MTN Group Limited
Fivei -YearReviewi fortheyearended 31 December2023
Leading digital solutions for Africa's progress
Five-year financial review
for the year ended 31 December 2023
Restated2 | ||||||
CAGR1 | 2023 | 2022 | 2021 | 2020 | 2019 | |
Income statement | % | Rm | Rm | Rm | Rm | Rm |
Revenue | 10 | 221 056 | 207 003 | 181 646 | 179 361 | 151 460 |
Other income3 | (32) | 324 | 410 | 1 889 | 6 228 | 1 510 |
Operating expenses4 | 11 | (132 600) | (117 574) | (107 377) | (104 278) | (88 741) |
EBITDA | 8 | 88 780 | 89 839 | 76 158 | 81 311 | 64 229 |
Depreciation and amortisation | 7 | (42 268) | (34 618) | (34 640) | (35 651) | (32 458) |
Impairment of goodwill | - | (625) | (583) | (1 065) | (342) | |
Operating profit | 10 | 46 512 | 54 596 | 40 935 | 44 595 | 31 429 |
Net finance costs | 27 | (39 069) | (18 326) | (14 448) | (18 233) | (15 184) |
Finance income | 13 | 3 055 | 2 042 | 1 198 | 1 493 | 1 873 |
Finance costs | 7 | (18 954) | (14 313) | (13 095) | (15 189) | (14 693) |
Foreign exchange losses | 77 | (23 170) | (6 055) | (2 551) | (4 537) | (2 364) |
Net monetary gain | (1) | 744 | 1 251 | 275 | 1 582 | 787 |
Share of profit of associates and joint ventures | ||||||
after tax | 50 | 3 581 | 3 369 | 2 054 | 1 142 | 705 |
Profit before tax | (10) | 11 768 | 40 890 | 28 816 | 29 086 | 17 737 |
Income tax expense | 3 | (7 751) | (17 036) | (11 822) | (9 439) | (6 908) |
Profit after tax | (22) | 4 017 | 23 854 | 16 994 | 19 647 | 10 829 |
Profit after tax attributable to | ||||||
- Equity holders of the Company | (18) | 4 092 | 19 037 | 13 750 | 17 022 | 9 100 |
- Non-controlling interests | (75) | 4 817 | 3 244 | 2 625 | 1 729 | |
Headline earnings | (9) | 5 690 | 20 532 | 17 781 | 13 473 | 8 411 |
- Compound annual growth rate.
- Restated, refer to note 11 of the MTN Group Annual Financial Statements for the year ended 31 December 2023.
- Includes a gain on disposal/dilution of investment in joint ventures and associates.
- Includes a loss on deconsolidation of subsidiary.
EBITDA (R million) and EBITDA margin (%)
229 | 81 311 | 76 158 | 89 839 | 88 780 | |
64 | |||||
42.4 | 45.3 | 41.9 | 43.4 | 40.2 | |
2019 | 2020 | 2021 | 2022 | 2023 | |
● EBITDA | EBITDA margin |
Headline earnings and dividends per share (cents)
987 | 1 137 | |||||||||
550 | 749 | |||||||||
468 | 0 | 300 | 330 | 330 | 315 | |||||
2019 | 2020 | 2021 | 2022 | 2023 |
- Dividends per share ● Headline earnings per share
Five-Year Financial Review 2023 | 01 |
Five-year financial review
Five-year financial review continued
for the year ended 31 December 2023
Restated2 | Restated2 | |||||
CAGR1 | 2023 | 2022 | 2021 | 2020 | 2019 | |
Statement of financial position | % | Rm | Rm | Rm | Rm | Rm |
Property, plant and equipment | 4 | 117 197 | 108 776 | 99 769 | 100 576 | 98 312 |
Intangible assets and goodwill | 19 | 74 813 | 50 277 | 43 760 | 39 069 | 36 866 |
Right of use assets | 2 | 48 207 | 44 095 | 36 825 | 46 156 | 44 984 |
Investments and other non-current assets | (1) | 38 793 | 37 455 | 38 389 | 42 681 | 40 797 |
Deferred tax assets | 19 | 10 223 | 6 571 | 7 223 | 6 355 | 5 070 |
