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MTN Group Records Commercial Momentum in Financial Report

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Rob Shuter, Group President and CEO, MTN Group
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MTN Group on Wednesday announced an encouraging set of results for the year ended 31 December 2019.

MTN Group Records Commercial Momentum in Financial Report

 

The group also announced the stepping down of  Rob Shuter, group president and CEO at the end of his contract in March 2021.

Commenting on the results, Shuter said: “In 2019, the 25th anniversary of MTN Group, we delivered commercial momentum across our operations as well as great progress in our strategy and strong financial results, despite challenging trading conditions.

“We added 18 million customers to reach a total of 251 million and increased our data users by 17 million to 95 million and our fintech customers by 7 million to 35 million.

“This growth is central to our belief that everyone deserves the benefits of a modern connected life.

“We also saw improvements in customer experience, network quality and market share across the group.

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“On the strategic front, we launched our instant messaging platform Ayoba, which is now live in 12 markets with two million monthly active users.

“We launched MoMo in South Africa and Afghanistan and received our super-agent licence in Nigeria, registering more than 100 000 agents by year-end.

“We also delivered R14 billion of asset realisations within the first 12 months of our programme and MTN Nigeria listed on the Nigeria Stock Exchange.

“We recorded progress on various regulatory issues, including the AGF tax matter in Nigeria. Relationships with stakeholders across our markets improved, and we reported our highest employee sustainable engagement score yet.

“On the financial side, we delivered service revenue growth of 9,8% with an acceleration in the second half.

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“Our EBITDA margin improved and reported headline earnings per share grew by 62%. Our network rollout brought a further 69 million people into 4G coverage whilst reducing capex intensity. Improved cash flows during the year supported stable balance sheet ratios.”

Operating environment, the group said that this outcome was delivered against challenging macroeconomic conditions, particularly in South Africa, with muted economic activity and the rand weakening against the US dollar.

Financial performance

In constant currency terms, group service revenue increased by 9,8%* to R141,8 billion and earnings before interest, tax, depreciation and amortisation (EBITDA) expanded by 13,6% to R53,4 billion. The holding company leverage ratio improved to 2,2x, which is well within the group’s guidance range of 2,0 to 2,5x, and we reduced our capex intensity to 17,5% from 19,3%, indicating greater efficiency in deploying assets. Driven by the strong earnings performance, operating cashflow increased by 18% and the ROE increased from 11,5% in 2018 to 14,3% in 2019 on an IAS17 basis.

The group’s results were supported by double-digit growth in service revenue by both MTN Nigeria and MTN Ghana. The performance of MTN South Africa was impacted by economic pressure, new data usage rules and changes in recognition criteria for roaming revenue from Cell C due to delayed payments under the networking roaming agreement.

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Management succession

MTN announced that the group president and CEO Rob Shuter will be stepping down from his role at the end of his contract in March 2021. The board thanks Rob for the contribution he has made, and continues to make, to MTN. The succession process will be concluded during the year, enabling a seamless handover.

MTN group chief technology and IT officer Charles Molapisi has been appointed to the group executive committee and the fixed contract of the group chief operations officer, Jens Schulte-Bockum, has been extended until 31 March 2022.

Looking ahead, Shuter said: “We are well positioned for growth. Guided by our well-defined BRIGHT strategy, we are building our growth strategy on our digital operator model while optimising efficiencies, capex and cashflow.

“Following data price reductions in South Africa and Nigeria in 2019, we expect price elasticity to improve data revenue growth in 2020, supported by expanded 4G coverage in Nigeria and across the group.

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“We will continue to scale up our fintech and digital services as well as grow our enterprise and wholesale businesses.

“We have maintained our service revenue, EBITDA margin, capex intensity and ROE targets and increased our asset disposal target by a further R25 billion over the medium term. We also now target a holding company leverage ratio at below 2x.

“We will use 2020 to implement our succession process and ensure a seamless handover to the new group president and CEO whilst maintaining our operational execution.

