Half Year MTN Group Ltd Earnings Call

August 24, 2026

[Video Narrator]: At dawn, a farmer sends a message. By midday, a student joins an online class. At dusk, a trader secures a deal. Every moment across Africa, people connect. Connection ignites clarity. It slices through noise, erases distances, sparks ideas into action. Connection fuels resilience. It keeps businesses running, students learning, families close, communities thriving, no matter the challenge. Connection drives speed because opportunity doesn't wait. Decisions are made in real-time. Transactions happen in an instant. Progress moves at the pace of now. From 1994, we've pursued one mission: to empower everyone, everywhere with the benefits of a modern, connected life. To drive Africa forward by giving a voice to the unheard, putting the internet into everyone's hands. To empower the unbanked, open doors to commerce, and reshape industries that transform realities.

Speaker #1: At dawn, a farmer sends a message. By midday, a student joins an online class. At dusk, a trader secures a deal. Every moment, across Africa, people connect.

Speaker #1: Connection ignites clarity. It slices through noise, erases distances, and sparks ideas into action. Connection fuels resilience. It keeps businesses running, students learning, and families close. Communities thrive, no matter the challenge.

Speaker #1: Connection drives speed, because opportunity doesn't wait. Decisions are made in real time. Transactions happen in an instant. Progress moves at the pace of now.

Speaker #1: Since 1994, we've pursued one mission: to empower everyone, everywhere, with the benefits of a modern, connected life—to drive Africa forward by giving a voice to the unheard.

Speaker #1: Putting the internet into everyone's hands—to empower the unbanked, open doors to commerce, and reshape industries that transform reality. From a single nation to an entire continent, we have become part of everyday life, woven into the fabric of culture.

[Video Narrator]: From a single nation to an entire continent, we have become part of everyday life, woven into the fabric of culture. We are everywhere you go because progress isn't just about technology. It's about people. People who dream, build. People who push forward, no matter the odds. Because when people move, Africa moves forward. The journey is bold, and it's just the beginning. Africa's story is still being written. Together, we shape the next chapter, unlocking growth and delivering returns.

Speaker #1: We are everywhere you go, because progress isn't just about technology; it's about people. People who dream, people who build, people who push forward no matter the odds. Because when people move, Africa moves forward.

Speaker #1: The journey is bold, and it's just the beginning. Africa's story is still being written. Together, we shape the next chapter—unlocking growth and delivering returns.

Speaker #2: Good afternoon, everyone, and welcome. It's my pleasure to welcome you to our interim results for the half year ended 30 June 2026.

[Company Representative] (MTN Group): Good afternoon, everyone, and welcome. It's my pleasure to welcome you to our interim results for the year and for the six months ended 30 June 2026. A warm welcome to everybody here in the room at MTN Innovation Centre, including all the members of our investment community and the media. I also would like to welcome members of ExCo and any board members who've come. We also welcome everyone joining us remotely, as well as all the MTN colleagues across our markets. Before we begin, let me cover a few housekeeping points. First, our standard disclaimer and safe harbor statement is displayed on our screen now. There you have it. It applies to today's presentation. For those physically in the room, just in case of emergency, understand that is one exit and the other is on my right. For connectivity, the Wi-Fi details are now displayed on screen.

Roy Mutooni: Good afternoon, everyone, and welcome. It's my pleasure to welcome you to our interim results for the year and for the six months ended 30 June 2026. A warm welcome to everybody here in the room at MTN Innovation Centre, including all the members of our investment community and the media. I also would like to welcome members of ExCo and any board members who've come. We also welcome everyone joining us remotely, as well as all the MTN colleagues across our markets. Before we begin, let me cover a few housekeeping points. First, our standard disclaimer and safe harbor statement is displayed on our screen now. There you have it. It applies to today's presentation. For those physically in the room, just in case of emergency, understand that is one exit and the other is on my right. For connectivity, the Wi-Fi details are now displayed on screen.

Speaker #2: A warm welcome to everybody here in the room at the MTN Innovation Center, including all the members of our investment community and the media. I would also like to welcome members of Exco and any board members who have come.

Speaker #2: We also welcome everyone joining us remotely, as well as all the MTN colleagues across our markets. Before we begin, let me cover a few housekeeping points.

Speaker #2: First, our standard disclaimer and safe harbor statement is displayed on our screen. Now, there you have it, and it applies to today's presentation. For those physically in the room, just for your information, in case of emergency, understand that there is one exit, and the other is on my right.

Speaker #2: For connectivity, the Wi-Fi details are now displayed on screen. I'll just pause a little to let you capture them. If you plan to share updates online, please use #MTNInterims.

[Company Representative] (MTN Group): I'll just pause a little to let you capture them. If you plan to share updates online, please use #MTNinterims and tag our corporate accounts, @MTNGroup on X and @MTN on LinkedIn. A QR code for the whole results booklet is also displayed on screen for easy access. Finally, following this presentation, all guests in the room are invited to join us for cocktails and continue the conversation outside in the auditorium. Our agenda for today will begin with an operational and strategic review, followed by the group's financial performance. We will then open the floor for questions. A reminder for all those on the webcast to please submit your questions through the platform, and we will read them from there and try to answer them. That brings us to the start of today's presentation.

Roy Mutooni: I'll just pause a little to let you capture them. If you plan to share updates online, please use #MTNinterims and tag our corporate accounts, @MTNGroup on X and @MTN on LinkedIn. A QR code for the whole results booklet is also displayed on screen for easy access. Finally, following this presentation, all guests in the room are invited to join us for cocktails and continue the conversation outside in the auditorium. Our agenda for today will begin with an operational and strategic review, followed by the group's financial performance. We will then open the floor for questions. A reminder for all those on the webcast to please submit your questions through the platform, and we will read them from there and try to answer them. That brings us to the start of today's presentation.

Speaker #2: And tag our corporate accounts @MTNGroupOnX and @MTNOnLinkedIn. A QR code for the whole results booklet is also displayed on screen for easy access. And finally, following this presentation, all guests in the room are invited to join us for cocktails and to continue the conversation outside in the auditorium.

Speaker #2: Our agenda for today will begin with an operational and strategic review, followed by the Group's financial performance. We will then open the floor for questions.

Speaker #2: A reminder for all those on the webcast to please submit your questions through the platform, and we will read them from there and try to answer them.

Speaker #2: That brings us to the start of today's presentation. It is now my pleasure to invite the MTN Group President and CEO, Ralph Mupita, to the stage.

[Company Representative] (MTN Group): It is now my pleasure to invite the MTN Group President and CEO, Ralph Mupita, to stage.

Roy Mutooni: It is now my pleasure to invite the MTN Group President and CEO, Ralph Mupita, to stage.

Speaker #3: Roy, thanks very much. And extending my own welcome to all of you who have joined us here at the head office campus on 14th Avenue.

Ralph Mupita: Roy, thanks very much, and extending my own welcome to all of you who have joined us here at our head office campus at 14th Avenue. We have some shareholders and board of stakeholders who are here. Also to extend a welcome to all the stakeholders joining us on the various virtual platforms and to the MTNers across our 19 markets. You have delivered the results that we have the pleasure of showcasing to our stakeholders more broadly. Over the next 45 minutes, we intend to take you through, as Roy has mentioned, the highlights, operational strategic review, financial overview, and then the outlook and priorities that we have for the H2 of the year. Tsholofelo Molefe, our group CFO, is not with us today. She has had a bereavement in the family.

Speaker #3: We have some shareholders and broader stakeholders who are here, and I would also like to extend a welcome to all the stakeholders joining us on the various virtual platforms.

Speaker #3: And to the MTNers across our 19 markets, you have delivered the results that we have the pleasure of showcasing to our stakeholders more broadly.

Speaker #3: And so, over the next 45 minutes, we intend to take you through, as Roy has mentioned, the highlights, operational and strategic review, financial overview, and then the outlook and priorities that we have for the second half of the year.

Speaker #3: Sulu, Tsholofelo Molefe, our Group CFO, is not with us today. She's had a bereavement in the family—she lost her brother pretty recently—and we're wishing her all the best during this difficult time, to her and her family. I'll be presenting the financial overview that she would have ordinarily presented, and the numbers that I'll take you through are those that she and her team produced.

Ralph Mupita: She lost her brother pretty recently, and we are wishing her all the best during this difficult time to her and her family. I will be presenting the financial overview that she would have ordinarily presented, and the numbers that I will take you through will be those that she and her team produced. Going straight into the highlights, we have six key messages that we would like board of stakeholders to take away from the results. We trust that you have had the opportunity to read our SENS document since we released it early this morning. The first message is that we have had very strong commercial momentum that has translated into strong growth and solid profitability. The results are broad-based.

Speaker #3: So, going straight into the highlights, we've got six key messages that we would like broader stakeholders to take away from the results. We trust that you've had the opportunity to read our SENS document since we released it.

Speaker #3: Earlier this morning, the first message is that we've had very strong commercial momentum that's translated into strong growth and solid profitability. The results are broad-based—Nigeria, Ghana—continuing to deliver very strongly.

Ralph Mupita: Nigeria, Ghana continue to deliver very strongly, but we have seen a good performance improvement, particularly for markets such as Côte d'Ivoire, Cameroon, and Uganda have remained very resilient, and I will take you through the picture of where the performance is coming from. The second is that the financial results have been pretty strong. The top line, when you look at it in constant currency basis, has grown 17.5% inside our medium-term guidance range. We have seen EBITDA expanding more significantly than service revenue growth. The EBITDA margin that is reported at the end of the half is the strongest that we have seen, certainly since around 2012, adjusting for accounting changes, IFRS 17 and IFRS 16. Broadly, this is the highest that we have achieved in over a decade.

Speaker #3: But we've seen a good performance improvement, particularly from markets such as Côte d'Ivoire, Cameroon, and Uganda, which have remained very resilient. And I'll take you through the picture of where the performance is coming from.

Speaker #3: The second is that the financial results have been pretty strong. The top line, when you look at it on a constant currency basis, has grown 17.5%.

Speaker #3: Inside our medium-term guidance range, we've seen EBITDA expanding more significantly than service revenue growth. And the EBITDA margin that is reported at the end of the half is the strongest that we've seen, certainly since around 2012, adjusting for accounting changes IFRS 17 and IFRS 16.

Speaker #3: Broadly, this is the highest that we've achieved in over a decade. The third is really the story around FinTech-reported service revenue below our guidance.

Ralph Mupita: The third is really the story around fintech reported service revenue below our guidance. There are three non-operating factors that have impacted the results that we have seen at just on 13.3%. I will take you through that detail of those three non-operating impacts. If you strip those out, the growth will be much closer to 19.3%. What is pleasing on the fintech side is that we are seeing the ecosystem continue to be very strong. Transaction values are up over a third, close on to $331 billion of transaction value going through our network over the period. Advanced services, which we see as the future-proof services to our customers, continue to accelerate over 30%, 32% to be exact. The fourth message is really about earnings, returns, and the equity free cash flow growth.

Speaker #3: And there are three non-operating factors that have impacted the results that we've seen at just on 13.3%. I'll take you through the details of those three non-operating impacts.

Speaker #3: And if you strip those out, the growth will be much closer to 19.3%. What is pleasing on the fintech side is that we're seeing the ecosystem continue to be very strong.

Speaker #3: So, transaction values are up over a third, close on to $331 billion of transaction value going through our network over the period. And advanced services, which we see as future-proof services to our customers, continue to accelerate—over 30%, 32% to be exact.

Speaker #3: The fourth message is really about earnings returns and the equity free cash flow growth. I'll take you through a bridge view on the drivers between basic EPS and adjusted headline earnings per share.

Ralph Mupita: I will take you through a bridge view on the drivers between basic EPS to adjusted headline earnings per share. The adjusted headline earnings per share, which were up 21.3%, showed the underlying earnings momentum in the business. We saw also a very strong expansion on return on capital employed. We ended off the year, last year, just on 27.1% and we are closing the period for the first six months of the year at 31.5%. The equity free cash flow, which underpins our shareholder remuneration framework, grew a pleasing 32.7%. When we look at the cash flow bridge, we will show you the quality of cash flow as well as cash conversion. The fifth message is we are seeing good progress on the IHS transaction, quite a complex transaction to get over the line. We have had to see disposal of the LatAm assets.

Speaker #3: The adjusted headline earnings per share, which were up 21.3%, showed the underlying earnings momentum in the business. We also saw very strong expansion in return on capital employed.

Speaker #3: We ended off the year last year just on 27.1, and we're re-closing the period for the first six months of the year at 31.5.

Speaker #3: The equity free cash flow, which underpins our shareholder remuneration framework, grew a pleasing 32.7%. And when we look at the cash flow bridge, we'll show you the quality of cash flow as well as cash conversion.

Speaker #3: The fifth message is we're seeing good progress on the IHS transaction, quite a complex transaction. To get over the line, we've had to see disposal of the latter assets.

Speaker #3: There are tower companies in both Brazil and Colombia which have been disposed of, and those cash proceeds have been rolled up to the group.

