Investment idea: MTN
4In this report, we look at the key takeaways from MTN's full-year 2023 results:
o Top line was on par with management expectations, but cost inflation was elevated in this period from various Opcos weighing in on margins.
o Blended inflation of 16.7% in 2023 compared to 15.1% in 2022.
o EBITDA growth (+9.8% y/y) is trending ahead of expectations.
o The balance sheet remains robust. Group net debt/EBITDA at the holding company (Holdco) level held firm at 0.4x (31 December 2023 :0.3x).
o Has a strong Holdco liquidity position at the end of the 2023 fiscal year, with R44.1 billion in committed facilities and cash.
o The successful sale of MTN Afghanistan to Investcom AF Limited on 21 February 2024.
o The board declared a dividend of 330 cents per share for FY23.
Our research supports a buy recommendation.