MTN is hopeful that favourable new regulations in two of its biggest markets will bode well for its prospects in this financial year.
“From a regulatory perspective, we were pleased with the approval of price adjustments for telecom operators in Nigeria, which the business started to implement from mid-February 2025, with the majority of adjustments taking effect in March,” CEO Ralph Mupita said, as the group reported first quarter earnings.
“Post the quarter-end, we were also encouraged by the removal of the e-levy tax on MoMo transactions in Ghana — effective April 2 2025 — which we believe will stimulate faster growth in the ecosystem and deepening of financial inclusion in the country,” he said.
Nigeria and Ghana are MTN’s biggest and third-largest markets, respectively.
While celebrating these wins, the mobile operator’s business performance in markets such as Uganda and Rwanda was affected by regulatory reductions to mobile termination rates (MTRs).
This comes as MTN reported a robust first quarter, with earnings rising a third, reflecting strong service revenue growth.
Group earnings before interest, tax, depreciation and amortisation (ebitda) for the quarter to end-March were 33% higher in constant currency at R21.5bn, reflecting a 5.3 percentage point improvement in margin to 44.1%.
MTN Nigeria contributed 28.3% to total ebitda, with MTN SA at 21.5% and Ghana 17.7%.
The group said this reflected the strong service revenue growth, improved stability in the macroeconomic environment and lower device cost of sales in MTN SA.
“MTN reported a robust performance for [the first quarter of] 2025, anchored in the continued strong execution of our strategic and operational priorities, and buoyed by improved macroeconomic conditions in key markets,” said Mupita.
“We invested R7.5bn (ex-leases) of capex in our networks and platforms in support of our commercial initiatives, to sustain the encouraging strong growth in our business,” he said.
Group service revenue was up 19.8% at R47.3bn, underpinned by growth in MTN Nigeria and MTN Ghana.
Data revenue increased 18.9% and fintech revenue was 17.2% higher, while voice revenue was broadly flat.
Total subscribers increased 4.7% to 296.8-million while active data subscribers were up by 9.1% to 161.7-million
Active Mobile Money (MoMo) monthly active users increased 1.1% to 62.2-million.
Fintech transaction volumes increased 13.9% to 5.5-billion, with the value of transactions up by 48.9% to $95.3bn.
Mupita said macroeconomic and regulatory developments in key markets had started to trend positively, though the group was cognisant of the potential disruptions to these trends from evolving geopolitics and trade tension.
“For MTN SA, the focus remains on recovering the prepaid performance along with the business’ profitability and free cash flow profile,” he said.
MTN Nigeria was underpinned by strong operational momentum, which the group expected would accelerate as price adjustments took effect, he said.
“The continued growth of our other markets is also a key priority, led by MTN Ghana and MTN Uganda,” he said.
“We are well on track to meet our three-year target of R7bn-R8bn in expense efficiencies by 2026. Our targeted capex (ex-leases) of R30bn-35bn for [financial year] 2025 as well as our overall medium-term guidance framework remain unchanged,” Mupita said.
Update: May 12 2025
This article has been updated with additional information.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.