Ralph Mupita: There are tower companies in both Brazil and Colombia which have been disposed of, and those cash proceeds have been rolled up to the group. There has also been the sale of the fiber business to TIM in Brazil. Again, those cash proceeds are part of the funding structure for the transaction. We saw also the EGM successfully held on 4 August, and we are now going through the various regulatory approvals. One of the key regulatory approvals we called out with our results was the competition authorities in Nigeria, FCCPC, where we have concluded our engagements with them, and we have secured conditional approval.

Speaker #3: And there's also been the sale of the fiber business to TIM in Brazil. And again, those cash proceeds are part of the funding structure for the transaction. We also saw the EGM successfully held on the 4th of August.

Speaker #3: And we're now going through the various regulatory approvals. One of the key regulatory approvals we called out with our results was the competition authority in Nigeria, the FCCPC, where we've concluded our engagements with them.

Speaker #3: And we have secured conditional approval. One of the key terms of the conditional approval is that we are going to do a further selldown of up to 30% to local Nigerian investors on a commercial, arm's length basis, subject to market conditions.

Ralph Mupita: One of the key terms of the conditional approval is that we are going to do a further sell down of up to 30% to local Nigerian investors on a commercial arm's length basis, subject to market conditions. Any of the proceeds from that will be used to pay down the debt stack that is in IHS. We will give you a bit more detail on that. The sixth message is really around the share buyback program. We announced the share buyback as part of the shareholder remuneration framework, a composite of cash and share buybacks. The share buyback program, over a three-year period, has a target of ZAR 6 billion equivalent, where we will repurchase the shares and cancel them on acquisition. That has commenced with going into the open period.

Speaker #3: And any of the proceeds from that will be used to pay down the debt stack that's in IHS. We'll give you a bit more detail on that.

Speaker #3: The sixth message is really around the share buyback program. We announced the share buyback as part of the shareholder remuneration framework, a composite of cash and share buybacks.

Speaker #3: And the share buyback program, over a three-year period, has a target of R6 billion, where we'll repurchase the shares and cancel them upon acquisition.

Speaker #3: So that’s commenced with the opening of going into the open period. And we’re also reaffirming the medium-term guidance. We’ll give you some color on how we’re thinking about Nigeria, which is giving us confidence—particularly when we saw the market reaction to the Nigeria results.

Ralph Mupita: And we are also reaffirming the medium-term guidance, and we will give you some color on how we are thinking about Nigeria giving us the confidence, particularly when we saw the market reaction towards the Nigeria results, and I will cover that a little bit later. Just a little bit on the macro conditions that we operated in, a couple of key messages. They were fairly supportive in the period. We saw inflation coming down. When you think about the H1 last year, inflation was more around 14%. That is just slightly over 9% on a blended basis across our markets. Our two major currencies, both the naira and the rand, fairly stable in the period. What does create an effect to our reported results is that the rest of African OpCos were weaker against the South African rand in the period.

Speaker #3: And I'll cover that a little bit later. So just a little bit on the macro conditions that we operated in—a couple of key messages.

Speaker #3: They were fairly supportive in the period. We saw inflation coming down. So, when you think about the half year last year, inflation was more around 14%.

Speaker #3: That's just slightly over 9% on a blended basis across our markets. Our two major currencies, both the Naira and the Rand, were fairly stable in the period.

Speaker #3: What does create an effect to our reported results is that the rest of African opcos were weaker against the South African rand in the period.

Speaker #3: We make a callout also that the growth prospects, as referenced by the real GDP outlook, continue to be fairly robust. So this gives us the confidence that the underlying demand we see across our markets will translate into strong financial results.

Ralph Mupita: We make a call-out also that the growth prospects, as referenced by real GDP outlook, they continue to be fairly robust. This is giving us the confidence that the underlying demand that we see across our markets will translate into strong financial results. When we look at the commercial momentum that we see in the business that I spoke about, what are some of the key indicators? We saw the subscriber base grow to just shy of 318 million subscribers served across our market. That is a growth of about just under 7%. Active data subscribers grew much faster as we saw more and more of our customers using data service on a more regular basis. And that you can see in the very strong data traffic that we would have seen across our markets, 14,338 petabytes of data traffic coming through our network.

Speaker #3: So, when we look at the commercial momentum that we see in the business that I spoke about, what are some of the key indicators?

Speaker #3: We saw the subscriber base grow to just shy of 318 million subscribers served across our markets. That's a growth of just under 7%.

Speaker #3: Active data subscribers grew much faster, as we saw more and more of our customers using data services on a more regular basis. That is evident in the very strong data traffic we have seen across our markets.

Speaker #3: 14,338 petabytes of data traffic coming through our network. On the fintech side, we've just gone slightly under 71 million monthly active users. The fintech ecosystem continues to be strong.

Ralph Mupita: On the fintech side, we have just gone slightly under 71 million monthly active users. The fintech ecosystem continues to be strong. 13 billion transactions by volume across the period. By value, $330.5 billion equivalent, having grown by almost a third in the period. Where is this growth coming from? This is another way of looking at what are the drivers of growth, subscribers, active data users, and our fintech monthly active users. What you can see in this picture is that there is a broad-based contribution towards the growth. Subscribers in the period, part of the growth we saw, Nigeria, you see there on the screen, 7.5 million, but you also see that Ghana is growing. South Africa is flat, and then you see SEA and the Francophone markets also contributing to growth. This is a portfolio that is delivering the growth.

Speaker #3: 13 billion transactions by volume across the period, with a value equivalent to $330.5 billion, having grown by almost a third in the period. So, where is this growth coming from?

Speaker #3: So this is another way of looking at what are the drivers of growth: subscribers, active data users, and our Fintech monthly active users. So what you can see in this picture is that there's a broad-based contribution towards the growth.

Speaker #3: Subscribers in the period, part of the growth we saw—Nigeria, you see there on the screen, seven and a half million. But you also see that Ghana is growing.

Speaker #3: South Africa is flat, and then you see Sierra and the Francophone markets also contributing to growth. So, this is a portfolio that is delivering the growth.

Speaker #3: Some of the markets are much more mature, like South Africa; some are more nascent. That gives us confidence that we'll still see strong runway for growth.

Ralph Mupita: Some of the markets are much more mature, like South Africa, some more nascent, and give us a confidence that we will still see strong runway for growth. How does this translate into the financials? Looking at the financial contribution from growth, earnings, balance sheet, and returns. As I mentioned, service revenue is 17.5%. What is really driving that data? When you look at data growth now, it is pretty much close to 50% of service revenue across our markets is data. It grew by 29.2%. I will show you later that voice is actually still fairly resilient in some of our markets, particularly if you look at markets ex-SA. But the big driver of growth is increasing data usage across our markets. Earnings, very strong growth and contribution. These are KPIs I have mentioned. The balance sheets remain strong and resilient. We have got very low group leverage of 0.3 times.

Speaker #3: So how does this translate into the financials? Looking at the financial contributions from growth, earnings, balance sheet, and returns. As I mentioned, service revenue—17 and a half—what's really driving that data?

Speaker #3: When you look at data growth now, it's pretty much close to 50% of service revenue across our markets—data. It grew by 29.2%.

Ralph Mupita: When you look at data growth now, it is pretty much close to 50% of service revenue across our markets is data. It grew by 29.2%. I will show you later that voice is actually still fairly resilient in some of our markets, particularly if you look at markets ex-SA. But the big driver of growth is increasing data usage across our markets. Earnings, very strong growth and contribution. These are KPIs I have mentioned. The balance sheets remain strong and resilient. We have got very low group leverage of 0.3 times.

Speaker #3: I'll show you later that voice is actually still fairly resilient in some of our markets—particularly if you look at markets like XSA. But the big driver of growth is increasing data usage across our markets.

Speaker #3: Earnings: very strong growth and contribution. These are KPIs I've mentioned. The balance sheet remains strong and resilient. We've got very low group leverage at 0.3 times.

Speaker #3: The debt mix has improved considerably. We have an outstanding Eurobond of $500 million, which is due in October of this year. And we're well arranged to deal with that maturity, as well as financing the IHS acquisition.

Ralph Mupita: The debt mix has improved considerably. We have an outstanding Eurobond of $500 million, which is due in October of this year, and we are well arranged to deal with that maturity, as well as financing the IHS acquisition. That debt mix is very pleasing, giving us shock absorbency capacity, and the liquidity headroom has remained well above what we see as the minimum that we would want to see in the business. On the return side, the cash flow metrics all growing very strongly. As I said, reporting a nice jump in returns on capital employed over the period. Let us have a look at the operational review, looking at our key markets, starting with South Africa. I think South Africa is a tale of two halves. We have seen very good growth on postpaid, enterprise, and wholesale. All these businesses growing well above inflation.

Speaker #3: So that debt mix is very pleasing, giving us shock absorbance capacity, and the liquidity headroom has remained well above what we see as the minimum that we'd want to see in the business.

Speaker #3: On the return side, the cash flow metrics are all growing very strongly. And as I said, reporting a nice jump in returns on capital employed over the period.

Speaker #3: So, let us have a look at the operational review, looking at our key markets, starting with South Africa. I think South Africa is a tale of two halves.

Speaker #3: We've seen very good growth in postpaid, enterprise, and wholesale. All these businesses are growing well above inflation. The big drag on overall growth has been prepaid.

Ralph Mupita: The big drag on overall growth has been prepaid. Within prepaid, one has to decompose it. You look at prepaid data, that has grown above inflation. You can see that in the chart on the left-hand side, we are starting to see a re-acceleration on prepaid data. The major drag is really around voice. We have, as we communicated with our full-year results of last year, that we are on a deliberate reset to improve the quality of prepaid growth. We want growth that is less dependent on airtime advance. So we have pulled back quite sharply the extension of airtime advance into the prepaid base in South Africa. That used to be about 42%. It is now in the low 30s. We have stabilized the amount of that into the market. We have seen improving repayment rates within the month.

Speaker #3: Now, within prepaid, one has to decompose it. You look at prepaid data—that has grown above inflation. And you can see that in the chart on the left-hand side.

Speaker #3: We're starting to see a re-acceleration on prepaid data. The major drag is really around voice. We have as we communicated with our results, full year results of last year, that we are on a deliberate reset to improve the quality of prepaid growth.

Speaker #3: We want growth that is less dependent on airtime advance. So we've pulled back quite sharply the extension of airtime advance into the prepaid base in South Africa.

Speaker #3: That used to be about 42%. It's now in the low 30s. We've stabilized the amount of that into the market. We've seen improving repayment rates within the month.

Speaker #3: October last year would have been saying it’s 50, it’s now up to 70. And with that deliberateness of pulling back the airtime advance, it does have an outsized effect.

Ralph Mupita: October last year would have been saying it is 50, it is now up to 70. With that deliberateness of pulling back the airtime advance, it does have an outside effect on voice. Voice is more strongly correlated in the prepaid base to airtime advances. We think that this is the right set of actions to improve the quality of that base. There are other actions that we have taken around product simplification, and those are ongoing. On the channel mix side, starting to do more direct integration with the banks. There are also working capital positive effects of that, and that is ongoing. The reset is continuing, and as we move into the H2 of the year, particularly focused on a recovery in prepaid voice, we should start to see getting us back into growth for the full prepaid segment.

Speaker #3: On voice, voice is more strongly correlated in the prepaid base to airtime advances, and we think that this is the right set of actions to improve the quality of that base.

Speaker #3: There are other actions that we've taken around product simplification, and those are ongoing. On the channel mix side, we're starting to do more direct integration with the banks.

Speaker #3: There are also kind of working capital positive effects from that, and that is ongoing. So the reset is continuing, and as we move into the second half of the year, particularly focused on a recovery in prepaid voice, we should start to see this getting us back into growth for the full prepaid segment.

Speaker #3: Moving on to Nigeria. Just a couple of key messages—Carl and the team reported results a few weeks ago. We saw very strong growth on the net addition side.

Ralph Mupita: Moving on to Nigeria, just a couple of key messages. Colin, the team reported results a few weeks ago. Very strong growth on the net addition side. Data usage is pretty strong all around. The market conditions in Nigeria were characterized by a pretty stable naira, improved liquidity. The liquidity at the exchange rates that is prevailing does not present us with much difficulties. We have seen inflation moderating during the period. But of course, the big call-out in the period was that there were higher global oil prices, which translates into higher diesel price. Our network in Nigeria is 95% on diesel generators, 5% on the grid. So diesel prices have flowed through into our cost structures. Just over 30% of OpEx within Nigeria is energy prices, and that is substantially diesel.

Speaker #3: Data usage is pretty strong all around. The market conditions in Nigeria were characterized by a pretty stable naira and improved liquidity. The liquidity at the exchange rates that are prevailing does not present us with much difficulty.

Speaker #3: We've seen inflation moderating during the period. But of course, the big callout in the period was that there were higher global oil prices, which translates into a higher diesel price.

Speaker #3: Our network in Nigeria is about 95% on diesel generators, 5% on the grid. So, diesel prices have flowed through into our cost structures—just over 30% of OPEX within Nigeria.

Speaker #3: It's energy prices, and that's substantially diesel. The way our contracts work, the cost in the quarter is based on the prior quarter's average diesel prices.

