Latest news with #CharlesMolapisi
The Citizen
15 hours ago
- Business
- The Citizen
MTN downgrades SA CEO and shakes up leadership
The mobile network operator said Charles Molapisi, MTN SA CEO, will go back to being the group's chief technical and information officer. Africa's largest mobile network operator, MTN, has announced significant changes to its South Africa leadership as part of a new strategy and has declared no dividends for the first half of 2025. The mobile network operator said Charles Molapisi, MTN SA CEO, will go back to being the group's chief technical and information officer. The news was announced on Monday, alongside the company's interim results for the six months ended June 2025. This follows MTN's net loss of R11.2 billion for the period ended December 2024. However, the mobile network operator has seen a turnaround, with results showing an increase in revenue up to R109.3 billion. ALSO READ: Sued for a staggering R78 billion, MTN turns to the Constitutional Court MTN leadership shakeup MTN operates in 19 markets across Africa and the Middle East, including South Africa, Nigeria, Ghana, Cameroon, Ivory Coast, Uganda, Syria and Sudan. Molapisi will be succeeded by Ferdi Moolman, the current group chief risk officer (GCRO). 'Charles led MTN SA through a challenging period of high-power outages and network resilience, maintaining the company's network leadership,' said the group in the announcement. Yolanda Cuba, currently vice president (VP) for the South and East Africa (SEA) region, will step down from the group exco to become deputy CEO and executive director of MTN SA. 'Both Ferdi and Yolanda bring extensive group-wide experience and will collaborate to accelerate growth and maximise returns in MTN SA.' Incoming MTN SA CEO, Ferdi Moolman. Picture: LinkedIn Leadership changes from 1 November Below are other leadership changes to take effect from 1 November 2025. Group chief commercial position will now include strategy and transformation responsibilities – Selorm Adadevoh. Group chief technology and information officer – Charles Molapisi. Group chief human resources officer – Paul Norman. Group chief risk officer – to be announced. Ismail Jaroudi, VP of Middle East and North Africa, will step down from group exco and assume the role of VP of special projects in the office of the group president and CEO, focused on portfolio optimisation initiatives. He will also continue his role as CEO of MTN Dubai. ALSO READ: MTN Group downplays Iran strife No dividends Regarding the group's performance, the mobile network operator reported profit before tax of R21.3 billion. Profit after tax attributable to equity holders of the company accelerated to R9.7 billion, while headline earnings came in at 645 cents per share. However, the group said it will not be declaring any dividends for the period. 'No interim dividend was declared for H1 2025 (H1 2024: 0). The board of directors anticipates paying a minimum ordinary final dividend of 370 cents per share for the financial year 2025.' Future of MTN In the interim results, MTN said it is focusing on accelerating the performance of MTN SA and sustaining the momentum in MTN Nigeria and MTN Ghana. 'Our balance sheet health and financial flexibility remain critical to our operational and strategic execution. 'We remain on track to achieve our target of R7-8 billion in cost savings between 2024-2026.' NOW READ: Africa top 200 report: South African brands take top 10 spots
The South African
17-06-2025
- Business
- The South African
SA's network providers grilled in parliament
The CEOs of South Africa's network providers faced the music last week in parliament over sub-standard service delivery to the poor. Fronting up to Members of Parliament (MPs) in the Communications Committee on Friday 13 June 2025, South Africa's network providers were openly criticised for not prioritising poor and rural communities. The committee says its goal is to achieve 'universal connectivity' in the country. Specifically, Vodacom, MTN, Cell C, Telkom, and Rain had to answer for poor connectivity in rural communities. As well as their on-going pursuit of expiration policies for data and airtime services. In turn, the CEOs of SA's network providers insisted to the committee they've made major strides in expanding coverage. CEOs say their companies have made great strides, but MPs think more can and should be done for 'universal connectivity' in South Africa. Image: Pixabay At the centre of this furore is the fact the nearly 45% of South African residents need a smartphone with data access to verify their SASSA grants. Recent security updates to stave off fraud and identity theft from the South African Social Security Agency now requires a smartphone and data for biometric verification. As such, the committee believes network providers can do more regarding the cost of data. And called for them to consider measures to further reduce the cost and prioritise rural connectivity, reports The Citizen . Attending MPs also keenly challenged the logic behind data and airtime expiry. Saying, 'It's purely capitalistic exploitation of consumers. Data and airtime are not perishable goods. Therefore, their expiration is unjust and violates consumer rights,' said the committee. Another MP called South Africa's network providers 'loan sharks.' 