By TechThop Team
Posted on: 12 Aug, 2022
A $35 million binding offer has been made for MTN Group's Afghanistan business, nearing an exit from the Middle East. MTN Group's first-half earnings rose 46.5%, and it received a $35 million binding offer for its Afghan business.
The Group CEO Ralph Mupita spoke to journalists on a news call on March 29 about the gross amount for the transaction being $35 million over some time, with proceeds of $31 million being received. He did not disclose the buyer.
With the completion of the deal, MTN will have exited Middle Eastern markets after selling MTN Yemen and abandoning MTN Syria last year. Irancell's 49% financial investment will continue to be managed within MTN's portfolio.
The MTN Group announced the exit of its Middle East operations in 2020, to focus on its core African operations, as part of its ongoing efforts to simplify its structure and lessen its exposure to riskier markets worldwide.
In the six months ended June 30, MTN reported headline earnings per share, the main measure of profitability in South Africa, of 567 cents, up from 387 cents a year earlier. The company operates in 19 markets around the world.
As a result of higher demand for data services among subscribers, MTN South Africa saw its revenue increase by 4.1%, while MTN Nigeria saw its revenue grow by 19.9%, and MTN Ghana saw its revenue rise by 29.3%.
There was a 14.2% increase in active subscribers, which was reflected in a 25.5% jump in usage, which was reflected in a 14.2% increase in active subscribers. There was an increase of 35.9% in the revenue generated from data.
The financial constraints of South Africans led them to substitute data calls for voice calls, which resulted in a 1.9% increase in the revenue from voice calls A record amount of fintech revenue was generated in that period, driven by a deliberate decision to lower peer-to-peer pricing as well as the enforcement of new fintech taxes and levies in some markets, such as Ghana.
The company said it had lowered its prices to reduce the burden on customers, which in turn had an impact on how much the customer paid for those transactions.
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