Ralph Mupita: The way our contracts work, the cost in the quarter is the prior quarter's average diesel prices. What we experienced in Q2 of this year will come into Q3, then Q3 will come into Q2, and we will talk a little bit about that. Notwithstanding that, we really pushed hard on capitalization. The CapEx intensity in Nigeria was over 20% as we pursued growth in our mobile network, and pushing hard on the significant home opportunity that we spoke about at the capital markets day that we see in Nigeria. Pushing both a combination of fixed wireless access as well as fiber, where we see the use case and investment case for fiber to be pretty strong. The other big call-out that I mentioned was we had a directive from the FCCPC, which is a competition authority there, to suspend airtime advance in April.

Speaker #3: So what we experienced in Q2 of this year will come into Q3, and then Q3 will come into Q2. We'll talk a little bit about that.

Speaker #3: Notwithstanding that, we really pushed hard on capitalization. The capex intensity in Nigeria was over 20%. As we pursued growth in our mobile network and pushed hard on the significant home opportunity that we spoke about at the Capital Markets Day, that we see in Nigeria.

Speaker #3: We're pushing both a combination of fixed wireless access as well as fiber, where we see the use case and the investment case for fiber to be pretty strong.

Speaker #3: The other big callout that I mentioned was we had a directive from the FCCPC, which is the competition authorities there, to suspend airtime advance in April.

Speaker #3: Our posture, as always, is that we take a zero-tolerance approach to any kind of regulatory sanctions and positions. So we brought our airtime base down to a quarter of what the run rate would have been in Q1.

Ralph Mupita: Our posture, as always, is we take zero tolerance to regulatory sanctions and positions. So we brought our airtime base down to a quarter of what the run rate would have been in Q1. So that has had massive impacts on the revenue would have generated between April, May, and June. Subsequent to the period ending, we received communications from the FCCPC, and we are back on a recovery path with the airtime advance, and we are moving from a one vendor environment to four vendors that are now in the system. So in Q3 and Q4, we should start to see that build up back, in terms of the whitelisted base, where we can extend airtime advance in Nigeria. So that had a big drag on the service revenue in Q2. You see a 13% print, including the airtime advance impact.

Speaker #3: So that has had massive impacts on the revenue we would have generated between April, May, and June. Subsequent to the period ending, we've received communications from the FCCPC, and we're back on a recovery path with the airtime advance. We're moving from a one-vendor environment to four vendors that are now in the system.

Speaker #3: So in Q3 and Q4, we should start to see that build-up back in terms of the whitelisted base, where we can extend airtime advance in Nigeria.

Speaker #3: So, that had a big drag on the service revenue in Q2. You see a 13% print, including the airtime advance impact. But if you were to strip that out, that's kind of high 20s.

Ralph Mupita: But if you were to strip that out, that is high 20s service revenue growth in Nigeria. There was also the base effect of last year's tariff increase, which came fully into Q2, which creates a bit of a base effect, and I will come back to that in a subsequent slide. But I think what we are pleased with is that demand in Nigeria continues to be robust. Whether you look at net additions and when you look at data usage growth, the demand is structurally strong and remains so in Nigeria. As I mentioned, one of the issues we saw was just the importance of communicating the two effects we saw in Nigeria. As I mentioned, the first is the base effect. So on the left-hand side of the chart, the graph is showing year-on-year increase of service revenue growth in yellow.

Speaker #3: Service revenue is growing in Nigeria. There was also the base effect of last year's tariff increase, which came fully into Q2. This creates a bit of a base effect, and I'll come back to that in a subsequent slide.

Speaker #3: But I think what we are pleased with is that demand in Nigeria continues to be robust. And whether you look at net additions, and when you look at data usage growth, the demand is structurally strong and remains so in Nigeria.

Speaker #3: As I mentioned, one of the issues we saw was just the importance of communicating the two effects we saw in Nigeria. As I mentioned, the first is the base effect.

Speaker #3: So on the left-hand side of the chart, the graph is showing year-on-year increase of service revenue growth in yellow. And then the gray bars are showing you compounded two-year average, which is smoothing out some of those base effects.

Ralph Mupita: Then the gray bars are showing you compounded two-year average, which is smoothing out some of those base effect. So what you can see between Q1 2025 and Q2 2025, a very elevated increase in the service revenue growth. That is when the tariff increase, the 50% tariff increase came into full effect. So it drove very strong growth in Q2, very strong growth into Q3. But when you start to look at a much more normalized two-year CAGR, you see that actually the growth is more normalized. The right-hand side of the chart is telling another story around demand. So we have indexed Q1 2025 to 100 up to Q2 2026. So we are now generating over 65% service revenue, absolute service revenue versus the first quarter of last year when the tariff increases came through.

Speaker #3: So, what you can see between Q1 2025 and Q2 2025 is a very elevated increase in the service revenue growth. That is when the tariff increase—the 50% tariff increase—came into full effect, so it drove very strong growth in Q2 and very strong growth into Q3.

Speaker #3: But when you start to look at a much more normalized two-year KGAW, you see that actually the growth is kind of more normalized. The right-hand side of the chart is telling another story around demand.

Speaker #3: So we've indexed Q1 2025 to 100 up to Q2 2026. We are now generating over 65% absolute service revenue versus the first quarter of last year, when the tariff increases came through.

Speaker #3: Those two effects, including the extra time suspension, are the major drags, which reverse out as we move into the second half of the year.

Ralph Mupita: Those two effects, including the MTN Xtra Time suspension, are the major drags which reverse out as we move into the H2 of the year. We are confident that the medium-term guidance framework we gave around Nigeria will be maintained on service revenue. On the EBITDA margin, we will still be in range, but because of the higher energy prices, we see ourselves at the lower end of the range. The lower end of the range is around 53% EBITDA margin. That is Nigeria. Moving to Ghana. Ghana had a stellar performance in the year, sustaining service revenue growth of 32%. Inflation has come down quite a lot. Inflation is just under 4%, and Ghana is out of hyperinflation. Many of you remember that last year, we were talking about Ghana having gone into hyperinflation.

Speaker #3: And we are confident that the medium-term guidance framework we gave around Nigeria will be maintained on service revenue. On the EBITDA margin, we’ll still be in range.

Speaker #3: But because of the higher energy prices, we see ourselves at the lower end of the range. The lower end of the range is around a 53% EBITDA margin.

Speaker #3: So that is Nigeria. Moving to Ghana, Ghana had a stellar performance in the year, sustaining service revenue growth of 32%. Inflation has come down quite a lot.

Speaker #3: Inflation is just under 4%, and Ghana is out of hyperinflation. Many of you will remember that last year we were talking about Ghana having gone into hyperinflation.

Speaker #3: It's out of hyperinflation, and that has some accounting effects that I'll explain a little bit later. We saw a slight weakness in the city.

Ralph Mupita: It is out of hyperinflation, and that has some accounting effects that I will explain a little bit later. We saw a slight weakness in the cedi, versus the closing of last year, and averaging out at 11.33 GHS to the US dollar. The macro environment, we see as relatively stable, and we pushed quite hard in rolling out new sites and very strong CapEx additions in the period, rolling out new sites. Again, it is a market that we believe has got strong home connectivity potential. We saw a very strong growth in EBITDA and then EBITDA margin. Our highest EBITDA margin we are generating across the business is in Ghana at 61.8%, and very strong PAT growth. You can see that data contribution to service revenue is pretty close to almost 60% now in Ghana, where we are seeing very strong growth and demand.

Speaker #3: Compared to the close of last year, and averaging out at 11.33 cedis to the US dollar, the macro environment we see as relatively stable. We pushed quite hard in rolling out new sites, with very strong CapEx additions in the period.

Speaker #3: And again, it's a market that we believe has got strong home connectivity potential. We saw very strong growth in EBITDA, and the EBITDA margins—our highest EBITDA margin we're generating across the business is in Ghana, at 61.8%.

Speaker #3: And very strong PAT growth. You can see that data contribution to service revenue is now pretty close to almost 60% in Ghana, where we're seeing very strong growth and demand.

Speaker #3: You saw Nigeria average customers using about 14.8 gigs. Ghana is like 19. So, and the demand continues to grow in that particular market. On Fintech, as I mentioned, the reported print and growth, 13.3.

Ralph Mupita: You saw Nigeria average customers using about 14.8 gigs. Ghana is like 19. The demand continues to grow in that particular market. On fintech, as I mentioned, the reported print and growth, 13.3, and the non-operational items which I will touch on too were really around the Uganda election shutdown of the mobile money system. Of course, Ghana is a big part of our fintech platform, second only to Ghana. There was a change in the float. We are earning 4% on float. That was brought down to 1, and that had an impact. The final bridge point, which I will come to a little bit later, is this MTN Xtra Time in Nigeria effect. As I mentioned earlier on, the ecosystem continues to be strong. We see high transaction volumes, transaction values being very strong.

Speaker #3: And the non-operational items, which I'll touch on too, were really around the Uganda election shutdown of the mobile money system. And of course, Ghana is a big part of our fintech platform.

Speaker #3: Second only to Ghana. There was a change in the float, through earning 4% on float. That was brought down to one, and that had an impact. The final bridge point, which I'll come to a little bit later, is this extra time in Nigeria effect.

Speaker #3: But, as I mentioned earlier on, the ecosystem continues to be strong. We see high transaction volumes, transaction values being very strong, and advanced services—which are the future—continuing to grow very strongly.

Ralph Mupita: Advance services, which are the future, continuing to grow very strongly. Pleasing growth that we saw, particularly around BankTech, so that is up 78%. The majority of our BankTech has been through partner banks. As we mentioned before, we will start to incrementally do our own balance sheet lending as we look to acquire the appropriate licenses across several markets, and we are seeing good growth on payments and e-commerce as well as remittances across the piece. Active agents have also grown, and active merchants, which gives us a sense of the capillarity of our network and usage across the group, by 18%, 2.3 million active merchants that accept mobile money across our markets. In terms of our medium-term guidance, I think we are pretty pleased with most of the indicators. The key areas of work still to be done are South Africa.

Speaker #3: We saw pleasing growth, particularly around bank tech, which is up 78%. The majority of our bank tech has been through partner banks. As we mentioned before, we'll start to incrementally use our own balance sheet.

Speaker #3: Lending, as we look to acquire the appropriate licenses across several markets. And we're seeing good growth in payments and e-commerce, as well as remittances across the piece.

Speaker #3: Agent active agents have also grown. And active merchants, which gives us a sense of the capillarity of our network and usage across, grew by 18%, to 2.3 million active merchants using, that accept mobile money, across our markets.

Speaker #3: In terms of our medium-term guidance, I think we're pretty pleased with most of the indicators. The key area of work still to be done is South Africa.

Speaker #3: As I said, South Africa—we diagnosed the problem. The key issue is prepaid voice. The balance is actually growing pretty healthily, but that's also a function of deliberate steps that Ferdy and the team have taken to improve the base quality and reduce the amount of airtime lending.

Ralph Mupita: As I said, South Africa, we diagnosed the problem. The key issue is prepaid voice. The balance is actually growing pretty healthily. That is a function also of deliberate steps that Ferdie and team have taken to improve the base quality and reduce the amount of airtime lending. FinTech at 13.3. We would call out that for the full year, we do not believe that we will be in the guidance range, particularly driven by the Xtra Time impact that we have seen in Nigeria. Leverage is very healthy, and as I mentioned, returns on capital employed remains at the top end of our own three-year outlook. Moving on to the financial review. Let me just start off by addressing the material non-cash adjustments to earnings, which gives you a bridge view from basic earnings to adjusted headline earnings. There are three big items to call out here.

Speaker #3: And then fintech at 13.3. We would call out that for the full year, we don't believe that we will be in the guidance range, particularly driven by the extra time impact that we've seen in Nigeria.

Speaker #3: Leverage is very healthy. And as I mentioned, returns on capital employed remain at the top end of our own three-year outlook. Moving on to the financial review, let me just start off by addressing the material non-cash adjustments to earnings.

Speaker #3: Which gives you a bridge view from basic earnings to adjusted headline earnings. There are three big items to call out here. The first is the impairment on remeasurement of our investment in the 49% shareholding in Irancell.

Ralph Mupita: The first is the impairment on remeasurement of our investment in 49% shareholding in Irancell. Given the macroeconomic conditions, both the hyperinflation as well as the currency devaluation, and on remeasuring that asset, we took just on a ZAR 3.9 billion impairment. That is 213 cents per share off our basic EPS. The investment now is about 3% of adjusted headline earnings and about 7% of group net assets. We have a carrying value there of about ZAR 10.5 billion. Obviously at the full year, there is an opportunity to look at remeasuring that investment. The second are hyperinflationary effects. We have a couple of markets in hyperinflation. Sudan, South Sudan, and Iran is one of those. The hyperinflation effect you see in Ghana is Ghana coming out of hyperinflation, and the translation effects of that to the P&L. That is another 22 cents that you see there.

Speaker #3: Given the macroeconomic conditions, both the hyperinflation as well as the currency devaluation, and on remeasuring that asset, we took just on a R3.9 billion impairment.

Speaker #3: That's 213 cents per share of our basic EPS. The business investment now is about 3% of adjusted headline earnings, and about 7% of group net assets.

