MTN to hit bulls-eye on divestment plan, rakes in $140m from asset sales in H1

… plans music streaming services for Nigeria

MTN Group Ltd, the South African-based telecom giant, has announced that plans to raise 15 billion rand ($996 million) in asset by pruning operations and focusing on high growth markets are on track after it realized $140 million from asset sales in the first half of the year.

“So we’re well on track for our 15 billion rand (target),” MTN’S Chief Executive Rob

Shuter said on Thursday.

The mobile network operator earlier in March announced a 3-year divestment programme to exit e- commerce businesses and markets which were not strategic to its growth so it could concentrate on high potential markets in Africa and the Middle East.

MTN so far has sold down its interest in Jumia Technologies to 18.9 percent from 29.7 percent through an IPO of the ecommerce business in New York and is in the process of redeeming MTN Nigeria preference shares for $315 million, Reuters report.

The Telco also sold its shareholder loan in ATC Ghana to American Tower Corporation for 900 million rand, as well as its stake in investment fund Amadeus and online travel platform Travelstart for 1.2 billion rand. Habourvest was the named buyer for MTN’S Amadeus stake.

Meanwhile, plans are underway to complete MTN’S exit from Bostwana’s Mascom Wireless in the second half. MTN has a $300 million minority stake in Mascom.

Shuter also revealed that MTN will be launching its music streaming service, Musictime, in Nigeria in the second half.

MTN’S first half revenue jumped 15.48 percent to 72.50 billion rand helped by earnings from Nigeria as well as South Africa. The performance was the best in three years.

MTN Nigeria reported a revenue growth of 29.54 percent in the first half while South Africa counterpart reported 5.81 percent increase to bring the contribution from both markets to 30.66 percent and 30.89 percent of the overall group revenue in the period.

Editor: LOLADE AKINMURELE (lolade.akinmurele@businessdayonline.com) Graphics: Samuel Iduh