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7November 2023
Improved network availability helps MTN South Africa deliver solid growth in Q3
MTN South Africa delivered solid growth in the third quarter of 2023 on the back of improvements in network availability, which enabled the MTN Group subsidiary to provide its 36.8 million subscribers in South Africa with a substantially better network experience.
Supported by investment and significant progress to enhance network resilience, MTN SA’s network availability rose to above 95% at the end of September 2023 from just above 90% three months earlier.
This was despite the business contending with 273 days of loadshedding in the first nine months of the year, compared to 117 days in the same period of 2022. In Q3 there were 92 loadshedding days, compared to 55 days in Q3 2022.
“Power outages in SA continued to be a challenge,” said MTN Group President and CEO Ralph Mupita in the earnings release for the Group, which operates in 19 markets. “However, the significant progress made in our network resilience programme – which is tracking slightly ahead of plan – combined with lower loadshedding in Q3 (compared to H1), supported average network availability of above 95%.”
This in turn underpinned a substantial rise in customer satisfaction, as measured by customer feedback obtained through the Net Promoter Score (NPS) measurement.
In a tough macro, MTN SA’s service revenue grew by 4.1% year-on-year in Q3 to R31 billion, accelerating from growth of 2.5% in Q2 and 1.3% in Q1.
“We are pleased with the further sequential improvement in momentum in Q3, the result of our efforts to provide the best customer experience as well as a network that is second to none,” said MTN SA CEO Charles Molapisi, referring to extensive network site upgrades, which included installing new, more powerful batteries, renewable energy and generators as well as increased site security.
The Opco’s margin on earnings before interest, tax, depreciation and amortisation (EBITDA) also improved quarter on quarter, to 37.2% in Q3 from 36.2% in Q1 2023 as MTN SA continued to execute on its aggressive drive to cut costs and safeguard profitability and cash flows.
In the quarter, MTN SA made the outstanding payment of R1.9 billion for low-band 800MHz spectrum acquired in the 2022 auction.
“This spectrum will enable the efficient deployment in South Africa of capex going forward,” said Molapisi, adding that MTN SA had committed R6.6 billion in capital expenditure in the period under review.
He said to mitigate the effects of economic headwinds, MTN SA would continue to enhance its customer experience, expand its customer value management (CVM) offers, scale the fintech business and drive further expense efficiencies.
Looking ahead, Mupita was encouraged by MTN SA’s momentum: “Overall, MTN SA is tracking well to return service revenue growth and EBITDA margin to medium-term guidance ranges. We expect this to underpin MTN SA’s attractive cash flow generation profile over the medium term, guided by our disciplined capital allocation framework.”
-End-
ISSUED BY:
Leigh-Ann Chetty, Senior Manager: Public Relations, MTN SA
Cell: 083 209 1310
E-mail: Leigh-Ann.Chetty@mtn.com
Mthokozisi Ndlovu, Manager: Communications and Public Relations, MTN SA
Cell: 083 209 2683
E-mail: Mthokozisi.Ndlovu@mtn.com
About the MTN South Africa
Launched in 1994, MTN South Africa is a subsidiary of MTN Group, a leading emerging market operator with a clear vision to lead the delivery of a bold new digital world to our customers. We are inspired by our belief that everyone deserves the benefits of a modern connected life. The MTN Group is listed on the JSE Securities Exchange in South Africa under the share code àMTNá. Our strategy is Ambition 2025: Leading digital solutions for Africaás progress.
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