MTN Group, one of Africa’s largest mobile network operators, reported a 33% increase in core profit for the first quarter, supported by robust service revenue growth, reduced device costs in South Africa, and improved economic stability across its markets.
The group noted that earnings before interest, tax, depreciation and amortisation (EBITDA), on a constant-currency basis, surged in the three months ending March. This performance came with a 5.3 percentage point increase in EBITDA margin, bringing it to 44.1%. While MTN did not disclose the exact EBITDA figure, it highlighted that the growth was largely driven by strong performances in Nigeria and Ghana.
Overall, group service revenue rose by 10.4%, and by 19.8% when adjusted for constant currency. MTN Nigeria led the charge with a 40.4% rise, followed closely by MTN Ghana with a 39.5% increase. However, the South African division continued to face pressure, particularly in the prepaid market, with service revenue climbing a modest 2.6%. The company said customers in South Africa remained “value-seeking and dynamic” amid slow economic growth and intense sector competition.
To address operational challenges, MTN South Africa is considering partnering with rival Vodacom to secure backup energy supplies. The group believes such cooperation could enhance the availability of alternative energy sources, which are vital for maintaining consistent and efficient network services.
This proposed collaboration is made possible under the Department of Trade and Industry’s Energy Users Block Exemption, which permits joint efforts in energy procurement and generation that would otherwise be restricted by competition laws.
Group President and CEO Ralph Mupita also revealed plans to deepen MTN’s partnerships with low-earth orbit (LEO) satellite providers, including Elon Musk’s Starlink, OneWeb from Eutelsat, AST & Science, and Lynk. These alliances aim to bolster enterprise service offerings, though further details were not provided.
In March, MTN’s South African unit, in collaboration with Lynk Global, completed Africa’s first satellite-enabled mobile phone call—marking a potentially transformative development for extending coverage in rural and underserved regions.