Speaker #3: We have a carrying value there of about R10.5 billion. And obviously, at the full year, there is an opportunity to look at remeasuring that investment.

Speaker #3: The second are hyperinflationary effects, with a couple of markets in hyperinflation: Sudan, South Sudan, and Iran is one of those. Then there is Ghana coming out of hyperinflation and the translation effects of that to the P&L.

Speaker #3: That's another $0.22 that you see there. Then on foreign exchange, there was some slight benefit from Nigeria, but the big callouts were really around South Sudan.

Ralph Mupita: On foreign exchange, there was some slight benefit from Nigeria, but the big call-outs were really around South Sudan, where the currency of reference is the parallel market rate. The official market rate is not accessible. There is very limited foreign currency there. For all practical purposes, the parallel rate, and there was a massive devaluation of South Sudan pound, and that is the 65 cents that you see there. The upstreaming is Ghana upstreaming from Ghana to Dubai, and the exchange rate depreciation there is the large contributor of that. That is a repatriation set of issues. When you reconcile all of that, you get back to the 7.93 cents per share, which was up 21%, showing the underlying growth. Obviously, these items are all non-cash. I think as you will see later, that the cash conversion from earnings to cash remains very strong across the group.

Speaker #3: Where the currency of reference is the parallel market rate. The official market rate is not accessible. There's very limited foreign currency there, so for all practical purposes, the parallel rate—and there was a massive devaluation of the South Sudan pound.

Speaker #3: And that's the $0.65 that you see there. The upstreaming is Ghana, upstreaming from Ghana to Dubai. And the exchange rate depreciation there is the large contributor to that.

Speaker #3: So that's a repatriation set of issues. So, when you reconcile all of that, you get back to the 793 cents per share, which was up 21%.

Speaker #3: Showing the underlying growth. Obviously, these items are all non-cash, and I think, as you'll see later, the cash conversion from earnings to cash remains very strong across the group.

Speaker #3: I won't spend too much time on the P&L. There are many lines to analyze here, and some of them we've touched on—particularly service revenue and EBITDA.

Ralph Mupita: I will not spend too much time on the P&L. Many lines to analyze here, and some of them we have touched on, particularly service revenue and EBITDA. As you move down the P&L, I think some of the highlight points I have covered. FX losses, you will see increased by 31.9, largely explained, as I said, by South Sudan and the repatriation of dividends out of Ghana to Dubai to the group. The Irancell impairments. From a swing of profit from JVs and associates to a loss of ZAR 3.3 billion equivalent. We also saw through the improved profit before tax that actually the tax charge is much higher. We have seen the withholding taxes. As you repatriate, we had a pretty strong cash upstreaming H1, ZAR 13.9 billion. That attracts quite a bit of withholding taxes in the period.

Speaker #3: As you move down the P&L, I think some of the highlight points I've covered. FX losses, you'll see, increased by 31.9%, largely explained, as I said, by South Sudan.

Speaker #3: And the repatriation of dividends out of Ghana to Dubai, to the group. The Irancell impairment. So, from a swing of profit from JVs and associates to a loss of R3.3 billion equivalent.

Speaker #3: We also saw, through the improved profit before tax, that actually the tax charge is much higher. And we've seen the withholding taxes. So as you repatriate, we had a pretty strong cash upstreaming half year: 13.9 billion.

Speaker #3: So, that attracts quite a bit of withholding taxes in the period. And the strong earnings of Nigeria and Ghana, with the minorities, you'll see that there's a strong share of minorities—about R4 billion—that went through to non-controlling interest.

Ralph Mupita: The strong earnings of Nigeria and Ghana with the minorities, you will see that there is a strong share of minorities, about ZAR 4 billion, that went through to non-controlling interest. Just walking through some of the elements of the P&L. I think a couple of key messages on the service revenue contribution. As I mentioned, data is now 50% of service revenue and the biggest contributor, growing at 29%. I think a few call-outs. Obviously, all the bearers are in growth. Even voice at 2.4, the growth is much higher when you strip out South Africa, where growth in the H1 was a negative 10.4%, but a very healthy growth that you see digital services increasing their own contribution, wholesale being also a big part of, in particular, the South African business. If we look at the fintech, coming back to fintech, again, kind of decomposing the revenue bearers.

Speaker #3: Just walking through some of the elements of the P&L, I think there are a couple of key messages on the service revenue contribution. As I mentioned, data is now 50% of service revenue.

Speaker #3: And the biggest contributor, growing at 29%. I think a few callouts: obviously, all the bearers are in growth. Even voice at 2.4%, the growth is much higher.

Speaker #3: When you strip out South Africa, where growth in the half was a negative 10.4%, you see very healthy growth, with digital services increasing their own contribution and wholesale being a big part of, in particular, the South African business.

Speaker #3: If we look at the fintech—coming back to fintech again—and kind of decompose the revenue bearers, the basic services, the basic services grew relatively sluggishly from our own performance.

Ralph Mupita: Basic services grew relatively sluggish from our own performance, and there were a couple of challenges there. I mentioned Uganda, because of the election shutdown. Advanced services, I mentioned, growing at 32%, and airtime advance actually contracted in the period. That is largely a function of suspension of airtime advance in Nigeria. When you look at the margin, the margin has come down slightly, 42.4%, but that is largely driven by the lower contribution of airtime advance. If you normalize for that, actually, the margin is about 38.8, which is still relatively healthy. Then you can see the mix effect revenue contribution on the right-hand side of the chart, that slowly increasing the proportion of advance services, pretty much a third of total services from a revenue contribution side. As I mentioned, how does the 13.3 translate to 19.3?

Speaker #3: And there were a couple of challenges there. I mention Uganda because of the election shutdown. Advanced services, I mentioned, are growing at 32%. And airtime advance actually contracted in the period.

Speaker #3: That's largely a function of the suspension of airtime advance in Nigeria. When you look at the margin, the margin has come down slightly, to 42.4%. But that's largely driven by the lower contribution of airtime advance.

Speaker #3: If you normalize for that, actually the margin is about 38.8%, which is still relatively healthy, and then you can see the mix effect revenue contribution on the right-hand side of the chart.

Speaker #3: That slowly increasing the proportion of advanced services to pretty much a third of total services from a revenue contribution side. As I mentioned, how does the 13.3 translate to 19.3?

Speaker #3: The three drivers—the election, shutdown for the whole system—we were out for over a week. Now, a week doesn't seem like a long time, but it's difficult to fill that week up.

Ralph Mupita: The three drivers, the election shutdown for the whole system, we were out for over a week. A week does not seem like a long time, but it is difficult to fill that week up over time, so that is 0.6 percentage points. The Ghana float rate changed 4% to one, as the inflation and rates came down. That compressed some of the earnings we would have ordinarily enjoyed. Then the big impact is really our suspension of the MTN Xtra Time or airtime advance in Nigeria. You can see that bridge view to try and create a much more normalization effect. Obviously, these are non-operational items, but the team is working hard to try and reverse those. The big one being Nigeria. As I mentioned, we now have a full vendor platform that we are working hard to bring back to full capacity. Group expenses.

Speaker #3: Over time. So that's 0.6 percentage points. The Ghana float trade changed from 4% to 1% as inflation and rates came down. That compressed some of the earnings we'd have ordinarily enjoyed.

Speaker #3: And then the big impact is really our suspension of the extra time, or airtime advance, in Nigeria. And you can see that bridge view to try and create a much more normalization effect.

Speaker #3: So, obviously, these are non-operational items. But the team's working hard to try and reverse those, the big one being Nigeria. As I mentioned, we now have a four-vendor platform that we're working hard to bring back to full capacity.

Speaker #3: Group expenses—a couple of points I would raise here. Firstly, they grew at 13.3% on a blended basis. That's lower than the 17.5% service revenue growth.

Ralph Mupita: A couple of points I would raise here. Firstly, they grew at 13.3 on a blended basis. That is lower than the 17.5 service revenue growth. So operating leverage coming through, and you can see the total cost to revenue contribution coming down from just under 56%. That is cost to revenue to just slightly above 52. When you look at where the big changes are, the big ones are really cost of sales. Some of that would have been on the MTN Xtra Time side, to be clear. But I think more importantly is the network leases and utilities. We have revised quite a lot of the tower contracts and over the last couple of years, they have given us some benefit and resilience when we look at the expense breakdown. So this is driving the operating leverage that is improving the EBITDA margins.

Speaker #3: So operating leverage coming through. And you can see the total cost to revenue contribution coming down from just under 56%. That is a cost to revenue to just slightly above 52.

Speaker #3: When you look at where the big changes are, the big ones are really cost of sales. Some of that would have been on the extra time side.

Speaker #3: To be clear, I think more importantly, it's the network leases and utilities. We have revised quite a lot of the tower contracts, and over the last couple of years, they've given us some benefit and resilience when we look at the expense breakdown.

Speaker #3: So this is driving the operating leverage that's improving the EBITDA margins. We do make a call-out because it's important to reference energy prices, in a global environment where energy prices are relatively higher than we would have all thought.

Ralph Mupita: We do make a call-out because it's important to reference energy prices in a global environment where energy prices are fairly, relatively higher than we'd have all thought. We thought it's important to reiterate that energy costs for the group are 15% to 20%, and in Nigeria, they're more between 30% to 35% in terms of OpEx contribution. Because diesel is the biggest component of total energy, I think you can see that the movement of diesel prices has an impact on margins. We have given the sensitivity before that says if you start off the year with diesel prices like 1,100 naira per liter, and you move to 2,000, the sensitivity, that would shave off 1.8% to 2 percentage points of EBITDA margin, if you annualize it for the full H2 of the year. Expenses are nicely managed and creating operating leverage.

Speaker #3: We thought it's important to reiterate that energy costs for the Group are 15% to 20%. And in Nigeria, they're more, between 30% to 35%, in terms of opex contribution.

Speaker #3: And because diesel is the biggest component of total energy, I mean, I think you can see that the movement of diesel prices has an impact on margins.

Speaker #3: We have given the sensitivity before that says if you start off the year with diesel prices at 1,100 naira per liter, and you move to 2,000, the sensitivity would shave off 1.8 to 2 percentage points of EBITDA margin.

Speaker #3: If you annualize it for the full second half of the year, expenses were nicely managed and created operating leverage. We've also benefited in the half from our continuing expense efficiency program, which generated about $1.2 billion of expense savings in the period.

Ralph Mupita: We've also benefited in the half with our continuing expense efficiency program, which generated about ZAR 1.2 billion of expense savings in the period. Moving on to EBITDA. Obviously, as I mentioned, we've got a bit of jaws helping us here between service revenue and expenses. We're seeing EBITDA growing just under 7 percentage points above service revenue. We are seeing this margin expansion. H1 was a bit of a low for the group. It had a bit of the Nigeria shocks that we experienced with the sudden currency devaluation, and we burned through our distributable reserves. We built these back up in Nigeria, and you can see a nice uptick on margin. If you think about MTN as a business with several clusters, let's call them five clusters. We saw Nigeria expanding margins. There's expansion of margins in Ghana. There's expansion of margins in Francophone.

Speaker #3: Moving on to EBITDA, obviously, as I mentioned, we've got a bit of jaws helping us here between service revenue and expenses. We're seeing EBITDA growing just under 7 percentage points above service revenue.

Speaker #3: And we are seeing this margin expansion. H1 was a bit of a low for the group. It had a bit of the Nigeria shocks that we experienced with the sudden currency devaluation.

Speaker #3: And we burned through our distributable reserves. We've built these back up in Nigeria, and you can see a nice uptick on margin. If you think about MTN as a business with several clusters—let's call them five clusters—we saw Nigeria expanding margins.

Speaker #3: There's expansion of margins in Ghana. There's expansion of margins in Francophone. In SIA, there's a slight contraction—that's largely to do with Uganda. And then in South Africa, if you strip out the share-based payments, we would have had a slight margin improvement.

Ralph Mupita: SEA, there's a slight contraction that's largely to do with Uganda. In South Africa, if you strip out the share-based payments, we would have had a slight margin improvement. The share-based payments created the contraction. So there's broad-based contribution towards this margin improvement that you've seen. On CapEx, we capitalize about 16.6% in terms of CapEx intensity. That's just shy of ZAR 20 billion. Some of the markets where we're seeing foster growth opportunities like Nigeria and elsewhere, the CapEx intensity is much closer to 20%. This is the average of the portfolio. We anticipate that in this full year, we will remain in that 15% to 18% that we try and manage the allocation of CapEx into building the network, the IT investments that are needed to grow our business.

Speaker #3: The share-based payments created the contraction. So there’s broad-based contribution towards this margin improvement that you’ve seen. On capex, we capitalize about 16.6%, in terms of capex intensity.

Speaker #3: That's just shy of 20 billion rand. In some of the markets where we're seeing faster growth opportunities, like Nigeria and elsewhere, that capex intensity is much closer to 20%.

Speaker #3: So this is the average of the portfolio. And we anticipate that in this full year, we will remain in that 15% to 18% range that we try and manage—the allocation of capex into building the network and the IT investments that are needed to grow our business.

Speaker #3: So, you can see on the right-hand side of the chart that the majority of the capex in the half went into the network connectivity business, as we pursue growth in the mobile network as well as in our home connectivity.

