Economic uncertainties: MTN Group cut down on spending plans for 2020

May 14, 2020
39 Views

South Africa’s MTN Group Ltd (the parent company of MTN Nigeria) said it will cut down on spending plans for the year due to the economic uncertainties created by the Coronavirus pandemic.

In specific terms, the telecoms giant will only invest between R21 to R22 billion, as against an earlier plan to invest as much as R28.3 billion this year. According to Bloomberg, the telco is sticking to its medium-term growth forecast.

Meanwhile, in a statement released earlier today by MTN Group Ltd, the President and Chief Executive Officer, Rob Shuter was quoted to have said the group would continue to focus on business continuity and efficiency, and have implemented strict measures to preserve resources and strengthen its resilience.

“The COVID-19 situation is an evolving one and will undoubtedly impact the year ahead. Given the uncertainties associated with the duration and economic impact of the pandemic, it is difficult to reliably quantify the direct and indirect financial impacts on the business at this early stage.”

Interestingly, MTN’s decision to cut down on CAPEX is coming in the heels of an impressive Q1 result. The company’s revenue for the first quarter grew by 11%, even as 6.6 million new subscribers joined the network across the markets where MTN operates; including Nigeria. Similarly, MTN Group’s EBITDA for Q1 2020 “widened overall to 43%”.

In the meantime, telecoms operators like MTN have continued to benefit from the pandemic, thanks to increasing demand for data as more people resort to remote working, e-learning, and e-commerce. For MTN Group, data demands have been surging in Nigeria, Ghana, and South Africa since February ending.

You may be interested

BREAKING: Court Orders Arrest of Maina’s Son
News
9 views
News
9 views

BREAKING: Court Orders Arrest of Maina’s Son

Webby - November 24, 2020

Faisal A Federal High court has ordered the arrest of Faisal Maina, the son of Abdulrasheed Maina. The Court in…

‘You Are A Disgrace. Both Home And Abroad’ – Adesua Etomi-Wellington Lambasts Lauretta Onochie
News
5 views
News
5 views

‘You Are A Disgrace. Both Home And Abroad’ – Adesua Etomi-Wellington Lambasts Lauretta Onochie

Webby - November 24, 2020

Adesua Etomi-Wellington, Lauretta Onochie Nollywood actress, Adesua Etomi-Wellington hit hard on Tuesday morning, November 24, after seeing a photo shared…

“My Wife Sleeps With Our Pastor, Church Elder” – Man Cries Out In Court
News
11 views
News
11 views

“My Wife Sleeps With Our Pastor, Church Elder” – Man Cries Out In Court

Webby - November 24, 2020

File photo A man's marriage has been dissolved after he approached a court in Ibadan to narrate how his wife…

Leave a Comment

Your email address will not be published.