JOHANNESBURG-based MTN Group Limited (JSE:MTN) announced its quarterly results on Thursday as it posted drop in earnings before interest, taxes, depreciation and amortization, or Ebitda. The company said its numbers of subscriber dropped during the first half of the year, amid claims that it is on track to fulfill its full year outlook.
The firm announced its operational Ebitda during the six months ended June 30, dropped 28% to 21.18 billion South African rand or $1.58 billion from ZAR29.27 billion year over year.
On a constant currency basis, Ebitda surged 3.1%. MTN Group Limited (JSE:MTN) operational group revenue also came down 18.5% to ZAR64.32 billion from ZAR78.88 billion during the first six months of 2016 but on a constant currency basis, group revenue surged 6.7%, the company revealed.
In the meantime number of Subscribers during the first half of 2017 plunged 3.6% to 231.8 million affected by a drop in subscriber numbers in MTN Nigeria and MTN Ghana. This was mainly a result of the group’s scheme to update subscriber definitions to mirror the business’s changing mix of revenue streams, it said.
The South African cellular phone giant said in a statement that “Macro-economic conditions remain challenging across a number of our markets, with Nigeria continuing to experience a weaker naira as well as hard currency liquidity challenges.”
Despite country entered a technical recession in the first quarter, the currency value improved significantly against the U.S. dollar during the three month period, while many of the currencies in other markets destabilized, MTN said, adding that despite these macro-challenges, the group continues to deliver on its operational targets.
Furthermore MTN Group (MTN) also revealed that it is heading in the right direction to meet its 2017 financial outlook.