MTN Group’s plan to separate its fintech business is progressing well, according to chief executive officer Ralph Mupita. MTN is expected to finish spinning off all its financial services units by the end of the first quarter of 2022, media reports said.
Recently, MTN Group also declared its profits for the first quarter of 2021. MTN said its service revenue grew by 17.8 percent to R42.3 billion during the period. Revenue from its fintech services also grew, expanding by over 31 percent as the value of fintech transactions increased by 87 percent to $53 billion.
Ralph Mupita told the media, “The MTN Group has delivered a solid Q1 2021 trading performance, with service revenue and EBITDA margins expanding on the back of continued commercial momentum and resilient networks.”
In March, it was reported that MTN Group is mulling spinning out its fibre and financial service units. According to media reports, MTN Wants to do so to unlock value. The strategy represents the next phase of an ongoing plan to sell assets and pay down debt so that MTN is freer to invest in expansion.
Last week, MTN and a Vodafone/Vodacom-led consortium were the only two parties to bid for telecom licences in Ethiopia. Ethiopia is looking to liberalise its telecom sector by offering two new licences and end a monopoly by state-owned telco Ethio Telecom. The government is also looking to sell a 40 percent stake in Ethio Telecom.