Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      World Bank set to back South Africa’s big energy grid roll-out

      20 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Sita hits back at critics, promises faster, automated procurement

      20 June 2025

      The transatlantic race to create the first television

      20 June 2025

      Listed: All the MVNOs in South Africa – 2025 edition

      19 June 2025
    • World

      Watch | Starship rocket explodes in setback to Musk’s Mars mission

      19 June 2025

      Trump Mobile dials into politics, profit and patriarchy

      17 June 2025

      Samsung plots health data hub to link users and doctors in real time

      17 June 2025

      Beijing’s chip champions blacklisted by Taiwan

      16 June 2025

      China is behind in AI chips – but for how much longer?

      13 June 2025
    • In-depth

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025
    • TCS

      TCS+ | AfriGIS’s Helen Hulett on how tech can help resolve South Africa’s water crisis

      18 June 2025

      TechCentral Nexus S0E2: South Africa’s digital battlefield

      16 June 2025

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025
    • Opinion

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » MTN adds 29 million customers but suspends full-year dividend

    MTN adds 29 million customers but suspends full-year dividend

    By Duncan McLeod10 March 2021
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Ralph Mupita

    MTN Group has reported a strong set of results for the 2020 financial year, adding 29 million customers, growing adjusted headline earnings per share by 52% and more than doubling operating cash flow to R28.3-billion.

    The group also reported a four-percentage point increase in return on equity to 17%.

    Despite the good numbers, MTN suspended its full-year dividend due to its “near-term focus on faster deleveraging of its holding company as well as three conditions which negatively impacted this objective”.

    The three conditions related to uncertainties around “cash upstreaming” (repatriation) from Nigeria, the timing of proceeds from the asset realisation programme, and Covid-19 impacts,” the group said.

    The board has suspended the dividend policy and anticipates communicating a revised medium-term dividend policy when we announce our 2021 results

    “In light of these material uncertainties, the board has also suspended the dividend policy and anticipates communicating a revised medium-term dividend policy when we announce our 2021 results in March 2022.”

    During this transition, the board anticipates paying a total ordinary dividend of at least R2.60/share for the 2021 financial year. The board will consider returning further cash to shareholders in the form of special dividends or share repurchases after the release of 2021 results.

    “We had very strong second half of the year,” CEO Ralph Mupita said in a call with journalists on Wednesday.

    Ambition 2025

    MTN has announced a new strategy, called Ambition 2025, to “accelerate growth and unlock the value of its infrastructure assets and platforms”. The results are the first annual results presented by Mupita in the CEO role. Mupita was previously group chief financial officer and replaced Rob Shuter in the hot seat last year. Shuter has taken a senior role at the UK’s BT Group.

    “We continued to perform favourably against our medium-term targets,” Mupita said in a statement. In constant currency terms, service revenue grew by 11.9% to R170-billion, and earnings before interest, tax, depreciation and amortisation (Ebitda) increased by 13.4%. Group Ebitda margin improved by 0.9 percentage points to 42.7%.

    The strong results were supported by “pleasing growth” in the group’s larger operations and a “broad-based improvement” across all regions, MTN said.

    In 2020, the group added 19 million data users and almost 12 million MoMo (mobile money) users, to reach totals of over 114 million and 46 million respectively. Capital expenditure was R28.6-billion.

    Net debt was reduced by R12-billion, to R43-billion.

    Under the Ambition 2025 strategy, Mupita said the group is “looking to structurally separate our infrastructure assets and platforms, such as fintech, to reveal value and attract third-party capital and partnerships into these businesses, over the medium term”.

    “We believe that Ambition 2025 will position the business to capture the exciting opportunities across our markets and our medium-term guidance has been enhanced to reflect this accelerating growth outlook. To support this, we plan to invest approximately R29.1-billion in our network, fintech and digital services platforms in 2021.”  — © 2021 NewsCentral Media



    MoMo MTN MTN MoMo Ralph Mupita top
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleLoad shedding is back
    Next Article Business confidence slips as pandemic woes linger

    Related Posts

    Listed: All the MVNOs in South Africa – 2025 edition

    19 June 2025

    MTN CEO edges Vodacom rival in pay stakes – but just barely

    18 June 2025

    TechCentral Nexus S0E2: South Africa’s digital battlefield

    16 June 2025
    Company News

    Making IT happen: how Trade Link gears up to enable SA retail strategies

    20 June 2025

    Why parents choose CambriLearn for online education

    19 June 2025

    Disrupt first, ask questions later – the uncomfortable truth about incident response

    18 June 2025
    Opinion

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    AI and the future of ICT distribution

    16 June 2025

    Singapore soared – why can’t we? Lessons South Africa refuses to learn

    13 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.