Mobile money deposits | 35 | 50 173 | 39 273 | 38 869 | 28 008 | 15 315 |
Bank balances, deposits and cash | 20 | 48 547 | 54 585 | 46 289 | 37 878 | 23 781 |
Other current assets | 2 | 39 871 | 40 961 | 41 251 | 44 203 | 36 348 |
Non-current assets held for sale | 69 | 6 890 | 3 358 | 7 291 | 4 016 | 838 |
Total assets | 10 | 434 714 | 385 351 | 359 666 | 348 942 | 302 311 |
Equity attributable to equity holders of the | ||||||
Company | 13 | 139 205 | 114 488 | 109 181 | 102 873 | 83 897 |
Non-controlling interests | 49 | 10 978 | 5 151 | 3 434 | 3 352 | 2 203 |
Total equity | 15 | 150 183 | 119 639 | 112 615 | 106 225 | 86 100 |
Interest-bearing liabilities | (3) | 85 039 | 81 990 | 80 902 | 96 249 | 94 280 |
Lease liabilities | 63 408 | 55 850 | 45 315 | 49 481 | 46 327 | |
Non-interest-bearing liabilities | 17 | 122 383 | 119 800 | 107 932 | 85 994 | 65 201 |
Deferred tax liabilities | (14) | 5 709 | 4 971 | 8 500 | 9 909 | 10 403 |
Liabilities directly associated with non-current | ||||||
assets held for sale | 7 992 | 3 101 | 4 402 | 1 084 | - | |
Total liabilities | 7 | 284 531 | 265 712 | 247 051 | 242 717 | 216 211 |
Total equity and liabilities | 10 | 434 714 | 385 351 | 359 666 | 348 942 | 302 311 |
- Compound annual growth rate.
- Restated, refer to note 11 of the MTN Group Annual Financial Statements for the year ended 31 December 2023.
Total assets (R million)
302 311 | 348 942 | 359 666 | 385 351 | 434 714 | 83 897 |
10.0
Equity (R million) and return (%)
102 873 | 109 181 | 114 488 | 139 205 |
14.4 | 16.8 | 18.4 |
4.5 |
2019 | 2020 | 2021 | 2022 | 2023 | 2019 | 2020 | 2021 | 2022 | 2023 |
● Equity attributable to equity holders of the Company Return on average shareholders' funds
Five-Year Financial Review 2023 | 02 |
Five-year financial review continued
for the year ended 31 December 2023
CAGR1 | 2023 | 2022 | 2021 | 2020 | 2019 | |
Statement of cash flows | % | Rm | Rm | Rm | Rm | Rm |
Net cash inflows from operating activities | 15 | 64 058 | 68 121 | 67 286 | 58 513 | 36 289 |
Net cash used in investing activities | 21 | (52 255) | (43 436) | (30 953) | (33 512) | (24 542) |
Net cash used in financing activities | 22 | (9 485) | (17 419) | (26 179) | (13 705) | (4 340) |
Net increase in cash and cash equivalents | (25) | 2 318 | 7 266 | 10 154 | 11 296 | 7 407 |
Cash and cash equivalents at beginning of | ||||||
the year | 31 | 43 634 | 39 019 | 30 636 | 21 607 | 14 967 |
Exchange losses on cash and cash equivalents | 59 | (8 814) | (2 105) | (1 895) | (2 143) | (1 382) |
(Increase)/decrease in cash classified as | ||||||
held for sale | - | (583) | (546) | 124 | ( 124) | 615 |
Cash and cash equivalents at end of the year | 14 | 36 555 | 43 634 | 39 019 | 30 636 | 21 607 |
Statement of cash flows - extracts | ||||||
Cash generated from operations | 14 | 93 127 | 94 247 | 88 670 | 78 580 | 55 197 |
Dividends paid to equity holders of the Company | (11) | (5 963) | (5 414) | - | (6 462) | (9 352) |
Acquisition of property, plant and equipment | 8 | (32 187) | (31 398) | (24 413) | (23 502) | (23 416) |
