MTN Group president and CEO Ralph Mupita.

As competition for telecom services on the continent heats up, MTN Group is making moves to enhance its operations in Ghana, Uganda, and Cameroon in order to maintain robust growth in these countries.

MTN Group will prioritise the three mentioned markets, while also focusing on efforts to improve performance in Côte d'Ivoire, Rwanda, and Zambia.

Africa's largest telco’s half-year results showed a 20.8% decline in group service revenue, a 41.2% decrease in earnings before interest, tax, depreciation and amortisation (EBITDA) (before one-time items), and a drop of 11.6 percentage points in EBITDA margin to 32.0%.

In addition, basic earnings per share declined by 278, 6% to -409 cents per share, while headline earnings per share decreased by 198.5% to -256 cents.

The decline in financial performance comes as MTN's main market, Nigeria, continues to experience multiple issues, including currency volatility.

MTN today announced that overall subscribers increased by 0.8% to 288 million.

Ralph Mupita, MTN Group president and CEO, cautioned that notwithstanding the prevailing macroeconomic and geopolitical conditions affecting the telco’s trading environment and business, the company remains resolute.

He explained: “We are working to accelerate expense efficiencies to help manage the prevailing macro headwinds, in terms of which we continue to target $450 million (R8 billion) in cost savings over the next three years.

“This is also driving the ongoing evolution in customer behaviour to optimise consumption of bundles. Notwithstanding, we will continue the work to accelerate top line and deliver a healthy EBITDA, PAT (profit after cash) and cash flow profile.”

Mupita continued: “MTN Nigeria will press ahead with the initiatives outlined to restore its profitability and balance sheet profile, particularly in resolving its negative equity position. Tariff increases remain critical to the recovery and sustainability of the industry in Nigeria and sector engagements with the relevant authorities are ongoing”

In Nigeria, the Naira's significant devaluation against the US dollar in past year has had detrimental impact on MTN’s financial results.

According to MTN Nigeria, this impact is mostly seen in greater operating and net finance expenses, as well as foreign exchange losses.

MTN Nigeria's operations are exposed to foreign currency volatility on both its operating and capital expenditure.

Regarding the future, Mupita stated today: "In our markets portfolio, the priority is to sustain the strong growth in markets like Ghana, Uganda and Cameroon; while implementing the necessary initiatives to turn around the performances in Côted'Ivoire, Rwanda and Zambia."