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MTN Reports Solid First Half Financial Results

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MTN Group has announced an encouraging set of results for the six months ended 30 June 2019 in the context of difficult trading conditions across its major markets.

Commenting on the results, Rob Shuter, MTN Group President and CEO, said: “We had a good first half, reporting solid financial results, good commercial momentum and encouraging strategic progress.

“We saw growth of 12% in adjusted headline earnings per share, which is the first time that we have delivered growth in this measure in recent years.

“Our service revenue grew just below 10% and EBITDA just above 10%, both on a constant currency basis.

“Our holding company leverage remains stable at 2.3x, well within our guidance range of 2 to 2.5x. And, as we grew revenue and carefully managed our investment programme, we saw capex intensity drop further, to 16,9%.

 “Commercially, we had strong subscriber growth of 7,7 million in the first six months of the year to reach a total of 240 million subscribers. 

“The number of active data users grew by 3,5 million to 82 million and our 30-day active Mobile Money users grew by 2,4 million to 30 million.

“Our continued focus on the customer experience has seen us record brand NPSˆ leadership across more than 50% of the portfolio, with 12 markets now leading.

“That contributed to MTN being named the most valuable South African brand in the Brand Finance South Africa 50 report and the most admired African brand by Brand Africa 100.

 “During the period we had some landmark events. We successfully completed the listing of MTN Nigeria on the Nigerian Stock Exchange and our e-commerce joint venture Jumia listed on the New York Stock Exchange.

“Within three months of announcing our asset realisation programme, which is targeting at least R15 billion over the next few years, we delivered R2,1 billion in proceeds.

“Our advanced instant messaging platform, Ayoba, is now live in three of our West African markets and has more than 300 000 active monthly users.

“We are very pleased with the formal approval of our super-agent licence in Nigeria, which clears the way for the launch of phase 1 of our Nigeria fintech business while we await a banking licence.”

The company further stated that in South Africa, they contended with a weak macroeconomic environment as well as the introduction of new end-user requirements and the repricing of out-of-bundle data rates.

In Nigeria, economic activity was muted in the time of presidential elections and prior to the formation of the cabinet. In Iran, the rial weakened sharply after the re-imposition of US sanctions.

Speaking on the Financial performance, the group stated that notwithstanding the environment, in constant currency terms, service revenue grew by 9,7% to R67,9 billion and earnings before interest, taxation, depreciation and amortisation (EBITDA) expanded by 10,2% to R31,2 billion.

The holding company net debt to EBITDA ratio remained stable at 2.3x, which is well within the group’s guidance range of 2.0 to 2.5x, and capex intensity dropped further to 16.9%, indicating greater efficiency in deploying assets.

On what the future holds, Shuter said: “MTN is well positioned to grow by leveraging our scale and enhancing our competitive position.

 “In the second half, in South Africa we will focus on the continued turnaround of the enterprise business, the recovery of prepaid and the launch of Mobile Money.

“In Nigeria, we will focus on the further rollout of 4G coverage, the launch of Ayoba and Music Time! as well as accelerating our fintech ambitions by fully leveraging our extensive distribution network to offer a range of transfer and payment services to our GSM customer base.

 “Across the rest of the portfolio we have six focus areas. These are: the continued turnaround of our operations in the West and Central Africa region; the resolution of some of the more complicated regulatory situations; the rollout of MusicTime! and Ayoba across the group; the asset realisation programme; launch of our pan-African MTN 4 Good campaign and delivering on our medium-term targets.”

 

 

 


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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Airtel Reveals Mechanism of Spam Alert Service

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As the revolutionary Airtel Spam AI Alert Service rolls out across Airtel Africa’s 14 operating countries, Airtel Nigeria CEO, Dinesh Balsingh, has elaborated on the unprecedented benefits and operating principles guiding the Spam Alert Service.