1 Compound annual growth rate.
Five-Year Financial Review 2023 | 03 |
Five-year financial review
Five-year financial review continued
for the year ended 31 December 2023
CAGR1 | Restated2 | Restated2 | ||||
% | 2023 | 2022 | 2021 | 2020 | 2019 | |
Performance per ordinary share | ||||||
Basic earnings (cents) | (18) | 227 | 1 054 | 763 | 946 | 506 |
Diluted earnings (cents) | (18) | 223 | 1 028 | 744 | 936 | 498 |
Headline earnings (cents) | (9) | 315 | 1 137 | 987 | 749 | 468 |
Dividends (cents) | (12) | 330 | 330 | 300 | - | 550 |
Net asset value - book value (rands)3 | 13 | 73.9 | 60.8 | 57.9 | 54.6 | 44.5 |
Returns and profitability ratios | ||||||
Return on assets (%)4 | 11.3 | 14.7 | 11.6 | 13.7 | 11.2 | |
EBITDA margin (%) | (1) | 40.2 | 43.4 | 41.9 | 45.3 | 42.4 |
Adjusted free cash flow | (5) | 25 158 | 33 045 | 36 773 | 48 272 | 31 361 |
EBITDA multiple (times)5 | (5) | 2.9 | 3.0 | 4.7 | 2.1 | 3.5 |
Effective taxation rate (%) | 14 | 65.9 | 41.7 | 41.0 | 32.5 | 38.9 |
Solvency and liquidity ratios | ||||||
Gearing (%)6 | (26) | 24.3 | 22.9 | 30.7 | 55.0 | 81.9 |
Interest cover (times)7 | 3 | 2.5 | 3.8 | 3.1 | 2.9 | 2.1 |
Dividends cover (times)8 | 3 | 0.9 | 3.3 | 3.1 | N/A | 0.8 |
Net debt to EBITDA9 | (22) | 0.4 | 0.3 | 0.5 | 0.7 | 1.1 |
Operating cash flow/revenue (%) | 4 | 42.1 | 45.5 | 48.8 | 43.8 | 36.4 |
Share statistics | ||||||
Closing price (cents per share) | 9 | 11 550 | 12 730 | 17 071 | 6 019 | 8 249 |
Market capitalisation (Rm) | 9 | 217 633 | 239 868 | 321 664 | 113 414 | 155 433 |
Definitions
- Compound annual growth rate.
- Restated, refer to note 11 of the MTN Group Annual Financial Statements for the year ended 31 December 2023.
- Equity attributable to equity holders of the Company divided by the number of ordinary shares in issue at year-end.
- Operating profit as a percentage of the average of the opening and closing balances of total assets.
- Market capitalisation plus net debt (interest-bearing liabilities less bank balances, deposits and cash) divided by EBITDA for the year.
- Net debt as a percentage of total equity.
- Operating profit divided by interest expense.
- Headline earnings divided by total dividend in respect of the applicable financial year.
- Net debt at year end, divided by EBITDA.
