MTN Group Limited: Q1 2025 Performance Update

Introduction to MTN Group

MTN Group Limited, a titan in the mobile communications sector, operates across 16 countries in Africa, proudly serving 297 million customers. With the guiding vision of "Leading digital solutions for Africa’s progress," MTN is committed to fostering a digitally connected life for all.

Key Highlights from Q1 2025

Accelerating Operational Momentum

In the first quarter of 2025, MTN showcased remarkable growth with key metrics reflecting a resurgence in operational activities:

• Service revenue skyrocketed by 19.8%, primarily fueled by notable performances in MTN Nigeria and MTN Ghana.
• The fintech sector maintained a strong upward trajectory, comfortably aligning with medium-term forecasts.
• The Group EBITDA margin expanded impressively to 44.1%, an increase of 5.3 percentage points.

This quarter’s accomplishments underline MTN’s unwavering commitment to boosting connectivity and digital solutions throughout Africa.

Detailed Performance Insights

Financial Growth Metrics

• Total group service revenue rose by 10.4%, translating to a 19.8% increase in constant currency.
• Notable subcategories include:
  • Data revenue: Up by 17.9% (an eye-opening 28.7% in constant currency).
  • Voice revenue: Reported a modest dip of 0.1% but has shown 9.8% growth in constant currency.
  • Fintech revenue: Witnessed a remarkable 17.2% rise (equating to 25.2% in constant currency).

The surge in data traffic, up by 30.4%, indicates an ever-growing appetite for digital services.

Subscriber Growth and Engagement

• The subscriber base burgeoned by 4.7% to 296.8 million.
• There was a 9.1% increase in active data subscribers, totaling 161.7 million.
• The Mobile Money (MoMo) platform recorded an uptick in monthly active users, reaching 62.2 million.

This consistent growth underscores MTN’s strategic positioning within the fintech landscape and the burgeoning demand for digital services.

CEO Ralph Mupita’s Commentary

In a statement reflecting on the results, CEO Ralph Mupita remarked on the strength of MTN’s operational execution amid improving macroeconomic conditions in major markets. The investment of R7.5 billion into network infrastructure reinforces MTN’s commitment to sustaining growth and creating value for its stakeholders.

Navigating Economic Challenges

The first quarter highlighted challenges, including:

• Blended inflation averaged 14.2%, slightly up from 13.6% in Q1 2024.
• Fluctuating currencies, including a weaker naira against the dollar, presented additional pressures.

Regulatory Developments

Recent regulatory advancements have positively influenced operations:

• Nigeria’s price adjustments were approved, commencing in mid-February 2025.
• The e-levy tax on MoMo transactions in Ghana was abolished, effective April 2, 2025, expected to spur faster growth in financial inclusion.

These actions represent significant steps forward for MTN’s operational landscape, promoting sustainable growth in their fintech ecosystem.

Strategic Initiatives and Future Outlook

Network Sharing and Connectivity Enhancements

MTN is poised to forge stronger partnerships with LEO satellite providers like Starlink to enhance network coverage and efficiency. This is crucial for extending services to remote communities, reemphasizing MTN’s commitment to deepening digital inclusion.

Fintech Evolution

The ongoing structural separation of MTN’s fintech arm is progressing well, with expectations of solid shareholder and regulatory approvals. The company aims to foster an agile fintech ecosystem focusing on sustainable growth and profitability.

Conclusion

As MTN Group Limited continues to advance its strategic objectives, the landscape of digital connectivity in Africa looks promising. With a solid footing in service revenue growth, enhanced fintech initiatives, and a robust operational framework, MTN is well-positioned to harness emerging opportunities while navigating potential economic and regulatory challenges.

For more detailed insights, you can explore the results of MTN Nigeria here, MTN Ghana here, and MTN Uganda here.

In this era of digital transformation, MTN stands as a formidable leader, driving Africa’s progress towards a connected future.