Following the need to identify and potentially introduce strategic minority investors into MTN Group Fintech, the telecoms company has executed commercial agreements with Mastercard.
MTN Group revealed the plan in its half year 2023 financial report, which THISDAY obtained from its official website on Monday.
The deal is to support the acceleration and growth of MTN’s fintech business payments and remittance services.
According to the statement, MTN and Mastercard have signed a memorandum of understanding which provides for a minority investment by Mastercard into Group Fintech based on a total enterprise valuation of about $5.2 billion for the business on a cash and debt-free basis.
The signing of the definitive investment agreements was expected to occur in the very near term as both companies approach finalization of customary due diligence.
The closing of the investment would be subject to customary closing conditions, according to a financial statement released on Monday by MTN Group.
According to the statement, the MTN Group Fintech business delivered on its rapid expansion plans. The volume of transactions increased by 37 per cent to 8.3 billion in the first half of the year. These were executed by 61 million active MoMo customers.
“MTN Group’s service revenue grew 15 per cent to almost R108 billion in constant-currency terms. This was driven by increases in revenue from data services of 24 per cent and from fintech services of 22 per cent. Revenue from voice services increased six per cent in the period.
“At the end of June 2023, we had 292 million subscribers with whom we worked to create shared value. This subscriber base – four per cent higher than the same period last year – benefited from lower data rates and improved access to broadband services. To facilitate the digital economy, we increased the number of active data users by more than seven per cent to nearly 140 million; reported a 19 per cent increase in overall data traffic; and improved data affordability by reducing the average effective rate per megabyte by more than 22 per cent,” the financial statement revealed.
It added: “We continued to invest in world-class networks and platforms for the people of Africa, committing R17.2 billion in capital expenditure in the first six months of 2023. The Group’s balance sheet remained strong, with all key metrics well within the limits of our loan covenants.
“Driven by solid revenue growth and improved efficiencies, adjusted headline earnings per share (HEPS) increased by 25 per cent to 749 cents and adjusted return on equity (ROE) expanded by one percentage point to 24.4 per cent. These were in line with our medium-term guidance.”
Analysing the financial report, MTN Group President and CEO, Ralph Mupita, said: “We delivered a resilient performance in H1 2023 and made good strategic progress against a tough macro backdrop.”
According to him, “In Nigeria we delivered a very strong operational result, having navigated the cash shortages in Q1 2023 and increased inflation. The policy changes implemented in Nigeria in Q2 2023 have short-term negative impacts, but we see these as being very constructive for the investment climate in the medium to longer term.”
Mupita further said: “In South Africa, we were very encouraged by the improved network availability on the back of our power-resilience investment, resulting in a stronger Q2 23 performance than Q1 2023. By end-June, MTN South Africa’s network availability was more than 90 per cent despite severe electricity shortages across the country.”
Emma Okonji
Follow us on:
Prince William visits South Africa for Earthshot Prize, aiming to spotlight climate innovation and support…
Mahamat Idriss Deby
A Federal High Court in Abuja has ordered the arrest of Dana Air MD Hathiramani…
A High-ranking Equatorial Guinean official is facing a major sex scandal with 400 explicit sex…
Tinubu Orders Immediate Release Of All Minors Arrested In Connection To #EndBadGovernance Protest President Tinubu…
The Court of Appeal has discharged former CJN Walter Onnoghen, overturning his 2019 asset declaration…
View Comments
👇👇👇👇👇👇👇👇Golf 3, 4, 5 N350,000 to N550,000
Toyota Camry big daddy N550,000 to 1.3mill
Toyota Camry tiny light N550,000 to 800k
Land Cruiser jeep 950,000 to 1,300,000
Toyota matrix N750,000 to 900k
Lexus RX 350 ,950,000 to 2million
Lexus RX 330 750,000 to 1.8
Toyota Prado jeep N950,000 to 1.8
Toyota Hiace Bus N950,000 to 1million
Toyota Avalon N650,000 to 1million
Toyota corolla N550,000 to 900k
Mazda 626 N650,000 to 1.2
Peugeot 406 N700,000 to 1million
Peugeot 207 N750,000 to 900
Honda accord E.O.D N750,000 to 3 million
Honda Evil Spirit N7500,000 to 1.6
Toyota Avensis N750,000 to 1m
Toyota RAV4 N850,000 to 1.3
Toyota Seinna N850,000 to 2m
Toyota Highlander N900,000 to 1.5 million
Toyota Yaris N550,000 to 1.5 million
Nissan Murano N750,000 to 1 million
Nissan Pathfinder N800,000 to 2
Infiniti FX35 N750,000 to 1million
Infiniti FX45 N850,000 to 8.8 AND MANY OF THE CARS ARE NOT LISTED HEREO7O 4540 6674 }