'Instead of cutting data and airtime costs, they are advancing it,' said the MP. Likewise, the high salaries paid to CEOs of network providers was also called into question. Especially, in light of uplifting poor and rural communities. The committee meets with the Department of Communications and Digital Technologies (DCDT) in the coming weeks to deliberate on its budget. Another conversation took place around constructing a South African satellite. MTN's CEO, Charles Molapisi, told the committee that it has partnerships with non-terrestrial and satellite players such as Starlink. Last month, South Africa took a step closer to obtaining Elon Musk's Starlink satellite internet service. The DCDT published a policy directive around the Electronic Communications Act (ECA) that requires a minimum of 30% shares be in the hands of historically disadvantaged individuals. Many think this will pave the way for the service to enter the country, even though Elon Musk is not black or historically disadvantaged. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Yahoo
13-05-2025
- Business
- Yahoo
MTN Group Ltd (MTNOF) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Group Service Revenue Growth: 19.8% in constant currency for Q1. Data Revenue Growth: 28.7% in constant currency. Fintech Revenue Growth: 25.2% in constant currency. EBITDA Margin: 44.1% in constant currency, up 5.3 percentage points. MTN Nigeria Service Revenue Growth: 40.4% in constant currency. MTN Ghana Service Revenue Growth: 39.5% in constant currency. MTN South Africa Service Revenue Growth: 2.6% year on year. Subscriber Base: Approximately 297 million, up 4.7% year on year. Active Data Subscribers: Increased by 9.1% to 162 million. Fintech Transaction Volumes Growth: 13.9% increase. Fintech Transaction Values Growth: 48.9% increase. CapEx Deployment: 7.5 billion with a CapEx intensity of 15.2%. Liquidity Headroom: 38 billion rand as of March 31. Warning! GuruFocus has detected 8 Warning Signs with MTNOF. Release Date: May 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. MTN Group Ltd (MTNOF) reported a strong Q1 performance with a 19.8% increase in service revenue, driven by significant growth in data (28.7%) and fintech (25.2%). The company achieved a notable expansion in its EBITDA margin, which increased by 5.3 percentage points to 44.1% on a constant currency basis. MTN Group Ltd (MTNOF) saw a substantial increase in active data subscribers, up 9.1% to 162 million, and data traffic grew by 30.2% year on year. The fintech business showed robust growth, with transaction volumes increasing by 13.9% and transaction values by 48.9%, indicating strong demand for digital financial services. MTN Group Ltd (MTNOF) maintained a healthy balance sheet and liquidity position, with a consolidated net debt to EBITDA ratio of 0.7 times and a liquidity headroom of 38 billion rand as of March 31, 2025. MTN South Africa's service revenue growth was slower than expected at 2.6%, with prepaid performance under pressure due to competitive intensity. The company faces challenges in the South African market, particularly in the prepaid segment, where customer behavior remains value-seeking. Despite a 19.3% increase in data traffic, MTN South Africa's data revenue growth was only 3.9%, indicating potential pricing or competitive challenges. MTN Nigeria, while showing strong revenue growth, is still in negative equity, affecting its ability to declare dividends. The company is cautious about geopolitical risks and macroeconomic uncertainties that could impact its markets, particularly in relation to global aid funding and international trade. Q: Can you elaborate on the slow growth in South Africa's service revenue and EBITDA, and the competitive landscape in SA pre-paid? What would it take for SA Prepaid to grow at mid-single digits? A: Charles Molapisi, CEO of MTN South Africa, explained that Q1 and Q2 were expected to be under pressure, but interventions like dealer incentives and localized offers are in place. The competitive landscape is challenging, with Telkom leading in the pre-paid segment, particularly in Johannesburg. Recovery is expected in H2 as these initiatives take effect. Q: What drives your network sharing initiatives with Airtel? Is it only for owned towers or can this be executed in leased towers as well? A: Ralph Mupita, Group CEO, stated that the focus is on rural connectivity and quality of service obligations. The initiatives do not violate existing MLAs and primarily involve passive sharing, such as fiber and rural connectivity, rather than active sharing which could conflict with tower company agreements. Q: Can you provide details on the power partnership in South Africa with Vodacom? A: Charles Molapisi mentioned that Deloitte has been appointed to manage the partnership, focusing initially on energy security and rural coverage. The