By Nqobile Dludla
South African mobile network operator MTN Group reported a 33% jump in first-quarter core profit due to strong service revenue growth, lower device cost of sales in its domestic market, and a more stable economic environment.
The jump in group earnings before interest, tax, depreciation and amortisation on a constant-currency basis in the quarter to end March reflects a 5.3 percentage point rise in margin to 44.1%, MTN said, without giving the value of EBITDA.
Group service revenue rose 10.4% overall in the quarter, or by 19.8% in constant currency terms. That was buoyed by 40.4% growth in MTN Nigeria and 39.5% in MTN Ghana.
MTN South Africa continued to face challenges, especially in the prepaid segment, the company said, with service revenue up 2.6%.
Customers “remained value-seeking and dynamic in the context of constrained economic growth and heightened competition in the sector”, the group said.
Its South Africa
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