MTN’s H1 2023 results show positive growth despite the current economic climate. While largely positive, the media statement acknowledged the group’s advancing plans to exit Afghanistan as well as the short term negative impact of the policy changes in Nigeria.
“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.”
The MTN Group fintech business delivered on its rapid expansion plans with volume of transactions increasing by 37% to 8.3 billion in the first half of the year. These were executed by 61 million active mobile money (MoMo) customers.
Following a process to identify and potentially introduce strategic minority investors into MTN Group Fintech, the group executed commercial agreements with Mastercard to support the acceleration and growth of its 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 $5.2bn for the business on a cash and debt-free basis. Signing of the definitive investment agreements is expected after the due diligence process and deal closure is subject to customary closing conditions.
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