MTN Group to cut down on 2020 spending due to Covid-19 pandemic
South Africa’s MTN Group Ltd, the South African parent company of MTN Nigeria, has said it will make a reduction in spending plans for the year due to the economic uncertainties occasioned by the Coronavirus pandemic.
In a statement, the Africa leading telco said it will only invest between R21 to R22 billion, as against an earlier plan to invest as much as R28.3 billion this year. The statement also revealed that telco would be sticking to its medium-term growth forecast.
However, MTN’s decision to cut down on CAPEX is coming against the backdrop of a remarkable first quarter 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%”.
Since the outbreak of the coronavirus disease, telecoms operators like MTN have continued to benefit from the lockdown necessitated by the pandemic even as the increasing demand for data has seen more people resort to working, shopping, schooling and socializing remotely from home.
Demands for data have quadrupled in MTN dominated markets like Nigeria, Ghana, and South Africa since the Covid-19 lockdown in Africa.
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