Ralph Mupita: You can see on the right-hand side of the chart that the majority of the CapEx in the half went into the network connectivity business as we pursue growth in the mobile network as well as in our home connectivity. Just on cash conversion, how are we translating earnings to equity-free cash flow. You can see there the bridge view, and some key callouts. Obviously, cash CapEx is a large item in the half. That was just under ZAR 23 billion. Operating free cash flow before spectrum and licenses. We didn't have much licenses and spectrum in the period. That grew a healthy 23%. The free cash flow itself grew, when you look at net interest paid and taxes, were just on to 66%.

Speaker #3: Just on cash conversion—how we translate earnings to equity free cash flow—you can see there the bridge view, and some key callouts. Obviously, cash capex is a large item in the half.

Speaker #3: That was just under 23 billion. Operating free cash flow before spectrum and licenses—we didn't have much in the way of licenses and spectrum in the period—that grew a healthy 23%.

Speaker #3: Then the free cash flow itself grew when you look at net interest paid and taxes, but just on to 66%. We've had over 4 billion rand equivalent of that was paid to non-controlling interest.

Ralph Mupita: We've had over ZAR 4 billion equivalent that was paid to non-controlling interest minorities, driving the equity free cash flow to just shy of a third, 33% growth. That is the base framework for our shareholder remuneration framework. On leverage and liquidity, again, very strong balance sheet. Group leverage, as I mentioned, 0.3. As you see, cash upstreaming last year was about 8.2, this year 13.9. Very strong cash upstreaming from markets such as Ghana and Nigeria in particular. We have cash upstreaming from more broadly across the portfolio, and we tend to have a much stronger H2 of cash upstreaming than the H1. This is pleasing to see the amount of cash upstreaming that's come through in the half, just under 14 billion. Then when you look at our debt stack at the holdco level, quite pleasing, a good maturity profile.

Speaker #3: Minorities, driving the equity free cash flow to just shy of a third—33% growth. And that is the base framework for our shareholder remuneration framework.

Speaker #3: On leverage and liquidity, again, very strong balance sheets. Group leverage, as I mentioned, is 0.3. As you see, cash upstreaming last year was about $8.2 billion.

Speaker #3: This year, it was 13.9. Very strong cash upstreaming from markets such as Ghana and Nigeria in particular. But we have cash upstreaming more broadly across the portfolio.

Speaker #3: And we tend to have a much stronger second half of cash upstreaming than the first half. So, this is pleasing to see the amount of cash upstreaming that's come through in the half—just under $14 billion.

Speaker #3: And then, when you look at our debt stack at the HoldCo level, quite pleasing—a good maturity. We have the final of the Eurobonds that we've had probably for the last decade.

Ralph Mupita: This year, as I mentioned, we have the final of the Eurobonds that we've had probably for the last decade. That comes up for maturity in October. As I said, we have the resources to deal with that and other investments that may be ongoing. So very limited US dollar. For sure, when we bring IHS, that kind of ramps back up. On a pro forma basis, we see that moving from 0.3 times to about 0.8 in the way that we've thought about the funding for the transaction. Just finally, just looking at the results and standing back. I think the key call-out is high quality growth and returns delivered in the H1. From a CapEx intensity, you see 16.6 EBITDA margin, as I mentioned, is very healthy. Strong returns and free cash flow conversion.

Speaker #3: That comes up for maturity in October. And, as I said, we have the resources to deal with that and other investments that may be ongoing.

Speaker #3: So, very limited US dollar. For sure, when we bring IHS, that kind of ramps back up. And on a pro forma basis, we see that moving from 0.3 times to about 0.8, in the way that we've thought about the funding for the transaction.

Speaker #3: Just finally, just looking at the results and standing back, I think the key callout is kind of high-quality growth and returns delivered in the first half.

Speaker #3: From a capex intensity perspective, you see a 16.6% EBITDA margin, as I mentioned, is very healthy. Strong returns. And free cash flow conversion, when we look at free cash flow over reported profit after tax, is very strong at 92.5%.

Ralph Mupita: When we look at free cash flow over reported profit after tax, very strong at 92.5. At the end of the day, you want to convert as much of your earnings to free cash flow. So in the period, it was actually very pleasing. Just moving on to the outlook and priorities, which is the final section before we take any questions. Obviously, the macro outlook remains uncertain, driven by global geopolitical developments that are out there. All of you read the same material that we do in trying to understand the forecast. These are not our numbers. These are numbers that we get from other agencies. But just showing that growth across our markets, sub-Saharan markets, is expected to remain fairly resilient. Inflation is expected to remain quite muted. There might be a slight tick up in Ghana according to the datasets that we see.

Speaker #3: At the end of the day, you want to convert as much of your earnings to free cash flow. So, in the period, it was actually very pleasing.

Speaker #3: Just moving on to the outlook and priorities, which is the final section before we take any questions. Obviously, the macro outlook remains uncertain, driven by global geopolitical developments that are out there.

Speaker #3: All of you read the same material that we do in trying to understand the forecast. These are not our numbers; these are numbers that we get from other agencies.

Speaker #3: But just showing that growth across our markets—sub-Saharan markets—is expected to remain fairly resilient. Inflation is expected to remain quite muted. There might be a slight tick up in Ghana, according to the datasets that we see.

Speaker #3: But the main issues to watch out for in the second half are the direction of travel for inflation across the markets and where the currencies move.

Ralph Mupita: But the main issues to watch out for into the H2 is the direction of travel for inflation across the markets. Where do the currencies move? Of course, energy prices because it affects the power input, as well as the direct expenses into overall MTN and Nigeria in particular. So what are we monitoring? Amongst many things. We monitor many things, but we'll call out these four. Global oil prices and how they translate into diesel costs. Regulatory developments, where are the spectrum acquisition opportunities? Ghana, I think, is well known that the 5G is coming up in Ghana imminently. There are a few others that are there. South Africa, there is the end user regulations that is topical and in discussions with the authorities. Then obviously the geopolitical developments have second order effects that we need to keep an eye on.

Speaker #3: And, of course, energy prices, because they affect the power input as well as the direct expenses for overall MTN and Nigeria in particular.

Speaker #3: So, what are we monitoring? Amongst many things, we monitor many things. But we’ll call out these four: global oil prices and how they translate into diesel costs.

Speaker #3: Regulatory developments where the spectrum acquisition opportunities—Ghana, I think, is well known, that the 5G is coming up in Ghana imminently. There are a few others that are there.

Speaker #3: In South Africa, there are the end-user regulations that are topical. And in discussions with the authorities, obviously the geopolitical developments have second-order effects that we need to keep an eye on.

Speaker #3: Technology is always an area that needs focus. If you get the technology shifts wrong, the business will lose its footing. We're looking at how these AI frontier models are developing both in the West and in the East, how these open rate models are developing and the capabilities at what cost points.

Ralph Mupita: Technology is always an area that needs focus. You get the technology shifts wrong, the business will lose its footing. We are looking at how these AI frontier models are developing, both in the West and in the East, how these open weight models are developing and their capabilities, at what cost points, what token consumption, token economics go with those. These are things that Charles and the team are focused on as we deploy the AI ourselves internally. LEO satellite partnerships and how we embrace them within our overall connectivity space. We do believe that there is a place for partnerships, and we do believe that one has to take a market-by-market approach on how we deal with that. Chipset pricing is really impacting handset affordability. Obviously, the chip manufacturers can either direct demand to handsets or the big build-out of data centers that is happening globally.

Speaker #3: What token consumption, token economics go with those? These are things that Charles and the team are focused on as we deploy the AI ourselves internally.

Speaker #3: LEO satellite partnerships and how we embrace them—within our overall connectivity space, we believe that there's a place for partnerships, and we do believe that one has to take a market-by-market approach on how we deal with that.

Speaker #3: Chips and pricing are really impacting handset affordability. Obviously, the chip manufacturers can either direct demand to handsets or to the big build-out of data centers that's happening globally.

Speaker #3: So we've seen that create, for the moment, a bit of a barrier towards smartphone affordability. We have to work around that by finding financing solutions, so these are some of the things that we're monitoring as we go into the second half.

Ralph Mupita: We have seen that create a bit of a, for the moment, a barrier towards smartphone affordability, and we have to work around that by finding financing solutions. These are some of the things that we are monitoring as we go into the H2. What are our key focus areas? They are pretty much the same as we spoke about with our full-year results of FY 2025. Deliver the prepaid recovery. It is a deliberate reset, and we are seeing pleasing momentum in that. It will take a bit of time. We want to sustain the commercial momentum we are seeing across the business. As I mentioned that we are seeing broad-based growth. One market which has been under pressure and used to be quite a significant contributor, particularly to group upstreaming, used to be Benin.

Speaker #3: And so, what are our key focus areas? They're pretty much the same as we spoke about with our full-year results of FY 2025: deliver the prepaid recovery.

Speaker #3: It's a deliberate reset, and we're seeing pleasing momentum in that. It'll take a bit of time. We want to sustain the commercial momentum we're seeing across the business.

Speaker #3: As I mentioned, that we're seeing broad-based growth. One market which has been under pressure and used to be quite a significant contributor, particularly to group upstreaming, used to be Benin.

Speaker #3: And in Benin, within the Francophone market, the regulatory asymmetry has been removed, which is very helpful for us, particularly around price, because we have a big business there.

Ralph Mupita: Benin, within the Francophone market, the regulatory asymmetry has been removed, which is very helpful for us, particularly around price floor, because we have a big business there. We have strong market leadership, Uche and team. Uche and Carl are working around that. We want to see that momentum coming through. We want to see momentum in Côte d'Ivoire. We want to see the strong growth in Cameroon come back and the recovery, particularly around Uganda, so that we have resilience within the portfolio and being able to drive the growth. We have our fintech commercial and strategic priorities. We are launching a new platform. We have spoken in the past that we need to build a new future fit fintech platform. We are starting that in Nigeria as we speak right now. We did announce our partnership with Ant International.

Speaker #3: We have strong market leadership, which is in the team. So Uche and Carl are working around that. We want to see that momentum coming through.

Speaker #3: We want to see momentum in Côte d'Ivoire. We want to see the strong growth in Cameroon, the comeback and the recovery, particularly around Uganda.

Speaker #3: So that we have resilience within the portfolio and are able to drive growth. And we have our fintech commercial and strategic priorities. We are launching a new platform. We've spoken in the past about the need to build a new, future-fit fintech platform.

Speaker #3: So we're starting that in Nigeria as we speak right now. We did announce our partnership with Ant Financial, Serene and the team. I've done a lot of work around that platform in Nigeria.

Ralph Mupita: Serigne and the team have done a lot of work around that platform in Nigeria. I think we will be able to launch in the next couple of weeks what we call MVP one, so that we address all the latency and issues around the platform that has kind of hobbled up the progress that we would have wanted. Very pleased that that is now in traction and looking at a variety of licenses across some of the markets. Obviously the rebuild of airtime advance into Q3 and Q4. The fourth is continue to maintain capital discipline, cost discipline, and maintaining this healthy financial profile for the group, and then obviously completing the IHS transaction. On the IHS transaction, a few points before I wrap up and close. As we have said before, from a pro forma perspective, transaction is accretive revenue and to earnings.

Speaker #3: So I think we'll be able to launch, in the next couple of weeks, what we call MVP1. And so that will address all the latency and issues around the platform that have kind of hobbled the progress that we would have wanted.

Speaker #3: So very pleased that that is now in traction and looking at a variety of licenses across some of the markets. And, obviously, the rebuild of Airtime Advance into Q3 and Q4.

Speaker #3: The fourth is to continue to maintain capital discipline and cost discipline, and to maintain this healthy financial profile for the Group. And then, obviously, completing the IHS transaction.

Speaker #3: So, on the IHS transaction, a few points before I wrap up and close. As we've said before, from the proforma perspective, the transaction is accretive to revenue and to earnings.

Speaker #3: And I think we continue to believe that will carry on and translate, and obviously we're going to have to fund the acquisition by raising some debt to fund a portion of the transaction.

Ralph Mupita: I think we continue to believe that will carry on and translate. Obviously we are going to have to fund the acquisition by raising some debt to fund a portion of the transaction. You will remember that we will fund it both through the cash that the business has accumulated from operating cash resources as well as the sale proceed from LatAm. Both of those will be used as buying out the 75% shareholders, then there will be about $1.1 billion that we need to raise to complete, that has all been arranged, and we will be ready to act as soon as we have met all the conditions precedents. On the Federal Competition and Consumer Protection Commission, I think I need to be a little bit precise on this one just so that you get the framing correct.

Speaker #3: You will remember that we'll fund it both through the cash that the business has accumulated from operating cash resources, as well as the sale proceeds from LATTER. Both of those will be used as buying out the to raise to complete, and that's all been arranged. We will be ready to act as soon as we meet all the conditions precedent.

Speaker #3: On the FCCPC, I think I need to be a little bit precise on this one, just so that you get the framing correct. We’ve agreed with the competition authorities to have 30% localization to Nigerian investors.

