Telecom
MTN Returns to Profitability in 2017 Annual Report
MTN’s earnings swung back to profit for the year ended 31 December 2017, although the strong rand dented revenue growth and new subscriber definitions saw active customer numbers tumble.
The telco giant today reported positive headline earnings per share (HEPS) of 182c compared to a full-year headline loss per share of 77c at the end of 2016.
“We are back in the black, with an attributable profit for the full year of R4.4 billion, as you know we had a loss of R2.6 billion in 2016,” group CEO Rob Shuter said in a conference call.
The group’s revenue for the 12 months increased by 6.8% on a constant currency basis, but was actually down by 10.2%, at R132.8 billion, when currency changes were included. Group service revenue was also hit by the strong rand during the period, decreasing by 10.8% to R124.4 billion, but would have been up 7.2% had the currency remained constant.
“The stronger rand and the significant year-on-year (YOY) depreciation of the naira against the US dollar had a negative translation impact on rand-reported results for the period.
The average naira depreciated by 25.8% against the US dollar in the year, and the closing rate was down 13.1% YOY. The average rand strengthened by 9.6% against the US dollar YOY, and the rand closed 10.7% stronger. In light of recent developments in SA, we expect the rand to remain robust throughout 2018,” the group said.
Reported data revenue increased by 19.4% to R28.2 billion. Digital revenue decreased by 6.9%, to R13 billion, but would have been up by 14% on a constant currency basis.
“The digital revenue is slightly disappointing, and there are two things going on in there: a very strong performance by Mobile Money and by our new rich media services, but a lot of pressure in the old value-added services subscription business, where we have been doing a big optimisation of that business largely in Nigeria,” Shuter said.
Active MTN Mobile Money customers increased by 5.7 million to 21.8 million across the group. Group voice revenue was largely flat. Shuter said: “Ideally, long-term flat voice revenue is a pretty good achievement,” although Nigeria actually saw outgoing voice revenue increase by 7.5% for the year.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 15.2% for the year, to R46 billion, while the EBITDA margin decreased by 1.4 percentage points to 34%.
Capital expenditure (capex) for the year was close to R31.5 billion, slightly higher than the previous guidance of R30 billion. The telco rolled out a total of 8 583 3G and 8 611 4G co-located sites in the year, which it says “resulted in a marked improvement in network quality and capacity across a number of our markets”.
MTN spent R11.4 billion on capex in SA and almost R9 billion in Nigeria. The group plans to spend a total of R27.7 billion in 2018, with the guidance for SA at R9.6 billion and for Nigeria at R6.9 billion.
The group declared a final dividend of R4.50 per share, which brings the total dividend for the year up to R7 per share. Shuter, however, said the board had decided to rebase the dividend for the 2018 financial year, setting the guidance at just R5 per share. He said the group believes it will grow the dividend by between 10% and 20% going forward.
At 31 December 2017, the group had 217 million subscribers, based on the new modernised definitions, a sharp drop of 23.4 million from the 240.4 million subscribers the group had a year ago.
At the telco’s half-year results last August, Shuter explained the telco’s initiative to modernise its subscriber definitions, which led to a 3.6% drop in half-year subscribers.
This, as the group culled subscribers, which were only regarded as active because they receive a bulk SMS, something Shuter said was “distorting the reality of the business”. Under the new, modernised subscriber definitions, MTN South Africa had 29.5 million active customers at the end of 2017, compared to 30.8 million at the end of 2016.
In SA, Shuter said the company is making progress in building up its post-paid subscribers “from shedding subscribers the last few years, to a much better performance in the second half of the year and, in fact, a pretty meaningful 130 000 net post-paid adds in the fourth quarter.
“A big focus for the next year will be to continue to rebuild post-paid and get our enterprise business really performing well,” he added.
In 2017, subscriber numbers in Cameroon, in particular, were further affected by the disconnection of approximately 3 million subscribers to ensure adherence with regulatory requirements on subscriber registration. The group also saw regulatory related disconnections in Uganda of 750 000 subscribers.
At the recently concluded NextNow Business Forum in Victoria Island, MTN Nigeria electrified the business community with a live demonstration of its forthcoming Communication Platform as a Service (CPaaS), a solution engineered to redefine how Nigerian enterprises connect with their customers.
Unlike traditional communication systems, MTN’s CPaaS is built for the realities of a mobile-first market. The platform unifies SMS, voice, WhatsApp, email, and more into a single, intuitive interface. This approach is especially significant in Nigeria, with over 107 million internet users, 45.4% of the total population, according to Data Report. This figure underscores the necessity for businesses to meet customers where they are.
During the demo, attendees witnessed how CPaaS enables two-way, real-time conversations between brands and customers. The platform’s support for rich media, instant analytics, and seamless integration with business workflows drew particular attention. These features are designed to empower businesses with data-driven insights and the agility to personalise every interaction, whether it’s a service notification, marketing campaign, or customer support exchange.
