MTN Group, Africa’s biggest mobile network operator, has posted “robust” financial results for the first quarter (Q1) of 2025.
The Pan-African mobile operator announced its Q1 financial results today, saying it now has 297 million customers in the 16 markets in which it operates.
Among the key highlights of the results, MTN Group service revenue increased by 10.4%, while data revenue increased by 17.9%. The telco notes voice revenue was broadly flat at 0.1% and fintech revenue increased by 17.2%. Fintech transaction volumes increased by 13.9%, to 5.5 billion and transaction value was up by 48.9%, to $95.3 billion.
Active data subscribers went up by 9.1%, to 161.7 million and active Mobile Money (MoMo) monthly active users (MAU) increased by 1.1%, to 62.2 million. Data traffic increased by 30.4%, to 5 677PB.
MTN Group president and CEO Ralph Mupita says: “MTN reported a robust performance for Q1 2025, anchored in the continued strong execution of our strategic and operational priorities, and buoyed by improved macro-economic conditions in key markets.”
Mupita notes the company invested R7.5 billion (ex-leases) of capex in its networks and platforms in support of its commercial initiatives, to sustain the encouraging strong growth in the business.
He points out that blended inflation for the group averaged 14.2% in Q1 (Q1 2024 13.6%), which was broadly stable on a sequential basis versus the 14.5% recorded in Q4 2024.
Currency flux
From a local currency perspective, he says despite fluctuations in the rand against the US dollar during the period, the average rate of R18.64/US$ was largely in line with Q1 2024 (R18.81/US$).
Although the average naira of N1 502/US$ was weaker on a year-on-year basis, compared to Q1 2024 (N1 365/US$), the closing rate of N1 537/US$ at quarter end was stable on a sequential basis versus December 2024, he says.
The Ghana cedi weakened by 21.9% against the US dollar, while the Ugandan shilling was 5.1% stronger in the quarter, Mupita states.
“From a regulatory perspective, we were pleased with the approval of price adjustments for telecom operators in Nigeria, which the business started to implement from mid-February 2025, with the majority of adjustments taking effect in March.
“Post the quarter end, we were also encouraged by the removal of the e-levy tax on MoMo transactions in Ghana – effective 2 April 2025 – which we believe will stimulate faster growth in the ecosystem and deepening of financial inclusion in the country.
“In markets like Uganda and Rwanda, the business performance was impacted by regulatory reductions to mobile termination rates (MTRs),” the CEO notes.
Mupita adds that the company is pleased with the strong momentum in the business, with growth in data traffic of 30.4% (43.3% excluding joint ventures) and a 13.9% increase in fintech transaction volumes in Q1 2025. The total subscriber base expanded by 4.7% to 296.8 million.
The group delivered a 19.8% increase in service revenue, led by an acceleration in MTN Nigeria (up 40.4%) and MTN Ghana (up 39.5%), he explained.
MTN South Africa (SA) continued to navigate competitive challenges, most notably in prepaid, with service revenue up by 2.6%, while MTN Uganda’s service revenue of 13.5% was impacted by MTR reductions.
Mupita says MTN Sudan continues to operate in conflict conditions, but saw a more than four-fold increase in service revenue from a depressed base.
“Data was once again a key driver of group growth, with revenue up by 28.7% in Q1, driven by continued structural demand for data and active data subscriber growth of 9.1% to 161.7 million.
“In our fintech business, MoMo MAU increased by 1.1% to 62.2 million, as we continue to reduce incentives to drive a healthier customer base and increase profitability in markets like South Africa and Nigeria.
“In this regard, we are pleased with the improved quality of our user base, reflected in improved engagement and monetisation. Fintech revenue increased by 25.2% in Q1 2025, reflecting continued strong expansion in advanced services, which grew revenue by 36.5%.”
Group earnings before interest, taxes, depreciation and amortisation (EBITDA) was 33% higher, reflecting a 5.3pp improvement in margin to 44.1% (Q1 2024: 38.8%). Mupita explains that this reflected the strong service revenue growth, improved stability in the macro-economic environment and lower device cost of sales in MTN SA.
“We made meaningful strides with some of our strategic priorities. Within the connectivity business, we entered into agreements to share network infrastructure in Uganda and Nigeria, while ensuring compliance with local regulatory and statutory requirements.
“These sharing agreements target improved network cost-efficiencies, expanded coverage and the provision of enhanced mobile services to millions of customers, particularly those in remote and rural areas.”
Talking satellite
In this regard, Mupita says the company is also strengthening its partnerships with low Earth orbit satellite providers, including Starlink, Eutelsat OneWeb, AST & Science and Lynk, to efficiently expand services to enterprises and communities.
“We were excited to have successfully conducted Africa’s first satellite-to-phone call trial collaboration between MTN SA and Lynk.
“The structural separation of our fintech business continues to progress, where the process is well-advanced to secure shareholder and regulatory approvals in key markets. Completion of these important milestones will enable the operations to satisfy regulatory requirements and the faster growth of the businesses, boosted by strategic partnerships.
“Our group net-debt-to-EBITDA ratio of 0.7x as at 31 March 2025 remained well-contained and comfortably within our loan covenant limit of 2.5x. Our holding company leverage at the period end was 1.5x (December 2024: 1.4x), supported by cash upstreamed from our operating companies in the quarter of R1.9 billion. We sustained a healthy liquidity headroom of R38 billion.”
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