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MTN asks Nigeria to lift block on tariff hikes

by Radarr Africa
written by Radarr Africa

MTN Group Ltd. asked the Nigerian government to reverse a directive cancelling an increase in telecom tariffs implemented by operators last month, citing rising costs in the industry.

The local unit of Africa’s largest wireless carrier, the Lagos-listed MTN Nigeria Communications Plc, is engaging with the industry regulator to push through the price increase, Chief Executive Officer Karl Toriola said on an investor call on Monday.

The Nigerian Communications Commission this month ordered mobile companies to reverse the 10% tariff hike, citing the non-approval of its board.

MTN started a phased implementation of the increase in mid-September, Toriola said.

Wireless-service providers in Nigeria are facing increased operating costs, with inflation accelerating to a 17-year high of 20.7% in September.

That’s been compounded by a weakening currency and a more than 200% jump in the price of diesel, which is required to power towers across the country due to the poor supply.

Besides soaring costs, the country’s largest telecom services provider is monitoring the impact of flooding on its operations, the CEO said, adding that the impact on the business has been “minimal”.

Nigeria’s worst floods in at least a decade are affecting 33 of the country’s 36 states and hampering businesses in agriculture and industries.

About 180,000 houses have been destroyed and around 1.4 million acres of farmland has been damaged, according to the Ministry of Humanitarian Affairs.

South: My broadband

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AfricaAFRICA NEWSBusinessMobile Telecommunications Network (MTN)NewsNigeriaSouth AfricaSouthern AfricaTelecommunicationsWestern Africa

MTN repays billions in foreign debt due 2024

by Radarr Africa
written by Radarr Africa

MTN Group has settled US$300-million (R5.2-billion) in Eurobonds that were due in 2024 early, helping deleverage its balance sheet.

The early repayment brings MTN’s dollar-denominated debt down to 35% of total holding company debt (on a first-half 2022 proforma basis), the group said on Monday.

In late August, MTN invited eligible holders of the $750-million Eurobond – due to mature in November 2024 – to tender their notes for purchase by the company for cash.

“The offer attracted tenders of more than $482-million, significantly more than the $250-million originally intended for early settlement,’ MTN said. “As a result, MTN raised the final acceptance amount to $300-million, which will be settled on 6 September 2022.”

“In line with our Ambition 2025 strategy, we are committed to deleveraging the balance sheet faster in line with our capital allocation framework,” said MTN Group CEO Ralph Mupita in a statement. “This week’s early settlement supports delivery of this commitment as well as of the execution and delivery of our medium-term guidance to maintain the holding company leverage below 1.5 times.”

MTN Group chief financial officer Tsholofelo Molefe said that as the settlement would be funded from available cash balances, it did not affect the pro forma holding company leverage of 0.8x at 30 June 2022. “However, on a pro forma basis, the settlement improves the end-June 2022 ratio of non-rand-to-rand debt to 35:65 from the 42:58 ratio reported in the group’s interim results.”

At end-December 2021, the holding company leverage was 1.0x. The improvement in the first half of 2022 to 0.8x was boosted by the repatriation of R9.4-billion in cash from operating companies, including R4.5-billion from MTN Nigeria, the group said.

Source: Techcentral

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