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Amidst challenging economic conditions and escalating competition across its key markets, MTN Group has entered into a memorandum of understanding with Mastercard to divest a minority stake in its Fintech division. This deal is based on an enterprise valuation of $5.2 billion.
In the wake of its recently published financial performance report, the telecommunications conglomerate’s earnings saw a decline. The South Africa-based company unveiled that it achieved a pretax profit of 18.31 billion South African Rand ($966.2 million), in comparison to 18.58 billion rands in the prior year.
MTN Group reported a profit after tax attributable to equity holders of 9.24 billion rands for the six months ending June 30, up from 8.04 billion rands in the corresponding period last year.
The financial report indicated an earnings per share (EPS) of 5.01 rands, marking a notable 15.70% increase compared to the 4.33 rands delivered in the same period in 2022.
MTN Group announced that the finalization of definitive terms is anticipated imminently following due diligence. This transaction, contingent upon customary closing conditions, aligns with MTN’s Ambition 2025 growth strategy.
The telecom operator’s revenue surged to 113.20 billion rands from 97.49 billion rands previously. Notably, data revenue witnessed a growth of 16.5%, while fintech revenue expanded by 21.4% on a constant currency basis.
Despite navigating challenges in its operational landscape and confronting short-term impacts on its top-line revenue and margins, MTN affirmed its medium-term guidance. The company had previously communicated its target of achieving at least mid-teens group service revenue growth in the medium term.
With its extensive presence across African markets, the telecommunications group disclosed that the finalization of definitive investment agreements is expected in the near future.
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