Designed to enhance user safety, this pioneering AI-driven product provides real-time defense against spam and fraudulent SMS messages, making it a gamechanger for mobile security across the continent.

The Airtel AI Spam Alert Service, which is engineered to automatically detect and label suspicious SMS messages as “Suspected SPAM” without requiring any user action or additional apps, leverages a robust AI algorithm that analyzes over 250 parameters.

These parameters includee sender behavior, message frequency, message geographical distribution, and unusual activity patterns. Impressively, the service completes this process under just two milliseconds, offering near-instantaneous alerts while maintaining the privacy of user data by not reading message content.

Commenting on the breakthrough service, Dinesh Balsingh, CEO of Airtel Nigeria, stated: “Nigeria is not just a critical market for us—it’s a leader in digital adoption within the continent. Our AI Spam Alert Service reflects our dedication to safeguarding our customers from the growing threat of SMS fraud.

“As the first of its kind in Africa, it addresses a fundamental issue of trust and security, which is paramount to our digital ecosystem. We’re proud to offer this service to Nigerians and extend it across our African footprint.”

Following its successful deployment in Nigeria, the Spam Alert Service has now launched in Tanzania and Kenya and is set to cover Airtel’s entire African operations. The service’s automatic activation for all Airtel customers, across both smartphones and feature phones, ensures maximum reach and accessibility.

Early feedback from subscribers has been overwhelmingly positive, with users praising the AI’s efficiency in flagging potentially harmful messages without interfering with their everyday communication.

By pioneering this AI-based spam detection technology, Airtel Africa demonstrates its commitment to leveraging cutting-edge innovation to resolve critical issues facing its subscribers. The AI Spam Alert Service not only protects users but also sets a new benchmark for mobile security standards in the region.

“Our goal is to build a safer digital environment for our users,” added Balsingh. “This innovation is part of our broader strategy to incorporate advanced technologies that address real challenges while enhancing the overall customer experience.”


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MTN Group Strengthens Nigeria-South Africa Economic Ties Amid Africa’s Transformation

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As Africa stands at the point of a profound transformation, the imperative for greater intra-continental cooperation has never been clearer. The path to shared prosperity depends not on the progress of individual nations but on the collective strength of our commitments.

MTN

Central to this vision is the relationship between South Africa and Nigeria, two of the continent’s largest economies, and the institutions that serve as bridges between them.

It was an honour for MTN Group to host Minister Parks Tau (SA Minister of Trade Industry and Competition) and his delegation at our Headquarters in Johannesburg. At a time when global uncertainties are reshaping trade and technology, Africa must respond not in isolation, but in solidarity.

As MTN, we see it as our duty to serve as an economic diplomatic bridge between Nigeria and South Africa — driving growth, fostering inclusion, and unlocking opportunity for the Africa’s shared prosperity.

MTN’s journey exemplifies what is possible when two great nations collaborate. As Nigeria’s largest South African investor, MTN has long viewed its presence not simply as a commercial venture but as a platform for inclusive development.

Since commencing operations in Nigeria in 2001, we have invested more than US$10 billion in the country’s digital infrastructure.

Today, MTN Nigeria serves over 80 million subscribers, employs thousands directly, and supports hundreds of thousands of livelihoods across its extended value chain.

Yet, while the economic footprint is significant, our greatest source of pride lies in the social and developmental outcomes accompanying this investment, expanded access to connectivity, enhanced financial inclusion, and the empowerment of individuals and enterprises through digital technologies.

Still, the operating environment remains complex. Macroeconomic challenges in Nigeria, including currency depreciation, inflation, and constraints in accessing foreign exchange, have placed pressure on business continuity and investor confidence.

Despite these difficulties, MTN remains firmly committed to its business case and its long-term presence in Nigeria, underpinned by a belief in the country’s enduring potential and strategic importance to the continent.

However, for South Africa and Nigeria to truly unlock their bilateral potential, a number of long-standing issues require resolution. The upcoming South Africa–Nigeria Trade and Investment Summit, to be held in Abuja later this year, presents a unique opportunity to address these concerns.