Akinbulejo Onabolu, Head of Enterprise Segment at MTN Nigeria, articulated the vision: “CPaaS gives enterprises the flexibility to interact with their customers on their preferred platforms; whether it’s chat, voice, or messaging, in a way that feels personal and immediate. We’re looking forward to the value this will unlock for businesses across industries once it launches.”
The fireside chat added depth to the conversation, with Omowunmi Olatunbosun, Head of SME Segment at MTN Nigeria, and Stephen Agbi of Bayobab, highlighting how digital engagement bridges the gap between businesses and audiences.
They emphasised that today’s consumers demand immediacy, relevance, and ease, qualities that CPaaS is built to deliver.
The stakes for digital transformation in Nigeria are high. In a report by Punch, the country’s enterprise tech market is projected to reach $22 billion by 2027, reflecting a surge in demand for scalable, cloud-based solutions that drive efficiency and customer loyalty.
The CPAAS Acceleration Alliance have estimated that globally, the CPaaS market is expected to grow from $14.7 billion in 2025 to $72.4 billion by 2035, at a compound annual growth rate of 18.4%, a testament to the platform’s transformative potential.
The event’s closing keynote from META’s Korhan Yunak reinforced the strategic value of digital channels like WhatsApp, which are now indispensable for business communication and engagement at scale.
As MTN Nigeria prepares for the Q3 2025 launch, the anticipation is unmistakable. With its promise of flexibility, intelligence, and seamless integration, MTN’s CPaaS platform is set to become the backbone of next-generation business-customer engagement in Nigeria, enabling enterprises to not just communicate but to connect, adapt, and grow in a digital-first era.
MTN Uganda is seeking input from stakeholders on a plan to structurally separate its mobile money service, MoMo, from its core telecoms business.
According to the company, the proposed change will be discussed at the upcoming extraordinary general meeting on July 2.
If approved, the telco’s fintech business will be run by a new company controlled by MTN Group Fintech Holdings B.V. and a trust benefiting minority shareholders following a merger.
Additionally, the restructuring also aligns with MTN Group’s ambition 2025 strategy which aims to unlock value, attract new investors, and strengthen regulatory compliance by creating standalone fintech entities in Uganda, Ghana, and Nigeria.
The company’s fintech division has over 13 million customers, with an 18.4% revenue increase in the first quarter of 2025, driven by 19.0% growth in mobile money services, 19.8% growth in transaction volumes, and a 31.4% increase in transaction value.
Reports say the decision is part of the telco’s compliance with the National Payment Systems Act 2020, which mandates mobile money businesses to operate as standalone entities, and to align with MTN Group’s regional fintech strategy.
MTN Uganda, which is led by CEO Sylvia Mulinge, highlighted that the implementation of the proposed transaction will be subjected to a number of conditions and regulatory procedures.
“The implementation of the proposed transaction shall be subject to a number of conditions, including the company and MTN MoMo receiving all required regulatory approvals and no-objections and complying with any regulatory conditions,” said MTN Uganda in notice.
Netflix has announced plans to invest more than €1 billion in Spanish film and television productions over the next four years, reinforcing its commitment to Spain as a key creative hub in Europe.
The announcement was made by co-chief executive Ted Sarandos at an event held at Netflix’s production studios near Madrid, celebrating the company’s 10-year presence in the country.
Sarandos emphasized that the investment would contribute significantly to Spain’s economy, create jobs, and enable the streaming platform to produce more local content. He was joined by Spanish Prime Minister Pedro Sánchez in unveiling the initiative.
Netflix first established its international production studios in Madrid in 2019, following the success of the Spanish-language hit series Money Heist.
Since then, its 22,000-square-meter facility has become one of Netflix’s major production centers within the European Union.
The company currently supports over 20,000 jobs in Spain, highlighting the nation’s growing influence in global entertainment.
The investment reflects Netflix’s ongoing strategy to expand its presence in European markets through original content and local talent.
China Expands Zero-Tariff Trade for Nigeria, 52 Other African Nations
Sterling Bank Pledges ₦2bn to Fully Fund University Scholarships
MTN Nigeria Unveils CPaaS Platform to Transform Business Communication
Aliko Dangote Signs out @ Dangote Sugar Refinery as Chairman
Court Declines Access Bank’s Request to Freeze MTNN Account over N180Bn Claims
General News2 days agoAfDB to Provide $184.1mfor Africa’s Largest Solar Energy, Battery Storage Project
News2 days agoReport Reveals New Malware Posing as an AI Assistant Steals User Data
General News2 days agoCourt Declines Access Bank’s Request to Freeze MTNN Account over N180Bn Claims
Telecom2 days agoMTN Mulls Establishment of Fintech Firm in Nigeria, Others
News2 days agoAliko Dangote Signs out @ Dangote Sugar Refinery as Chairman
E-Business2 days agoFG Mulls Fibre Optic Layout to Bridge Internet Gaps
E-Financial2 days agoFG to Train 100,000 Youths Annually in Forex Trading and Financial Skills
E-Financial1 day agoSterling Bank Pledges ₦2bn to Fully Fund University Scholarships