MTN a major investment opportunity

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Despite recent headwinds, MTN remains well-positioned to capitalise on economic growth across Africa, says Old Mutual Wealth’s Victor Mupunga.

MTN provides a compelling investment opportunity at its current valuation, given its position to benefit from increased economic growth across Africa, strong balance sheet, and plans to reduce its sensitivity to foreign exchange rates.

The company’s EBITDA in South Africa was up 4.3%, but a 68.3% decline in Nigeria saw group EBITDA fall by 41.2%. “Notwithstanding the current tough macro environment, the respectable operational performance gives us confidence that the group remains well-positioned to deliver solid returns once the macro headwinds abate.”

This figure includes the previously delayed 2023 dividend from Nigeria, which speaks to early signs of stabilisation accessing foreign currency within the country. Mupunga also expects the company to benefit immensely from its growing fintech offering in key markets, with Nigeria providing a significant opportunity.

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Fonte: TechCentral - 🏆 8. / 71 Leggi di più »