“Inspired to harness the pioneering spirit that has built MTN over the last 25 years, we remain committed to delivering on our strategy in a more agile way in close collaboration with our many partners, with whom we are #GoodTogether.”

 

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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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Fact-Check: Elon Musk’s “Tesla Pi Phone” is Internet Rumor

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Viral rumors about a “Tesla Pi Phone” a  new phone, being developed by Elon Musk,  CEO and largest shareholder of Tesla and SpaceX, are entirely fake.

Fact-Check:  Elon Musk’s "Tesla Pi Phone" is Internet Rumor

AI Generated Tesla Pi Phone and Elon Musk

Instead, the tech giant said on Monday it has filed an application with the US Federal Communications Commission for permission to deploy the constellation by 2028.

It said the system would provide voice, messaging, data and emergency services.

A quick fact-check revealed that Tesla Inc. has never manufactured, developed, or released a smartphone.

Videos and articles claiming a release (often priced between $150 and $800 with solar charging or satellite-only connections) rely on AI-generated concept art and recycled internet hoaxes dating back to 2021.

Musk has only mentioned a phone in hypothetical remarks, stating Tesla would build one only if major app stores completely blocked or censored essential apps like X (formerly Twitter).

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On Monday however, his company said that “Amazon looks forward to delivering on the promise of D2D [direct-to-device] connectivity, including to the millions of people living, travelling and working in places beyond the reach of existing networks today,”

The filing is the first step from Amazon into satellite mobile connections, which has until now been dominated by SpaceX’s Starlink service.

Musk’s group has signed partnerships with existing operators such as T-Mobile US and the UK’s Virgin Media O2 to provide phone services for customers where their conventional networks do not reach.

Starlink operates across more than 150 countries, offering high-speed internet connections through its constellation of satellites.

 

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How and Why Apps Deplete Data – ALTON

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Association of Licensed Telecommunications Operators of Nigeria (ALTON) has attributed rising mobile data consumption to increased use of smartphone applications, cloud services and emerging digital technologies.

How and Why Apps Deplete Data - ALTON

Mr Gbenga Adebayo, chairman, ALTON

Mr Gbenga Adebayo, chairman, ALTON, disclosed this on Tuesday at the Lagos Chamber of Commerce and Industry (LCCI) conference in Lagos.

Adebayo said smartphones had transformed access to digital services, with many applications consuming data continuously, even when users were not actively browsing the internet.

He explained that automatic software updates, cloud backups, application synchronisation, video streaming, social media autoplay and location services significantly increased data consumption.

According to him, internet usage had changed considerably from a decade ago when consumers mainly relied on direct browsing with fewer digital applications running simultaneously.

He said growing adoption of artificial intelligence, cloud computing and other emerging technologies would further increase demand for reliable connectivity and greater network capacity.

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“The evolution of smartphones has fundamentally changed how consumers access digital services, with many applications now consuming data continuously,” Adebayo said.

He stressed that digital literacy had become increasingly important because consumers needed to understand how their devices and applications consumed mobile data.

He advised subscribers to monitor application activity, adjust device settings and use built-in data management tools to better control their data consumption.

Adebayo said greater understanding of digital tools would help dispel misconceptions about data usage and strengthen public confidence in Nigeria’s telecommunications industry.

Responding to allegations that operators deliberately depleted customers’ data, Adebayo dismissed the claims, insisting telecommunications companies had no commercial incentive to engage in such practices.

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He said every megabyte consumed on telecom networks was recorded through internationally standardised billing systems supplied by recognised technology vendors and regulated by authorities.

“Such a practice would be unlawful, unethical, commercially self-defeating and subject to stringent regulatory oversight by the Nigerian Communications Commission,” he said.

Adebayo explained that operators’ billing systems were designed to guarantee accuracy, transparency and verification, while genuine consumer complaints were investigated through established protection channels.

