The MTN Group Limited (JSE:MTN) is the biggest mobile network operator in South Africa. The group’s share price has increased 18.73% in the past three months, while its earnings per share (EPS) have increased 7.1% per year over the last three years.
Despite macroeconomic headwinds—the devaluation of the Nigerian naira, a weakened US dollar, and the ongoing conflict in Sudan—MTN remains well-positioned to deliver solid returns for the rest of 2024.
MTN Share Price (JSE) Data and Analysis
The group is listed as MTN on the Johannesburg Stock Exchange with a market capitalization of ZAR 173.352 billion.
The current price range is R 88.97 – 92.55, and earnings per share (EPS-TTM) clocked at R 311.03.
Please refer to the table below for current data.
| Market capitalization | 173,352,817,736 |
| Price range | 88.97 – R92.55 |
| ESP-TTM | 311.02 |
| Dividend yield | 3.59% |
| Authorized shares | 2.5 million |
| Issued shares | 1.88 million |
MTN Group Share Price: On the Road to Recovery
Despite the prevalence of blue-sky investing, experienced investors still adopt a traditional strategy – buying shares in profitable companies like the MTN Group.
Established in 1994, or what is considered the “dawn of democracy” in South Africa, MTN now has 289.1 million active data subscribers. Additionally, MTN was the first network operator to launch a public 5G network in the region in 2020.
What went wrong
It is perfectly understandable for the most profitable companies to have bad years sometimes. The group’s share was down 32% in the last three years and shed ZAR 14 billion from its value by August 2024.
Last year, MTN Nigeria—its biggest client base—experienced a 68.3% decline in its earnings before interest, taxes, depreciation, and amortization (EBITDA) due to the naira devaluation, which caused the Group’s EBITDA to fall by 41.2%.
Large and profitable companies can lose money sometimes, especially if it’s due to uncontrollable macroeconomic headwinds. However, what should stand out is the company strategy moving forward.
What the group is doing right
Despite the drawbacks, MTN is well-positioned to deliver solid returns before the end of 2024.
Their broader market grew 18% in the last year, noting new significant contributions from South Africa, Ghana, and Uganda.
Furthermore, total annual subscribers grew to 9.8% to 288 million, and active data subscribers grew by 9.2% to 150.2 million.
Because of the unstable Nigerian economy, MTN will reduce its reliance on earnings from Nigeria and sell non-core assets. Instead, it will focus on growing its market across Africa.
Another positive is that group earnings per share (EPS) grew by 7.1% in the last three years, showing an upward trend.
Insiders have also increased their shares to R230 million. This accounts for only 0.1% of the group, but still a considerable amount considering the company’s magnitude. Bigger insider shares may indicate enthusiasm for growth.
MTN: A compelling investment
The group is well-placed to grow its market share in key regions, where it already has leading positions.
Analysts recommend a BUY while share prices are not at their peak, but EPS is on an upward trend.
MTN shares prove to be a compelling investment opportunity at its current valuation. Likewise, further research and consultation are recommended for future investors.
MTN Zakhele Futhi
The MTN Zakhele Futhi is a Black Economic Empowerment (BEE) share scheme implemented by MTN in 2016. It is listed as RF on the Johannesburg Stock Exchange (JSE:RF). It holds 4% equity in the group with a market capitalization of R9.9 billion.
BEE is a 2003 policy by the South African government that aims for broader participation in the economy by black people.
The group said RF will allow historically disadvantaged individuals to participate in the “economic mainstream.”
The scheme is open to Black, Colored, and Indian South African citizens by birth or descent. Qualified participants can subscribe for and own shares for a minimum investment of R2,000. However, their investments will be locked in for three years before they can sell to other qualifying participants.
MTN Zakethe Futhi is scheduled to run until 2027.
What is the MTN Zakhele Futhi share price today?
RF is listed with 300,000,000 authorized shares selling at a range of R8.04 – 8.10 per share – disappointingly 93.2% lower than its original price of R102.8.
RF released its financial report for the six months ended June 30, 2024. The report revealed uncertainty about the share’s liquidity for the upcoming year because of its heavy reliance on its parent organization.
Note that RF’s financial performance is based entirely on the group’s share price.
Is it worth investing in?
Shares are open to Black, Colored, and Indian South African citizens by birth or descent. The scheme was originally launched to empower black investors to freely trade shares after three years of investment.
However, current stats show us the BEE scheme’s freefall in value.
Despite its parent company, MTN, on an upward trend, Zakhele does not seem to follow suit.
About MTN Group
MTN is Africa’s largest mobile network provider and has key segments in South Africa, Nigeria, South and East Africa, West and Central Africa, the Middle East, and North Africa regions.
It also provides remittances, mobile wallets, microloans, and microinsurance services.
Its Headquarters are at 14th Avenue, Fairland, Roodepoort, South Africa, and can be contacted at +27 (11) 9123000.