Ralph Mupita: We have agreed with the competition authorities to have 30% localization to Nigeria investors on an arm's length market basis, subject to market conditions. Obviously we would like to do it as quickly as possible, but there are all those provisors. Any proceeds from that sell down for that part of the business will be used to reduce the IHS, which obviously will reduce the total debt stack that we will have on day one. So we will see how that progresses once the transaction. We do anticipate that the transaction should close. We had positive feedback from COMESA on Friday with the Federal Competition and Consumer Protection Commission, and the three major outstanding ones would still be the Nigerian Communications Commission, which we are engaging them with, the competition authorities here in South Africa.

Speaker #3: On an arm's length market basis, subject to market conditions. And obviously, we would like to do it as quickly as possible, but there are all those provisos. Any proceeds from that sell-down for that part of the business will be used to reduce the IHS, which will obviously reduce the total debt stack that we'll have on day one.

Speaker #3: So we'll see how that progresses once the transaction—you know, and we do anticipate that the transaction should close. We had positive feedback from COMESA on Friday.

Speaker #3: We have the FCCPC and the two—the three major outstanding ones would still be the NCC Nigeria, which we are engaging with. The competition authorities here in South Africa, with the size of the transaction from a COMCOM, it will have to go through the tribunal, as is customary given the size of the transaction.

Ralph Mupita: With the size of the transaction from a CompCom, it will have to go through the tribunal, as is customary, given the size of the transaction, and we will also have CMAC and Equus still to go. So these are areas that Colakilia and his team, our M&A regulatory legal teams are working to try and get us. Some of the steps we have completed and the other ones seem on track if you have closed off H2 of the year as the time period. So, ladies and gentlemen, thanks very much for listening to me the last, I think almost 45 minutes. Yeah, I have had to do the financial review. Haven't done it in several years, so hopefully it came out clearly. The medium term guidance, we are reaffirming it.

Speaker #3: And we'll also have CEMAC and ECOWAS still to go. So these are areas that Cola Killa and his team—our M&A regulatory legal teams—are working to try and get us. So some of the steps we've completed, and the other ones seem on track if you have close of second half of the year as the time period.

Speaker #3: So, ladies and gentlemen, thanks very much for listening to me for the last, I think, almost 45 minutes. And, yeah, I've had to do the financial review. I haven't done it in several years.

Speaker #3: So, hopefully it came out clearly. The medium-term guidance—we are reaffirming it. As we said, for this year, fintech will be out of guidance.

Ralph Mupita: As we said, for this year, Fintech will be out of guidance, but over a three to five-year period, which is what our guidance is, we are maintaining that guidance at this period. Shareholder remuneration framework is in place, 40% to 60% of equity free cash flow in this period. That grew 32%. We have initiated a buyback, and appointed the broker. So that should commence, has commenced effective today. So we have confirmed previously to you that at the end of each quarter, we will report on how that buyback program has gone. So at the end of Q3, we will give you some feedback. The investment case, which we spend a lot of time taking you through with our capital markets day, remains the core of how we think about the opportunity for digital and financial inclusion across the markets.

Speaker #3: But over a three- to five-year period, which is what our guidance is, we are maintaining that guidance at this period. The shareholder remuneration framework is in place—40% to 60% of equity free cash flow in this period, which grew 32%.

Speaker #3: And we have initiated the buyback and appointed the broker, so that has commenced effective today. We have confirmed previously to you that at the end of each quarter, we’ll report on how that buyback program has gone.

Speaker #3: So, at the end of Q3, we'll give you some feedback. The investment case, which we spent a lot of time taking you through with our Capital Markets Day, remains the core of how we think about the opportunity for digital and financial inclusion.

Speaker #3: Across the markets, we remain excited about it and committed to delivering the value that we're promising shareholders. With that, Roy, I'll pause and, I think, open up for any questions.

Ralph Mupita: We remain excited about it and committed to delivering the value that we are promising shareholders. With that, Roy, I will pause and I think open up for any questions. Thank you.

Speaker #3: Thank you.

Speaker #1: Thanks for that, Rolf. A big applause—he did two people's jobs. Before I go to questions in the room, some of the questions that have come online—I think we'll cover a lot of the things that you're interested in, particularly the ones around South Africa.

[Company Representative] (MTN Group): Thanks for that, Ralph. A big applause. He did two people's jobs. Before I go to questions in the room, some of the questions that have come online, I think will cover a lot of the things that you are interested in, particularly the ones around South Africa. I want to bunch them together and then I will put them out there. The first question is around MTN Xtra Time rationalization, and its impact on data and voice in South Africa. What the question is how much further do you need to go? What is an ideal level of MTN Xtra Time penetration? When do you think all of this bottoms out and you start seeing an improvement from a top-line perspective?

Roy Mutooni: Thanks for that, Ralph. A big applause. He did two people's jobs. Before I go to questions in the room, some of the questions that have come online, I think will cover a lot of the things that you are interested in, particularly the ones around South Africa. I want to bunch them together and then I will put them out there. The first question is around MTN Xtra Time rationalization, and its impact on data and voice in South Africa. What the question is how much further do you need to go? What is an ideal level of MTN Xtra Time penetration? When do you think all of this bottoms out and you start seeing an improvement from a top-line perspective?

Speaker #1: So, I want to group them together, and then I'll put them out there. So, the first question is around the extra time rationalization and its impact on data and voice in South Africa.

Speaker #1: So what the question is, is how much further do you need to go? What is an ideal level of extra time penetration? When do you think when do you think all of this bottoms out and you start seeing an improvement from a top line perspective?

Speaker #2: Yeah, I've heard in the room, so I'm not going to pretend to be Thato in a moment and do his job as well. Freddie, can you get a mic to Freddie?

Ralph Mupita: Freddie in the room, so I am not going to pretend to be Freddie Mokoena and do his job as well. Freddie, can we get a mic to Freddie, who can talk about the initiatives around SA.

Speaker #2: Who can talk about the initiatives around Essay?

Speaker #3: Good afternoon, everybody. We’ve done a lot of work on Extra Time. We feel that, at this particular point in time, we have reached a level where we are comfortable to start pushing Extra Time into the market again.

Freddie Mokoena: Good afternoon, everybody. We have done a lot of work on MTN Xtra Time. We feel at this particular point in time that we have reached a level where we are comfortable to start pushing MTN Xtra Time into the market again. We have started doing this. Of course, the concern is we must do it in a very responsible manner. We cannot just go out there and push MTN Xtra Time. We could end up in a similar situation where we feel we were earlier, where we were perhaps penetrating too deep and also penetrating in the wrong part of the market. But it is obviously substantial and it has a direct impact on revenue, whether it is voice or data. It just has an immediate direct impact on it.

Speaker #3: We've started doing this. Of course, the concern is that we must do it in a very responsible manner. We can't just go out there and push extra time.

Speaker #3: We could end up in a similar situation to where we were earlier, where we were perhaps penetrating too deep and also penetrating in the wrong part of the market.

Speaker #3: But it's obviously substantial, and it has a direct impact on revenue, whether it's voice or data. It just has an immediate, direct impact on it.

Speaker #2: While we still have you there, Freddie, one other question that keeps coming up is if sales see up to date to their payments, and when will negotiations around an updated pricing framework for the roaming agreement be finalized?

[Company Representative] (MTN Group): While we still have you there, Freddie, one other question that keeps coming up is Cell C up to date with their payments, and when will negotiations around an updated pricing framework for the roaming agreement be finalized?

Roy Mutooni: While we still have you there, Freddie, one other question that keeps coming up is Cell C up to date with their payments, and when will negotiations around an updated pricing framework for the roaming agreement be finalized?

Speaker #3: So the relationship with sales here, I think, is healthy and ongoing. Of course, contracts of that nature are huge and complex, and they also allow for parties to get together.

Freddie Mokoena: The relationship with Cell C, I think, is healthy and ongoing. Of course, contracts of that nature are huge and complex, and they also allow for parties to get together when it is required. So we are busy talking to Cell C at the moment. I have said before, and I think it is important to reiterate again, I would not like to provide more detail. We do have an NDA, and it is very complex. So would not like to give more information on Cell C at this stage.

Speaker #3: When it's required. So, we are busy talking to Sales here at the moment. I've said before, and I think it's important to reiterate again, I wouldn't like to provide more detail.

Speaker #3: We do have an NDA, and it is very complex. So, I wouldn't like to give more information on sales here at this stage.

Speaker #2: Thanks, Freddie. Any questions in the room? Louise?

[Company Representative] (MTN Group): Thanks, Freddie. Any questions in the room, Louise?

Roy Mutooni: Thanks, Freddie. Any questions in the room, Louise?

[Analyst]: Hi. Thanks for the opportunity. Freddie, maybe if we can stick with you on South Africa CapEx. It seems you are spending at the current run rates half of that of your number one peer. Can you give us color? Do you think that will accelerate into the second half?

Speaker #4: Hi, everyone. Thanks for the.

Speaker #5: Opportunity. Freddie, maybe if we can stick with you. On South Africa CAPEX, it seems you are spending, at the current run rates, half of that of your number one tier.

Speaker #5: Can you give us some color? Do you think that will accelerate into the second half?

Speaker #4: Yeah, CAPEX.

Speaker #3: Can you hear me?

Freddie Mokoena: Can you hear me?

Speaker #2: Yeah, we can hear you.

[Company Representative] (MTN Group): Yeah, we can hear you.

Roy Mutooni: Yeah, we can hear you.

Freddie Mokoena: CapEx always accelerates in the second part of the year. We right now are busy with a substantial upgrade on our radio systems. We started, I think, about six weeks or seven weeks ago. So, you will see an increase in CapEx. The rollouts also been quite promising. We have seen a good improvement in quality, and we have also seen data growth on the back of the CapEx rollout. But I think it is fairly normal that it comes in towards the latter part of the year. SA's CapEx is a bit slower than Nigeria. Nigeria always goes a lot earlier. So you see it earlier. SA was a bit slower. I think the other issue on the upgrade of the RAN, we had to go through quite an extensive procurement process as well. So it did take a little bit longer than what we anticipated.

Speaker #3: CAPEX always accelerates in the second part of the year. We are right now busy with a substantial upgrade on our radio systems. We started, I think, about six or seven weeks ago.

Speaker #3: So you'll see an increase in capex. The rollouts have also been quite promising. We've seen a good improvement in quality, and we've also seen data growth off the back of the capex rollout.

Speaker #3: But I think it's fairly normal that it comes in towards the latter part of the year. SA's capex is a bit slower than Nigeria.

Speaker #3: Nigeria always goes a lot earlier, so you see it earlier. SA was a bit slow. And I think the other issue on the upgrade of the RAM was that we had to go through quite an extensive procurement process as well.

Speaker #3: So, it did take a little bit longer than what we anticipated.

Speaker #5: Thanks, Freddie. And my second question is on the uncertain tax exposures contained in your contingent liabilities. That has doubled year on year. Is this related to new tax assessments, or is it penalties and just interest?

[Analyst]: Thanks, Freddie. My second question is on the uncertain tax exposures contained in your contingent liabilities. That has doubled year-on-year. Is this related to new tax assessments or is it penalties and with interest?

Speaker #2: Yeah, new tax assessments. I mean, across the portfolio, from time to time you do have disputes with the tax authorities where the tax authorities look back, and if we believe it's relatively certain, we'll put it through or put it into provisions.

Ralph Mupita: Our new tax assessments, I mean, across the portfolio, from time to time, you do have disputes with the tax authorities, whether the tax authorities look back. If we believe it is relatively certain, we will put it through or put into provisions. So on a contingent basis, it would be communicating that there are new matters generally that we are dealing with.

Speaker #2: So, on the contingent basis, it would be communicating that there are two, there are new matters generally that we're dealing with.

Speaker #1: Thanks, team, and thanks for taking our questions. Lucy Ali, Nedbank. Just on Ghana, business seems like it's growing quite nicely. Can we maybe just get a sense of what the growth profile and sort of runway is for that business?

Luc Ely: Thanks, team, and thanks for taking our questions. Luc Ely, Nedbank. Just on Ghana, business seems like it is growing quite nicely. Can we maybe just get a sense of what the growth profile and sort of runway is for that business? If it is indexed to home connectivity, how should we be thinking about potential cannibalization of the revenue streams and the capital intensity?

Speaker #1: And if it is indexed to Home Connectivity, how should we think about potential cannibalization of other revenue streams, or the capital intensity?

Speaker #2: Yeah, I mean, I think, as you say, Ghana has had a good runway, and I think capital markets—the big question was, how long can this last?

Ralph Mupita: Well, I think as you say, Ghana has had a good runway, and I think capital markets, the big question was how long can this last? Obviously, we are saying to the team, keep pushing. I think the big growth vector for Ghana going forward is, we will move from mobility to home. When I say in the future, I am not talking about the next quarter or two, but more structurally the next 3 years, is we see a significant home opportunity, in Ghana, that is addressable from our point of view. It will come in two forms, obviously, fiber and fixed wireless access. We have been pushing fiber quite a bit now because we have not had 5G spectrum.

Speaker #2: And obviously, we're saying to the team, keep pushing. I think the big growth vector for Ghana going forward is we'll move from mobility to home.

Speaker #2: And when I say in the future, I'm not talking about the next quarter or two, but more structurally, the next three years, is we see a significant home opportunity in Ghana.

