MTN Group 1st Half Profit Slipped; Agrees Investment With Mastercard
By Joe Hoppe
MTN Group’s pretax profit fell on higher costs and depreciation, amortisation and impairments, and it has signed a memorandum of understanding for investment with Mastercard.
The South Africa-based telecommunications group said Monday it generated a pretax profit of 18.31 billion South African Rand ($966.2 million) compared with ZAR18.58 billion a year earlier.
Basic earnings per share–one of the company’s preferred metrics–rose to 511 South African cents a share from 445 cents. Headline EPS–which strips out exceptional and other one-off items–rose to 542 cents from 506 cents.
Revenue rose to ZAR113.20 billion from ZAR97.49 billion. Within this, data revenue grew 16.5% while fintech revenue grew 21.4% on a constant currency basis.
The board hasn’t declared a dividend for the half year but said it expects to pay a final declaration of ZAR3.3 a share for the year.
MTN said the business is managing challenges in its operating environment and the near term hits to its top-line and margins, and backed its medium-term guidance. It has previously guided for at least mid-teens group service revenue growth in the medium-term.
The company also said it has signed a memorandum of understanding with Mastercard, providing for a minority investment in MTN’s fintech business based on a total enterprise valuation of around $5.2 billion. Signing of definitive investment agreements is expected in the near term.
Write to Joe Hoppe at email@example.com
(END) Dow Jones Newswires
August 14, 2023 03:36 ET (07:36 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.