MTN announces board changes as share price falls over 9%

MTN’s share price plunged over 9% on Monday, even though it reported growth in its first half topline, profitability, and free cash flows, which were largely boosted by a turnaround at subsidiary MTN Nigeria, and despite lagging sales in South Africa.

- EDWARD WEST

A significant number of board changes were announced. The share price traded at R155.89 on Monday afternoon, a price still well above R90.28 a year ago.

Sales at its South Africa unit, its home market, dropped 3.7% in the six months to June 30. Group adjusted headline earnings a share increased by 76.1% to 657 cents per share. Reported HEPS increased by 352% to 645 cents. No interim dividend was declared.

The board said it has been evaluating their “Ambition 2025” strategy and, considering the evolving geopolitical, macroeconomic, and technology landscapes, resolved that the strategy remains appropriate. The board however said that the company’s focus was being streamlined into three principal platforms: “Connectivity,” “Fintech,” and “Digital Infrastructure.” The aim was for this three-platform approach to best position the group to capture value from the opportunities brought about by data adoption and financial inclusion across Africa.