MTN announced that it has raised its medium-term revenue targets and announced plans to sell at least 15 billion rand worth of assets to reduce debt.
The Chief Executive Officer of MTN, Rob Shuter noted that after revenues accelerated in the year to end-December, the group decided to raise its guidance for service-revenue growth from high single digits to double-digit growth.
Shuter also noted that the company is targeting a return-on-equity ratio of above 20 percent, from 11.5 percent in 2018. Moreover, MTN planned “asset realisations” of at least 15 billion rand over the next three years, excluding any proceeds it may get from its 23 billion rand investment in tower company IHS.
The CEO noted MTN would sell its 53 percent stake in Mascom Wireless Botswana to Econet for $300 million (4.3 billion rand) as it did not have control over that asset. The group also said it would look to offload nonmobile assets such as its investments in tower companies and e-commerce ventures.
MTN said its subscriber base rose by 16 million customers to 233 million, as service revenues grew 10.7 percent, from 7.2 percent growth in 2017.