The CEO and 2019 CFO of the Year says MTN has exceeded most of its medium-term targets.
In 2021, MTN adapted to the extraordinary circumstances brought about by the Covid-19 pandemic and executed its Ambition 2025 strategy. And as the need for connectivity grew while people were forced to work from home, MTN stepped up to the challenge.
“In a challenging macro-economic environment across our markets, we experienced what we see as structurally higher demand for data services and accelerating transaction values in our fintech businesses,” explains CEO and 2019 CFO of the Year Award winner, Ralph Mupita.
Because of this, supported by sustained commercial execution and capital allocation disciplines, Ralph explains that MTN exceeded most of its medium-term targets. “During 2021, we deployed R32.7 billion of capex to sustain the growing demand for data services and position the company well for a future driven by 4G and 5G technologies.”
The group reported “solid growth” in the year, with service revenue up by 18.3 percent and EBITDA increasing by 23.7 percent, which Ralph accredits to “pleasing” growth in MTN’s larger operating companies and the benefits of its expense efficiency programme.
Following the success of the group’s fintech business, he adds that the work to structurally separate it from the group is progressing well and now aimed for completion by the end of the year. The structural separation of its fibre business is also underway and is targeted to be completed in 2023.
MTN is also in the process of exiting its Middle East regions, in line with its pan-African strategy, and has successfully exited from Syria and Yemen.
To support this growth and changes, Ralph explains that the group plans to invest in coverage, capacity and the resilience of its networks, as well as scaling of its platforms. “As MTN Group, we remain focused on our vision to provide leading digital solutions for Africa’s progress and creating shared value for our stakeholders. Our enhanced medium-term guidance reflects the growth we see across our markets, as we do our part in driving digital and financial inclusion across Africa.”