partnership aims to address regulatory concerns and improve service quality through collaboration. Q: What is the impact of the 199 rand 4G smartphone push on margins, and how is it being funded? A: Charles Molapisi explained that the initiative aims to migrate users from 2G/3G to 4G to optimize costs and spectrum use. MTN is not bearing the risk; a partner takes the risk, and they share the incremental revenue upside, with no upfront capital outlay from MTN. Q: Could you provide an update on the MasterCard transaction and the timing of the $200 million investment? A: Ralph Mupita stated that the separation of fintech operations in Ghana, Uganda, and Nigeria will trigger the investment. Once regulatory processes are complete, the funds will flow almost immediately, as agreed with MasterCard. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Zawya
07-05-2025
- Business
- Zawya
MTN South Africa aims to boost 4G adoption with budget smartphones
MTN South Africa said it will offer 1.2 million of its prepaid customers 4G smartphones for as little as R99 ($5.42) to support digital adoption for low-income households, as the country gears up to switch off 2G and 3G technologies. The initiative will be executed in three phases, starting this month until the end of 2026. In phase one, 5,000 "carefully selected" customers, based on usage profiles, spending patterns, and tenure, will be offered 4G smartphones, mainly in Gauteng province, MTN said in a statement on Monday. In phase two, more than 130,000 customers nationally will be offered the devices and then in the third phase, more than 1.1 million MTN customers across the country will benefit. The initiative comes as South Africa plans a total shutdown of 2G and 3G networks by December 31, 2027, to free up radio waves for faster 4G LTE and 5G networks. Critics of the plan had argued that phasing 2G and 3G networks risked exacerbating the digital divide as many low-income consumers, particularly those in remote areas, may not be able to afford smartphones designed for faster networks. This in turn would mean a drop in customer numbers for mobile operators and lower revenue. "At MTN, we are committed to going the extra mile to ensure that no one is left behind in the digital era. As the country transitions to technologies like 4G and 5G, it is vital that we take proactive steps to connect as many South Africans as possible," said MTN South Africa CEO Charles Molapisi. MTN, with 39.8 million customers in South Africa, of which 29.9 million are prepaid, said it will be offering a variety of smartphones throughout the initiative. For the first phase, it will distribute the Itel 5.5-inch smartphone, which usually retails for R740. For the other brands, they range between R800 rand and R1,100 per device. MTN South Africa will incur operational costs of between R150 and R190 per device through courier costs, call centre, marketing and incentives, it said. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Time of India
05-05-2025
- Business
- Time of India
MTN South Africa aims to boost 4G adoption with budget smartphones
JOHANNESBURG: MTN South Africa said it will offer 1.2 million of its prepaid customers 4G smartphones for as little as 99 rand ($5.42) to support digital adoption for low-income households, as the country gears up to switch off 2G and 3G technologies. The initiative will be executed in three phases, starting this month until the end of 2026. In phase one, 5,000 "carefully selected" customers, based on usage profiles, spending patterns, and tenure, will be offered 4G smartphones, mainly in Gauteng province, MTN said in a statement on Monday. In phase two, more than 130,000 customers nationally will be offered the devices and then in the third phase, more than 1.1 million MTN customers across the country will benefit. The initiative comes as South Africa plans a total shutdown of 2G and 3G networks by December 31, 2027, to free up radio waves for faster 4G LTE and 5G networks. Critics of the plan had argued that phasing 2G and 3G networks risked exacerbating the digital divide as many low-income consumers, particularly those in remote areas, may not be able to afford smartphones designed for faster networks. This in turn would mean a drop in customer numbers for mobile operators and lower revenue. "At MTN, we are committed to going the extra mile to ensure that no one is left behind in the digital era. As the country transitions to technologies like 4G and 5G, it is vital that we take proactive steps to connect as many South Africans as possible," said MTN South Africa CEO Charles Molapisi. MTN, with 39.8 million customers in South Africa, of which 29.9 million are prepaid, said it will be offering a variety of smartphones throughout the initiative. For the first phase, it will distribute the Itel 5.5-inch smartphone, which usually retails for 740 rand. For the other brands, they range between 800 rand and 1,100 rand per device. MTN South Africa will incur operational costs of between 150 rand and 190 rand per device through courier costs, call centre, marketing and incentives, it said.
