realise proceeds of more than R25 billion by 2025.
In line with our Ambition 2025, our medium-term guidance includes a target to achieve leverage ratio of the holding company of less than 1.5x. At the end of June 2021, MTN’s holding company leverage improved to 1.4x from 2.2x at end-December 2020. This was supported by significant progress in upstreaming cash from our operating companies, including from Nigeria.
On Friday, S&P also affirmed MTN’s BB- long-term issuer credit rating, with a stable outlook.
To access the published SENS, please click here
MTN Group has received recognition on the 2021 Fortune Change the World list. The Change the World List is a global ranking of the top 53 companies that make a measurable progress addressing pressing social problems as part of their business strategy.
“MTN is humbled to be recognised on the Fortune Change the World list. We are committed to changing the world through meaningful contributions to the societies across the markets in which we operate,” says MTN Group President and CEO Ralph Mupita. “Our networks, products, and services are supplied with the intention of closing the digital divide by facilitating digital communications and financial inclusion.”
The publishers of the Change the World list have noted that many of this year’s honourees are battling to reverse the neglect of some societal needs, as magnified by the pandemic. These companies are investing in the long-term health of their businesses by supporting those on the lower stages of the global economic ladder, including distributing COVID-19 vaccines in low- and middle-income nations.
Since the start of the spread of COVID-19, MTN has remained committed to playing a part in the ongoing fight against the pandemic through our global mask wearing awareness campaign #wearitforme and #onemorepushafrica. Heeding the call for vaccinations across the African continent, MTN donated US$25 million to support the African Union’s COVID-19 vaccination programme. The donation to Africa Centres for Disease Control and Prevention (Africa CDC) will help secure up to seven million doses of the COVID-19 vaccine for health workers on the continent.
Also noted during the pandemic, the urgent need to stay connected, saw data traffic soaring by 110% in 2020. MTN was able to address gaps in connectivity by improving the affordability of its services, whilst providing digital and financial solutions to consumers and businesses, and helping to drive digital inclusion to the most vulnerable and marginalised communities on the African continent.
For MTN, better connectivity doesn’t mean less eco-responsibility. MTN works with its partners to make sure we limit our environmental impact and safeguards biodiversity around every cell tower we build. MTN has also set science-based targets of reducing greenhouse gas emissions by 47% by 2030 and achieving net-zero emissions by 2040.
For us, this is about being part of the long-term solution, harnessing the power of partnerships to act swiftly to address the challenges brought on by the pandemic, whilst prioritising our people, customers, and communities, as well as looking after our businesses and the environment. It is for this reason, we continue to believe in the power of collective action to make a meaningful difference, focusing our efforts where needs are greatest.
Read more:
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