MTN Group said on Tuesday that its core earnings jumped 27.9% in the first quarter, outpacing revenue growth as tighter cost control and strong performances in Nigeria and Ghana boosted profit.

Africa’s biggest telecommunications operator, which has more than 310 million customers in 16 markets across the continent, said its earnings before interest, tax, depreciation and amortisation (Ebitda) for the three months ended 31 March rose to R27.6-billion in constant currency.

Its Ebitda margin widened by three percentage points to 47.6%.

Group service revenue, excluding the effect of currency fluctuations, grew by 21.1% to R56.8-billion, led by strong performances in MTN Nigeria, up 41.7%, MTN Ghana, up 35.7%, MTN Cameroon, up 14.4%, and MTN Ivory Coast, up 18.3%.

Despite the continued competitive pressure on the prepaid market at MTN South Africa, service revenue growth edged up by 0.7%.

MTN said its prepaid recovery strategy remains on track, focusing on improving distribution, refreshing its offerings, tightening credit and competing more actively.

Stabilising

The company said the business is showing early signs of stabilising, with growth in cash recharges offsetting a decline in XtraTime usage, a service that allows prepaid customers to borrow airtime and data bundles from MTN when running low.

Data remained the biggest contributor to overall group service revenue growth, rising 35.4%. Voice revenue grew by 4.7%, while financial services revenue jumped 20%, MTN said.