He added that the Nigerian Communications Commission’s complaint resolution mechanisms and technical audits provided consumers with credible avenues for seeking redress over billing concerns.

According to him, trust remains essential to expanding Nigeria’s digital economy because telecommunications infrastructure supported banking, healthcare, education, commerce and government services.

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He said the telecommunications sector had evolved beyond basic communication services into a critical driver of productivity, investment, innovation and national economic growth.

Adebayo noted that emerging technologies, including artificial intelligence, financial technology, smart manufacturing and digital agriculture, depended on resilient telecommunications infrastructure.

He said Nigeria could only maximise these opportunities through sustained collaboration among government, regulators, telecommunications operators and consumers.

Adebayo reaffirmed operators’ commitment to improving customer experience, strengthening network resilience and promoting transparency in telecommunications service delivery.

He urged stakeholders to encourage evidence-based discussions on digital services, stressing that public trust remained indispensable for the sustained growth of Nigeria’s digital economy.

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Galaxy Backbone Soft Launches Government Service Portal to Simplify Access to Public Services

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Galaxy Backbone (GBB), in partnership with the Federal Ministry of Communications, Innovation & Digital Economy (FMCIDE) and the Korea International Cooperation Agency (KOICA), officially conducted the soft launch of the Government Service Portal (GSP), a groundbreaking digital platform designed to transform how citizens, businesses and government institutions interact.

The event, held at the Galaxy Backbone National Shared Services Centre (NSSC) Headquarters in Abuja, brought together senior government officials, development partners, technology stakeholders and members of the media to unveil services.gov.ng—Nigeria’s new one-stop digital gateway for accessing government services.

The Government Service Portal is designed to provide a single, trusted platform through which Nigerians can easily discover, access and interact with digital services offered by Ministries, Departments and Agencies (MDAs). By consolidating government services into one unified portal, the initiative aims to improve accessibility, enhance service delivery and create a more seamless citizen experience.

Speaking at the event, the Managing Director/Chief Executive Officer of Galaxy Backbone. Professor Ibrahim Adeyanju, stated that the launch represents another significant milestone in Nigeria’s digital transformation journey and reflects the Federal Government’s commitment to building a more connected, efficient, transparent and citizen-centred public service.

He emphasized that the Portal is more than a website; it is the foundation of a unified digital gateway that places the needs of citizens and businesses at the centre of government service delivery.

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He further noted that while the event marks the beginning of the Portal’s journey, the soft launch provides an opportunity to onboard pioneer MDAs, gather user feedback, strengthen system integrations and continuously improve the platform ahead of a wider national rollout.

Representing key stakeholder institutions at the launch were the Deputy Director of KOICA Nigeria, Mr. Ki Yun Baik; the Permanent Secretary of the Federal Ministry of Communications, Innovation & Digital Economy, represented by Mr. Joseph Bareiye, Director of e-Government; the Permanent Secretary, State House, represented by Mr. Oguntuyi Olusegun, Head of ICT; and the Executive Director, Digital Exploration and Technical Services, Galaxy Backbone,  Olumbe Akinkugbe.

The Government Service Portal aligns with the Renewed Hope Agenda of President Bola Ahmed Tinubu, GCFR, and supports Nigeria’s broader Digital Public Infrastructure (DPI) agenda by creating a citizen-facing gateway that complements existing investments in digital identity, secure infrastructure, cloud services, cybersecurity and digital government platforms. It can be accessed using the link: services.gov.ng .  The initiative is expected to strengthen public service delivery, increase transparency, improve operational efficiency and foster greater trust between government and citizens.

Galaxy Backbone reaffirmed its commitment to supporting all Ministries, Departments and Agencies in integrating their digital services into the Portal, noting that collaboration across government will be critical to building an inclusive, interoperable and efficient digital ecosystem that benefits every Nigerian.

The Government Service Portal is expected to evolve into Nigeria’s central digital gateway for public services, making government services simpler, faster and more accessible for citizens and businesses alike.

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