Market capitalisation (R million) | Closing share price (cents) | |||||||||
155 433 | 113 414 | 321 664 | 239 868 | 217 633 | 8 249 | 6 019 | 17 071 | 12 730 | 11 550 | |
2019 | 2020 | 2021 | 2022 | 2023 | 2019 | 2020 | 2021 | 2022 | 2023 |
Five-Year Financial Review 2023 | 04 |
Five-year financial review continued
for the year ended 31 December 2023
CAGR | ||||||
Non-financial information | % | 2023 | 2022 | 2021 | 2020 | 2019 |
Countries in which MTN has GSM licences | 19 | 19 | 21 | 21 | ||
Subscriber numbers (million) | (2) | 19 | 289.1 | 272.4 | 279.6 | 250.8 |
Group entities (excluding joint ventures) | 4 | 237.7 | 233.4 | 219.2 | 228.3 | 201.3 |
Joint ventures | 4 | 57.1 | 55.7 | 53.2 | 51.3 | 49.5 |
Countries in which MTN has largest market share | - | 13 | 15 | 13 | 13 | 13 |
Total number of employees | (2) | 17 684 | 17 462 | 16 390 | 19 295 | 19 288 |
Group entities (excluding joint ventures) | (2) | 15 401 | 15 150 | 14 119 | 16 747 | 16 741 |
Joint ventures | (3) | 2 283 | 2 312 | 2 271 | 2 548 | 2 547 |
CO2 emissions from energy use (tonnes) | 13 | 3 713 379 | 5 296 351 | 5 236 608 | 2 140 602 | 2 281 348 |
Operational information | ||||||
South Africa | ||||||
Mobile penetration (%) | (1) | 186 | 175 | 175 | 190 | 190 |
Market share (%) | 1 | 29 | 31 | 30 | 30 | 28 |
Subscribers (million) | 7 | 37 | 37 | 35 | 32 | 29 |
ARPU (ZAR)1 | (3) | 95 | 94 | 98 | 105 | 109 |
EBITDA margin (%) | (1) | 36 | 39 | 39 | 39 | 37 |
Capex/revenue (%) | 5 | 30 | 36 | 21 | 17 | 25 |
Nigeria | ||||||
Mobile penetration (%) | 1 | 70 | 69 | 64 | 76 | 66 |
Market share (%) | 2 | 52 | 51 | 51 | 49 | 49 |
Subscribers (million) | 6 | 80 | 76 | 68 | 77 | 64 |
ARPU (US$)1 | (6) | 3 | 5 | 5 | 4 | 4 |
EBITDA margin (%) | (3) | 49 | 53 | 53 | 51 | 54 |
Capex/revenue (%) | 2 | 23 | 25 | 25 | 22 | 21 |
Nigerian naira average foreign exchange rate | 7 | 32.58 | 26.05 | 27.54 | 23.24 | 25.05 |
Nigerian naira closing foreign exchange rate | 17 | 49.65 | 27.05 | 26.61 | 27.28 | 26.09 |
Ghana | ||||||
Mobile penetration (%) | (2) | 111 | 132 | 125 | 125 | 118 |
Market share (%) | 6 | 71 | 67 | 66 | 63 | 56 |
Subscribers (million) | 8 | 27 | 29 | 25 | 24 | 20 |
ARPU (US$)1 | (4) | 4 | 2 | 5 | 4 | 4 |
EBITDA margin (%)2 | 4 | 58 | 57 | 55 | 53 | 51 |
Capex/revenue (%) | 7 | 27 | 19 | 19 | 18 | 21 |
Ghanaian cedi average foreign exchange rate | 14 | 0.64 | 0.54 | 0.40 | 0.35 | 0.38 |
Ghanaian cedi closing foreign exchange rate | 13 | 0.66 | 0.62 | 0.40 | 0.40 | 0.41 |
- Annual ARPU.
- Excluding profit on tower sales.
