Mobile network operator MTN achieved a 12.9% increase in group revenue in constant currency terms, with data revenue having increased by 21.3% and financial technology (fintech) revenue by 28.9% for its third quarter to end September 30.

Voice revenue grew by 1% in constant currency terms, and total subscribers increased by 1.6% to 288-million, while its active data subscribers increased by 7.4% to 152.8-million during the period under review.

The data traffic that the operator carries increased by 34.1% to 14 141 petabytes.

Further, MTN increased its Mobile Money monthly active users by 5.7% to 61.5-million

Its fintech transaction volumes increased by 17.4% to 14.9-billion, while the fintech transaction value increased by 27.1% to $229.2-billion.

“In the first nine months of 2024, MTN Group navigated a challenging macro‑environment and regulatory developments to deliver a resilient operating performance,” said MTN group president and CEO Ralph Mupita.

“There was an encouraging deceleration in blended inflation and reduced currency volatility across our markets in the third quarter relative to the first two quarters of the year. Blended inflation across our footprint eased to an average of 13.9%, compared to 17.1% in the same period of 2023,” he said.

During the first nine months of 2024, the group maintained its disciplined approach to capital allocation, focused operational execution and strategic delivery.

“With a continued focus on our strategic priorities, we invested capex of R19.8-billion in our networks and platforms, reflecting capex intensity of 14.7%, compared with our medium‑term target range of 15% to 18%.

“This helped to support the robust data traffic growth of 34.1%, and the increase of 17.4% in fintech transaction volumes that underpin our growth thesis,” said Mupita.

Further, in terms of service revenue growth, MTN South Africa reported a 3.3% rise; MTN Nigeria a 33.3% increase, MTN Ghana reported a 31.9% increase and MTN  Uganda’s service revenue increased by 20.1%.

“Excluding our operation in conflict‑hit Sudan, group service revenue growth was 14%, which aligns with our mid‑teen growth target,” he added.

Overall Group earnings before interest, taxes, depreciation, and amortisation (Ebitda) increased by 3.4%, with a number of macro factors putting upward pressure on its costs.

The factors included elevated inflation, foreign exchange movements and the conflict in Sudan. These pressures were mitigated by savings from the successfully renegotiated tower lease contracts in Nigeria in August 2024.

Demand for fintech services remained strong, and revenue increased, with continued pleasing development of advanced services revenue, which grew by 53.1%.

The Ebitda margin within the fintech business improved year-on-year, to the top end of MTN's targeted range of mid- to high‑30%.

MTN's net‑debt‑to‑Ebitda ratio of 0.8 times at end‑September 2024 remained well within its loan covenant limit of 2.5 times. Holding company leverage of 1.8 times was supported by cash from its operating companies and localisation proceeds.

We maintained a healthy liquidity position, with headroom of R32.1-billion, said Mupita.

Meanwhile, in terms of the outlook, although the macro‑environment is forecast to remain challenging in the near term, MTN is encouraged by the abating trends in inflation in its footprint, as well as reduced volatility in forex movements.

As these factors continue to normalise, it anticipates positive impacts on consumer spending power and our business operations.

Total capex deployment for the 2024 financial year is expected to fall within its guidance of R28-billion to R33-billion, and it expects to maintain capex intensity within its medium‑term target range.

Further, the company's work to achieve expense efficiencies of R7-billion to R8-billion between 2024 and 2026 continues, which is aimed at mitigating the impacts of macro‑volatility on the business.