The Summit serves not merely as a diplomatic engagement, but as a catalyst for policy reform, reciprocal market access, and institutional dialogue. Importantly, it should reinforce the private sector’s role in shaping practical, actionable solutions that support cross-border trade and investment.

The African Continental Free Trade Area (AfCFTA) offers a historic platform to actualise these ambitions. Yet its success will depend as much on infrastructure and digital connectivity as it will on tariff liberalisation or regulatory harmonisation.

As a pan-African operator, MTN is investing heavily in the digital foundations of AfCFTA, facilitating seamless mobile communication, enabling digital payments, and building platforms for cross-border entrepreneurship.

We also believe that integration must extend beyond economic frameworks to include cultural exchange and people-to-people engagement. One such initiative is our MTN Media Innovation Programme, which brings emerging Nigerian media professionals to South Africa for immersive learning.

Through programmes like these, we aim to cultivate not only knowledge and skills, but also enduring bonds between our nations’ future leaders.


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Tariff Hike Leads to Decline in Nigeria’s Internet Users – NCC Report

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Nigeria’s telecommunications sector witnessed a notable decline in internet users following a 50 per cent tariff hike on voice, data, and SMS services implemented in January 2025.

The Nigerian Communications Commission (NCC) made this known in industry statistics on its website.

According to the report, the industry lost approximately one million internet users in February, with the user base shrinking from 142.16 million to 141.25 million.

It said although a slight recovery was observed in March, with the figure rising to 142.05 million, the sector’s data consumption patterns were significantly impacted.

The NCC data showed a 12 per cent decline in monthly data consumption in February, dropping to 893.06 petabytes from January’s record high of one exabyte.

It, however, said a marginal rebound was recorded in March, with data usage increasing by 11.5 per cent to 995.88 petabytes.

Despite this modest recovery, the report said consumption levels remained slightly below the January peak, suggesting that subscribers continued to exhibit caution in their usage habits due to the increased tariffs.

Meanwhile, the telecom industry demonstrated resilience in other areas, with operators adding 3.39 million new telephone users between January and March.

This growth propelled the total active lines from 169.32 million to 172.71 million, subsequently boosting Nigeria’s teledensity from 78.10 per cent to 79.67 per cent during the same period.

In terms of market dynamics, Mobile Network Operators (MNOs) maintained their dominance in the internet market.

MTN Nigeria led with 75.62 million users, followed by Airtel Nigeria with 48.8 million, Globacom with 15.37 million, and 9mobile with 1.75 million.

MTN also retained its market lead in active telephone lines with 90.5 million subscribers, representing a 52.48 per cent market share, while Airtel followed with 58.3 million users (33.78 per cent), Globacom with 20.7 million (12 per cent), and 9mobile with 2.9 million (1.72 per cent).

The latest industry figures underscore the complexities facing Nigeria’s telecom sector as operators navigate economic pressures and evolving consumer behaviours.

On porting activities, the NCC report noted that Nigeria’s fourth mobile network operator, 9mobile, had continued to experience a decline in its subscriber base, with a total of 5809 customers porting out of its network both in February and March.

The report showed that other operators recorded insignificant outgoing porting numbers compared to 9mobile.

It showed that MTN lost 647 customers, Airtel recorded 695 outgoing portings, Globacom recorded 771, while 9mobile lost 5808 in both February and March.

In terms of incoming porting, MTN gained the most customers from other operators, with 4855 subscribers joining its network in February and March, the report revealed.

It stated that Airtel recorded 2084 incoming porting, while Globacom gained 1007 customers in both months.

The NCC added that, meanwhile, 9mobile recorded only three incoming porting for both months.

According to the NCC report on incoming and outgoing porting activities of mobile network operators, a total of 7922 subscribers moved from one network to another in February and March.


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