Five-Year Financial Review 2023 | 05 |
Five-year financial review
Five-year financial review continued
for the year ended 31 December 2023
CAGR | ||||||
Operation information | % | 2023 | 2022 | 2021 | 2020 | 2019 |
Iran | ||||||
Mobile penetration (%) | 3 | 145 | 143 | 138 | 135 | 129 |
Market share (%) | - | 43 | 43 | 43 | 43 | 43 |
Subscribers (million) | 4 | 54 | 53 | 50 | 49 | 47 |
ARPU (US$)1 | (5) | 2 | 1 | 2 | 1 | 2 |
EBITDA margin (%) | 2 | 41 | 42 | 36 | 37 | 38 |
Capex/revenue (%) | 8 | 44 | 38 | 33 | 25 | 32 |
Iranian rial average foreign exchange rate | 29 | 19 379 | 15 736 | 15 426 | 10 118 | 7 013 |
Iranian rial closing foreign exchange rate | 27 | 21 372 | 16 914 | 15 392 | 17 459 | 8 121 |
Cameroon | ||||||
Mobile penetration (%) | (2) | 75 | 75 | 77 | 77 | 80 |
Market share (%) | 2 | 53 | 52 | 51 | 51 | 49 |
Subscribers (million) | 2 | 11 | 11 | 11 | 10 | 10 |
ARPU (US$)1 | 4 | 4 | 4 | 4 | 3 | 3 |
EBITDA margin (%)2 | 6 | 38 | 36 | 35 | 32 | 30 |
Capex/revenue (%) | 54 | 60 | 14 | 13 | 14 | 11 |
Cameroon Communaute Financière Africaine | ||||||
franc average foreign exchange rate | (5) | 32.84 | 37.98 | 37.37 | 34.69 | 40.57 |
Cameroon Communaute Financière Africaine | ||||||
franc closing foreign exchange rate | (6) | 32.45 | 35.93 | 36.15 | 36.42 | 41.78 |
Côte d'Ivoire | ||||||
Mobile penetration (%) | - | 140 | 141 | 148 | 144 | 138 |
Market share (%) | 4 | 39 | 39 | 36 | 34 | 34 |
Subscribers (million) | 8 | 17 | 16 | 15 | 13 | 12 |
ARPU (US$)1 | (8) | 2 | 3 | 3 | 4 | 3 |
EBITDA margin (%)2 | 6 | 33 | 33 | 35 | 35 | 26 |
Capex/revenue (%) | 49 | 66 | 21 | 14 | 12 | 13 |
Côte d'Ivoire Communaute Financière Africaine | ||||||
franc average foreign exchange rate | (5) | 32.87 | 38.08 | 37.36 | 34.76 | 40.57 |
Côte d'Ivoire Communaute Financière Africaine | ||||||
franc closing foreign exchange rate | (6) | 32.45 | 35.93 | 36.14 | 36.47 | 41.78 |
- Annual ARPU.
- Excluding profit on tower sales.
Five-Year Financial Review 2023 | 06 |
Five-year financial review continued
for the year ended 31 December 2023
CAGR | ||||||
Operation information | % | 2023 | 2022 | 2021 | 2020 | 2019 |
Uganda | ||||||
Mobile penetration (%) | 8 | 68 | 62 | 60 | 59 | 50 |
Market share (%) | 3 | 62 | 62 | 60 | 58 | 55 |
Subscribers (million) | 12 | 20 | 17 | 16 | 14 | 13 |
ARPU (US$)1 | (1) | 3 | 3 | 3 | 3 | 3 |
EBITDA margin (%) | 2 | 51 | 52 | 51 | 50 | 47 |
Capex/revenue (%) | 11 | 26 | 42 | 20 | 16 | 17 |
Uganda shilling average foreign exchange rate | (6) | 202.47 | 225.50 | 241.06 | 225.45 | 256.68 |
Uganda shilling closing foreign exchange rate | (6) | 206.91 | 218.43 | 222.90 | 249.19 | 262.14 |
Sudan | ||||||
Mobile penetration (%) | (11) | 39 | 60 | 63 | 65 | 63 |
Market share (%) | (2) | 32 | 34 | 34 | 35 | 35 |
Subscribers (million) | (11) | 6 | 9 | 9 | 10 | 9 |
ARPU (US$)1 | 4 | 2 | 3 | 1 | 2 | 1 |
EBITDA margin (%) | (3) | 31 | 53 | 52 | 43 | 36 |
Capex/revenue (%) | (6) | 18 | 31 | 23 | 15 | 23 |
Sudanese pound average foreign | ||||||
exchange rate | 82 | 34.14 | 33.51 | 25.07 | 3.32 | 3.14 |
Sudanese pound closing foreign exchange rate | 94 | 45.60 | 34.03 | 27.47 | 3.76 | 3.23 |
1 Annual ARPU.
Five-Year Financial Review 2023 | 07 |
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MTN Group Ltd. published this content on 29 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2024 21:48:05 UTC.