• Monday, April 15, 2024
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BusinessDay

MTN Group expects full year profit surging 35% as mobile giant unlocks significant value

MTN’s 5G service promises internet speed up to 300mbps from Aug 24

Africa’s largest mobile operator MTN expects its headline profit in the year to end-December to rise by up to 35%, from a year-earlier period.

Led by CEO Ralph Mupita, MTN has unlocked significant value for its shareholders in its journey to slim down its sprawling portfolio to pay down debt and reduce potential risks.

The mobile operator is in the process of leaving the Middle East to focus on Africa, where it sees growth potential despite social and economic challenges that plague the continent.

MTN has also said it is working on plans to hive off its financial technology business by March, a move analysts say could potentially unlock further value for the group.

MTN and rival Vodacom are diversifying into digital payments, insurance and shopping apps in a bid to tap the unbanked potential in Africa, as data prices become cheaper and popularity voice calls decline.

In a trading update on Friday, the SA telecom company said headline earnings per share (Heps) would rise 25%-35% year on year.

Read also: MTN Share Sale Shows Nigeria Bourse Can Lure Young Crypto Buyers

The Heps include notable donations related to Covid support for the Africa Centres for Disease Control and Prevention, and the Coalition Against Covid-19 task force in Nigeria.

The share price dropped nearly 2% in early trade on the JSE, having risen 153% over the past year.