MTN

Extract from Portfolio Manager Commentaries – June 2023

MTN is a leading African mobile operator with key geographies: South Africa, Nigeria, and Ghana. Low data and smartphone penetration provide the company with good revenue growth potential. This revenue growth potential is also supplemented by a nascent mobile money business recently launched in Nigeria. The additional revenue from financial services will leverage the invested capital and networks of the mobile business and hence contribute to improving returns on capital for the group and enhancing the organic growth prospects from the traditional telephony business. The business has a sound balance sheet that should allow it to weather short-term volatility in their operating environments. We think the share still offers significant upside from these levels.