Speaker #2: That we can, that's addressable from our point of view. And it'll come in two forms: obviously, fiber and fixed wireless access. We've been pushing fiber quite a bit now because we haven't had 5G spectrum.

Speaker #2: So the potential for getting decent quantities of low-band spectrum, as well as the mid-band spectrum, is very attractive to us, just given the significance of the home opportunity and balancing between fixed wireless access and fiber.

Ralph Mupita: The potential for getting decent quantums of low-band spectrum, as well as the mid-band spectrum, is very attractive to us, just given the significance of the home opportunity and balancing between fixed wireless access and fiber. So that is a growth vector that we are encouraged by. Actually, Ghana, if you look at the bearers, it has actually got a decent contribution from the other bearers, such as digital, as an example. But the big one would be that the balance sheet in Ghana can accommodate a level of debt to finance such spectrum acquisition without putting to peril the kind of earnings and cash upstreaming that we would ordinarily enjoy. So yeah, the margin is quite strong at 61.8%. But the big thing for us would be seeing the home opportunities turn into cities and returns.

Speaker #2: So that's a growth vector that we are encouraged by. Actually, Ghana, if you look at the bearers, it's actually got a decent contribution from the other bearers such as digital, as an example.

Speaker #2: But the big one would be that the balance sheet in Ghana cannot accommodate a level of debt to finance such spectrum acquisition without putting to peril the kind of earnings and cash upstreaming that we would ordinarily enjoy.

Speaker #2: So yeah, I mean, the margin is quite strong at 61.8%. But the big thing for us would be seeing the Home opportunity turn into Sities and returns.

Speaker #1: Ralph, sticking with Ghana—a question, an interesting one here. The Ghana EBITDA margin must be high enough that the regulator takes notice. It's pretty rare that you get asked about how you get margins down, but what flexibility do you have, and how do you think about the size of the Ghana business in the context of the Ghanaian economy?

[Company Representative] (MTN Group): Ralph, sticking with Ghana. A question, interesting one here. The Ghana EBITDA margin must be high enough that the regulator takes notice. It is pretty rare that you get asked about how you get margins down, but what flexibility do you have, and how do you think about the size of the Ghana business in the context of the Ghanaian economy?

Roy Mutooni: Ralph, sticking with Ghana. A question, interesting one here. The Ghana EBITDA margin must be high enough that the regulator takes notice. It is pretty rare that you get asked about how you get margins down, but what flexibility do you have, and how do you think about the size of the Ghana business in the context of the Ghanaian economy?

Speaker #2: Yeah, when PESA was having margins of 60%, no one was asking that question, I'm sure. Look, I mean, the reality is that we've invested very strongly into the market and through the cycle.

Ralph Mupita: Yeah. When M-PESA was having margins of 60s, no one was asking that question, I am sure. Look, I mean, the reality is that we have invested very strongly into the market and through the cycle. So the market position we have and the returns we are generating is a function of sustained investment. So, we are always saying to authorities when they travel to markets is that part of the growth and size and the scale is actually a derivative of the investment. If you do not put investment, you will not get that growth. But if you put the investment, the growth will come because of the nascent demand. This is not all top-line driven. So you saw voice in Ghana is actually pretty muted. It is really driven by data. And remember, we have SMP regulations still intact, with six or seven measures around our market behavior because of our scale.

Speaker #2: So the market position we have, and the returns we're generating, is a function of sustained investment. So what we're always saying to authorities when they travel to markets is that part of the growth, size, and scale is actually a derivative of the investment.

Speaker #2: If you don't put in investment, you won't get that growth. But if you put in the investment, the growth will come because of the nascent demand.

Ralph Mupita: If you do not put investment, you will not get that growth. But if you put the investment, the growth will come because of the nascent demand. This is not all top-line driven. So you saw voice in Ghana is actually pretty muted. It is really driven by data. And remember, we have SMP regulations still intact, with six or seven measures around our market behavior because of our scale.

Speaker #2: This is not all top-line driven. You saw that voice in Ghana is actually pretty muted. It's really driven by data. And remember, we have S&P regulation still intact.

Speaker #2: We have like six or seven measures around our market behavior because of our scale. We are S&P in Ghana, so we already have restrictions around what we can and can't do in Ghana.

Ralph Mupita: We are SMP in Ghana, so we already have restrictions around what we can and cannot do in Ghana. The operating leverage has enabled these margins to get to where they are. Do we think that they will sustain at this level forever? I am not sure we can stand here and say that. For us in Ghana, the important thing is continuing to meet the demand that we see, and make sure that we make a social contribution beyond just the taxes that we pay. And I think Stephen and team are very focused on that.

Speaker #2: The operating leverage has enabled these margins to get to where they are. Do we think that they will sustain at this level forever? I'm not sure we can stand here and say that.

Speaker #2: I mean, for us in Ghana, the important thing is continuing to meet the demand that we see, and, yeah, making sure that we make a social contribution beyond just the taxes that we pay.

Speaker #2: And I think Stephen and the team are very focused on that.

Speaker #1: Thanks, Ralph. Murray Winkler would like to know: The group plans this $6 billion buyback over three years. Subject to the share price being attractively valued, is it possible for you to do it much faster, like in a year?

[Company Representative] (MTN Group): Thanks, Ralph. Murray Winckler would like to know, the group plans this ZAR 6 billion buyback over three years. Subject to the share price being attractively valued, is it possible for you to do it much faster, like in a year?

Roy Mutooni: Thanks, Ralph. Murray Winckler would like to know, the group plans this ZAR 6 billion buyback over three years. Subject to the share price being attractively valued, is it possible for you to do it much faster, like in a year?

Speaker #2: Yeah, we can't give up, we can't give up that kind of information just yet. I mean, our program has been $6 billion to be executed, up to a maximum of 2028.

Ralph Mupita: Yeah. We can't give up that kind of information just yet. Our program has been ZAR 6 billion to be executed up to a maximum of 2028. When we allocate the resources to a broker that they go on, we give them a framework and a mandate. Let's see where they get to and see where we are end of each quarter, and we'll be able to update. I don't think I can say much more than that. If I say more, I think you'll have a sense of our own internal view of what is fair value. Murray, we can't say more than that.

Speaker #2: And when we allocate the resources to a broker, they go on and we give them a framework and a mandate. Let's see where they get to and see where we are at the end of each quarter, and we'll be able to update our— I don't think I can say much more than that.

Speaker #2: If I say more, I think you'll have a sense of our own internal view of what is fair value. And, Murray, we can't say more than that.

Speaker #1: Lucy?

[Company Representative] (MTN Group): Luc Ely?

Roy Mutooni: Luc Ely?

Speaker #3: Just my second question, just on the SA business. There have been some nice cost efficiencies that have been extracted over time. I guess, how much runway is there to keep going with that to remain competitive?

Luc Ely: Just my second question, just on the SA business, there's been some nice cost efficiencies that have been extracted over time.

Luc Ely: I guess, how much runway is there to keep going with that to remain competitive, and how much longer before you start cutting into the muscle?

Speaker #3: And how much longer before you start cutting into the muscle?

Speaker #2: Really?

Ralph Mupita: Really?

Speaker #1: Yeah. What is important to the cost initiative is that it requires some structural change. This is not just simply getting vendors in and just asking for discounts.

Freddie Mokoena: Yeah. What is important to the cost initiative is that it requires some structural change. This is not just simply getting vendors in and just asking for discounts. This requires us to do business and do work in a different way. Just an example of this, to extensively use AI where we can. Just one example of a project is we did some POC in the Western Cape, used AI to help us get more efficiency out of power consumption, which was very successful. So we will now take that product and roll it out through the rest of the country. So this cost initiative is much more structural in nature than just simply cutting. And I think there is still quite a lot of runway to go. It is going to take 2 or 3 years to actually unlock it because it is structural in nature.

Speaker #1: This requires us to do business and work in a different way. Just as an example, we are extensively using AI where we can. One example of a project: we did some POC in the Western Cape.

Speaker #1: We used AI to help us get more efficiency out of our power consumption, which was very successful. So, we will now take that product and roll it out through the rest of the country.

Speaker #1: So this cost initiative is much more structural in nature than just simply cutting. And I think there's still quite a lot of runway to go.

Speaker #1: It's going to take two or three years to actually unlock it because of these structural natures. Freddie, do you still have the mic?

[Company Representative] (MTN Group): Freddy, while you still have the mic.

Roy Mutooni: Freddy, while you still have the mic.

Speaker #2: Oh, you might have stayed here on the stage. Keep the mic with you.

Ralph Mupita: Oh. You might as well stay on the stage. Keep the mic with you.

[Company Representative] (MTN Group): In South Africa, what proportion of your voice data traffic is carried on spectrum that you access via spectrum sharing agreements? Is there a path to becoming self-sufficient and move away from the spectrum sharing in the short to medium term?

Roy Mutooni: In South Africa, what proportion of your voice data traffic is carried on spectrum that you access via spectrum sharing agreements? Is there a path to becoming self-sufficient and move away from the spectrum sharing in the short to medium term?

Speaker #1: In South Africa, what proportion of your voice data traffic is carried on spectrum that you access via spectrum sharing agreements? Is there a path to becoming self-sufficient and moving away from this spectrum sharing in the short to medium term?

Speaker #1: Yeah, yeah. So I think the first thing is, I mean, spectrum is the lifeblood of our industry. And I was sitting with the network guys the other day, and we were talking about the spectrum itself, and one of them came up with an analogy I think that is very valuable.

Freddie Mokoena: Yeah. I think the first thing is, spectrum is the lifeblood of our industry. I was sitting with the network guys the other day, and we were talking about the spectrum itself, and one of them came up with an analogy, I think, that is very valuable. Said when you look at a spectrum, it's like a highway you drive on. The more lanes you have, the quicker it flows. Even if we are carrying the substantial portion of the voice spectrum on our own frequency, you can always do with another lane or two. It just unlocks efficiency so quickly. My view is we would always like to have as much spectrum as possible.

Speaker #1: Said when you look at a spectrum, it's like a highway you drive on. The more lanes you have, the quicker it flows. And even if we are carrying a substantial portion of the voice spectrum on our own frequency, you can always do with another lane or two.

Speaker #1: It just unlocks a sufficient efficiency so quickly. So, my view is we would always like to have as much spectrum as possible. I think, to a large extent, when you see what's happening in Nigeria, Nigeria's ability to grow at this level is largely due to the fact that they had a clear spectrum acquisition strategy that they could follow.

Freddie Mokoena: I think to a large extent, when you see what's happening in Nigeria and Nigeria's ability to grow at this level is largely due to the fact that they had a clear spectrum acquisition strategy that they could follow. We will always want more spectrum. At the moment, with the spectrum we have, the majority of our traffic is carried on our own spectrum. Yeah.

Speaker #1: So we will always want more spectrum. At the moment, with the spectrum, the majority of our traffic is carried on our own spectrum.

Speaker #1: Yeah.

Speaker #2: Just sparing you for the minute. A question on Fintech. On Fintech revenue growth, outside of the three factors impacting growth, growth remains below guidance.

[Company Representative] (MTN Group): Just sparing you for the minute. A question on fintech.

Roy Mutooni: Just sparing you for the minute. A question on fintech. On fintech revenue growth, outside of the three factors impacting growth remains below guidance. What interventions are you implementing that will accelerate growth in the near to medium term?

[Company Representative] (MTN Group): On fintech revenue growth, outside of the three factors impacting growth remains below guidance.

Speaker #2: What interventions are you implementing that will accelerate growth in the near to medium term? Yeah, we have Serene here, but maybe I can start and Serene can top and tail.

[Company Representative] (MTN Group): What interventions are you implementing that will accelerate growth in the near to medium term?

Ralph Mupita: Yeah, we have Suren here, but maybe I can start, and Suren can top and tail. The real drivers for growth will be, one, bringing back airtime advance to Q1 levels. That's not a small number. You saw it took out 5 percentage points of growth just in the H1. So that's a big driver. The second is advance services, looking at accelerating. The big driver would really be around lending in over the medium term. That whole lending stack and being able to have the right licenses and structures around per market. To make a difference, that's got to be in Ghana and Uganda on our current portfolio. Then over time, of course, Nigeria, where we've got the Ant platform. Suren is in the room. Suren, please add and subtract from my comments.

Speaker #2: I mean, the real, the real drivers for growth will be, one, bringing back airtime advance to kind of Q1 levels. That's not a small number.

Speaker #2: You saw it took out 5 percentage points of growth just in the half, so that's a big driver. The second is advanced services. Looking at accelerating, the big driver would really be around lending over the medium term.

Speaker #2: That whole lending stack, and being able to have the right licenses and structures around per market and to make a difference, that's got to be in Ghana and Uganda on our current portfolio.

Speaker #2: And then over time, of course, Nigeria, where we've got the ANT platform. Serene is in the room. Serene, please add and subtract to my comments.

Speaker #1: Yeah, Ralph, I think you've answered it well. So maybe what I want to add is around basic services, which decelerated faster because we needed to adjust our tariffs in some markets, like Cameroon, which is our third largest market.

Serigne Dioum: Yeah, Ralph, I think you've answered it well. Maybe what I want to add is around basic services, which decelerated faster because we needed to adjust our tariffs in some markets like Cameroon, which is our third largest market. We have Wave entering there, and we needed to adjust the prices. So that in next year, we'll see a better growth because we needed to match Wave. Now we're going to grow again. We'll see it next year. Ralph mentioned some markets like Benin, where also we have some competition pressure, and we are looking at also adjusting. As you said, the conditions have improved, and we may not do that and have a better growth trajectory in Benin. These are the issues that we are dealing with.

Speaker #1: And we have Wave entering there, and we needed to adjust the prices so that next year we'll see better growth, because we will move from where we needed to match Wave now.

Speaker #1: We're going to grow again, and we'll see it next year. Ralph also mentioned some markets, like Benin, where we have some competitive pressure.

Speaker #1: And we are also looking at adjusting, but as he said, the conditions have improved and we may not do that, and have a better growth trajectory in Benin.

Speaker #1: So, these are the issues that we are dealing with. But as he said, advanced services are going quite well, and we are looking at accelerating lending, which will help us to grow faster.

Serigne Dioum: As you said, advance services are growing quite well, and we are looking at accelerating lending, which will help to grow faster.

Speaker #2: Ralph, what do you see as the impact of dealing with four parties for airtime credit in Nigeria? Does it increase the complexity? Does it allow you to get to your targets a lot quicker?

[Company Representative] (MTN Group): Ralph, what do you see as the impact of dealing with four parties for airtime credit in Nigeria? Does it increase the complexity? Does it allow you to get your targets a lot quicker, or does it contribute more to NPLs?

Roy Mutooni: Ralph, what do you see as the impact of dealing with four parties for airtime credit in Nigeria? Does it increase the complexity? Does it allow you to get your targets a lot quicker, or does it contribute more to NPLs?

Speaker #2: Or does it contribute more to NPLs? Look, I think the key thing is we are working within a regulatory framework that says you have to have more than one provider.

Ralph Mupita: Look, I think the key thing is we are working within a regulatory framework that says you have to have more than one provider. There are four that have been licensed, or been allowed to operate in Nigeria. We are going to be optimizing the whitelisted base, where we are getting the best performance. The team, Carl, working with Suren, will be looking at that base and saying, allocating the whitelisted base to where we are getting best performance. It will create a bit of competitive dynamics, but we are trying to optimize revenue maximization within that regulatory framework.

Speaker #2: So there are four that have been licensed, all been allowed to operate in Nigeria. So we are going to be optimizing the whitelisted base, where we're getting the best performance.

Speaker #2: So the team—Carl working with Serene—will be looking at that base and saying, allocating the whitelisting base to where we're getting best performance.

Speaker #2: So it will create a bit of kind of competitive dynamics, but we are trying to optimize revenue maximization within that regulatory framework. So for some of them, they don't, haven't had the experience of our base and the kind of machine learning that comes with it.

Ralph Mupita: For some of them that haven't had the experience of our base and the kind of machine learning that comes with it will take them a little bit of time. That's why you can't expect us in this quarter to all of a sudden by the end of the quarter, look like we were in Q1, because there's some learning effects. But I think that will improve quite a bit as we go into Q4. Carl and team and Serene have not reported to date, this is early days, that there are any concerning patterns. There will be a dynamic allocation across the four. Great performance, more that will be off the whitelisted base will be provided. And we'll give you a sense by Q3 how that is all working out.

Speaker #2: It will take them a little bit of time, so that's why you can't expect us in this quarter to all of a sudden, by the end of the quarter, look like we were in Q1, because there are some learning effects.

Speaker #2: But I think that will improve quite a bit as we go into Q4. Carl and team, and Serene, have not reported to date. This is early days.

Speaker #2: That there aren't any concerning patterns. So, there will be a dynamic allocation across the four. Great performance. More that will be off the whitelisted base will be provided.

Speaker #2: And we'll give you a sense by Q3 how that is all working out.

Speaker #1: Any more questions in the room?

[Company Representative] (MTN Group): Any more questions in the room?

Roy Mutooni: Any more questions in the room?

Speaker #3: Fewer questions are from R&B, Morgan Stanley. So, my question centers around the guidance that you provide. Given the reaction to the Nigeria slowdown, how has this changed how you intend in future to communicate temporary disruptions or headwinds?

Via Kutisa: Via Kutisa from RMB Morgan Stanley. My question centers around the guidance that you provide. Given the reaction to the Nigeria slowdown, how has this changed how you intend in future to communicate temporary disruptions or headwinds? If there are any changes that have been made to guidance, could you perhaps give us what those changes have been?

[Analyst] (RMB Morgan Stanley): Via Kutisa from RMB Morgan Stanley. My question centers around the guidance that you provide. Given the reaction to the Nigeria slowdown, how has this changed how you intend in future to communicate temporary disruptions or headwinds? If there are any changes that have been made to guidance, could you perhaps give us what those changes have been?

Speaker #3: If there are any changes that have been made to guidance, could you perhaps give us what those changes have been?

Speaker #2: Yeah. Look, I mean, the environment that we operate in is very dynamic. So the markets we operate in are not linear markets; there are fluctuations from time to time.

Ralph Mupita: Well, look, the environment that we operate in is very dynamic. The markets we operate in are not linear markets. There are fluctuations from time to time. You get enforcement action that say disconnect, you disconnect. Our approach is to manage, to also have a risk lens on it. The guidance we give is a medium-term guidance. We guide 3 to 5 years, because we know that there are fluctuations in between quarters. We will never give you a quarterly guidance because we just know that we are going to be wrong. Through the cycle, we feel strong. On Nigeria, just to kind of come back to Nigeria, is that as I said, there are two effects that reverse as we go into H2. The first is the tariff increase normalization. I think you will see it really slowing down as we are in Q4.

Speaker #2: You get an enforcement action that says, "Disconnect." You disconnect. So our approach is to also have a risk lens on it.

Speaker #2: The guidance we give is a medium-term guidance, so we guide three to five years. This is because we know that there are fluctuations in between quarters.

Speaker #2: So, we'll never give you quarterly guidance, because we just know that we are going to be wrong. But through the cycle, we feel strong.

Speaker #2: So, on Nigeria, just to kind of come back to Nigeria, as I said, there are two effects that reverse as we move out of—as we're going into H2.

Speaker #2: The first is the tariff increase normalization. I think you'll see it really slowing down as we are in Q4. You saw that graph. The year-on-year growth is high in Q2.

Ralph Mupita: You saw that growth, the year-on-year growth. It is high in Q2. It is lower in Q3, but still relatively high and kind of normalizes by Q4. We are still seeing net additions, so net new customers coming onto our network, 2.7 in Q1. They are consuming more data at 14.8 gigs per customer, 15% rise. There are base effects that you need to look at and saying, "Can Carl and the team continue to bring more users onto our network, and can those users use more and more data services?" Looking at that and the second impact, which is really restoration of airtime advance, gives us the confidence as we do our planning and forecasting, that meeting 20% is doable this year. Certainly this year, although the guidance is multi-year. For this year, because we see where energy prices are, we will be at the lower end of the range.

Speaker #2: It's lower in Q3, but still relatively high, and kind of normalizes by Q4. Now, we're still seeing net additions, so net new customers coming onto our network.

Speaker #2: 2.7 in Q1. They're consuming more data—14.8 gigs per customer, a 15% rise. So, there are base effects that you need to look at, and saying, can Carl and the team continue to bring more users onto our network, and can those users use more and more data services?

Speaker #2: So, looking at that and the second impact—which is really the restoration of airtime advance—gives us confidence as we do our planning and forecasting that meeting 20% is doable this year.

Ralph Mupita: Looking at that and the second impact, which is really restoration of airtime advance, gives us the confidence as we do our planning and forecasting, that meeting 20% is doable this year. Certainly this year, although the guidance is multi-year. For this year, because we see where energy prices are, we will be at the lower end of the range.

Speaker #2: Certainly, this year, although the guidance is multi-year. And for this year, because we see where energy prices are, we'll be at the lower end of the range.

Speaker #2: We won't finish the year at 55-plus. We would have needed to see a collapse in diesel prices sometime between now and the end of the year for that to be true.

Ralph Mupita: We will not finish the year at 55 plus. We would have seen a collapse in diesel prices sometime between now and the end of the year for that to be true. We are guiding much lower to the end of the range. We feel confident. We see the growth. It is a dynamic market, and some of these impacts on a quarterly basis reverse out quickly. We are pretty confident on the growth prospects of a market like Nigeria.

Speaker #2: So, we're guiding much lower to the end of the range. We feel confident we see the growth. It's a dynamic market, and some of these impacts on a quarterly basis reverse out quickly.

Speaker #2: So we're pretty confident about the growth prospects of a market like Nigeria.

Speaker #1: Maybe the last question online: Are there any markets where you see room for end-market consolidation? And where are you seeing the ability to price up in the face of where inflation is going?

[Company Representative] (MTN Group): Maybe the last question online. Are there any markets where you see room for in-market consolidation, and where are you seeing the ability to price up in the face of where inflation is going?

Roy Mutooni: Maybe the last question online. Are there any markets where you see room for in-market consolidation, and where are you seeing the ability to price up in the face of where inflation is going?

Speaker #2: Yeah, look, I mean, we're going to sound like stuck records here. Look, I mean, many of the markets we operate in have moved to basically a two-and-a-half-player market.

Ralph Mupita: Yeah, look, we are going to sound like stuck records here. Many of the markets we are operating have moved to basically a two and a half player market. I think if you look globally where you are seeing consolidation, whether it is in Europe, there is consolidation in the UK, there was consolidation in Europe more generally, and parts of Asia. India is effectively a two and a half player market. The markets that are attractive in able to attract sustained investment and generate attractive economics are generally two and a half, max three player markets globally. When you have a Pretoria, not that we are saying competition is not good, but actually, almost counterfactually, what you are finding is, for all of you here who are looking at the most recent merger in the UK, I do not need to name who it is.

Speaker #2: And I think if you look globally, where you're seeing consolidation—whether it's in Europe, there's consolidation in the UK, there was consolidation in Europe more generally.

Speaker #2: And parts of Asia. India is effectively a two-and-a-half-player market. The markets that are attractive and able to attract sustained investment and generate attractive economics are generally two-and-a-half, max three-player markets globally.

Speaker #2: So, when you have a plethora—not that we're saying competition is not good—but actually, almost counterfactually, what you're finding is, for all of you here who are looking at the most recent merger in the UK, I don't need to name who it is, there's a report that's come out that says a couple of things happen in consolidation.

Ralph Mupita: There is a report that has come out that says a couple of things happen in consolidation, is actually you sustain or increase investment. The customer does not suffer rise in prices. They stable or they fall. The market is more attractive. Nigeria is effectively a two and a half player market. Good economics coming out of that. You see similar in Uganda. Ghana is a little bit different, in that quite a few players pulled out with SMP. The market that has got a structure which is, at a global level, not as attractive would be South Africa, because the profit pools in South Africa are too small for the number of players to sustain the level of investment.

Speaker #2: It's actually sustain or increase investment. The customer does not suffer rising prices: they are stable, or they fall. And actually, the market is more attractive.

Speaker #2: So, Nigeria is effectively a two-and-a-half player market—good economics coming out of that. You see similar dynamics in Uganda. Ghana is a little bit different.

Speaker #2: In that, quite a few players pulled out when S&P. So the market that's got a structure which is, at a global level, not as attractive would be South Africa.

Speaker #2: Because the profit pools in South Africa are too small for the number of players to sustain the level of investment. So South Africa—and I think I've said this so many times—is a market that screams for consolidation at some point in the future.

Ralph Mupita: South Africa, and I think I have said this so many times, is a market that screams for consolidation at some point in the future because there are not enough profit pools, to sustain the significant investment that you would need. Which you are seeing in other markets where the competition frameworks or the markets in general are consolidating, but also providing more investment and consumers have more choice and prices are staying the same or actually falling. We will see what happens over the medium term.

Speaker #2: Because there are not enough profit pools to sustain the significant investment that you would need— which you're seeing in other markets where the competition frameworks, or the markets in general, are consolidating but also providing more investment. And consumers have more choice, and prices are staying the same or actually falling.

Speaker #2: So, we'll see what happens over the medium term.

Speaker #1: Thanks, Ralph. I think you've answered all the questions that came online and from the audience. For the people in the room, please join us in the foyer for drinks.

[Company Representative] (MTN Group): Thanks, Ralph. I think you have answered all the questions that came online and from the audience. For the people in the room, please join us in the foyer for drinks. We can continue the conversation. I want to thank you for spending this time with us, for the patience of going through all these slides and our update, and till next time. Thank you.

Roy Mutooni: Thanks, Ralph. I think you have answered all the questions that came online and from the audience. For the people in the room, please join us in the foyer for drinks. We can continue the conversation. I want to thank you for spending this time with us, for the patience of going through all these slides and our update, and till next time. Thank you.

Speaker #1: We can continue the conversation. I want to thank you for spending this time with us, and for your patience in going through all these slides and our update.

Speaker #1: And till next time, thank you.

Ralph Mupita: Thank you very much.