MTN, a telecoms company, has announced that it will be increasing rates in a few markets as a result of the high rate of inflation in the industry.
This was disclosed in its first quarter report filed with the Johannesburg Stock Exchange on Thursday.
In its outlook for the rest of 2023, the MTN group said, “We anticipate that trading conditions across markets will remain challenging for the remainder of 2023 and we will continue to execute on our proactive measures to manage the near-term challenges and risks.
“Within this environment of elevated inflation, implementing selective price increases across the portfolio remains a critical priority to ensure that operations generate sufficient cash flows to fund future capital expenditure needed for building world-class networks.
“We will continue to have the necessary engagements with the regulatory authorities on such needed increases.”
The telecom company, which operates across 19 countries including South Africa, Nigeria and Ghana, said the blended inflation across its footprint remained elevated and averaged 18.5 per cent in Q1 2023, compared to 11.5 per cent in Q1 2022. Interest rates increased during the period as central banks acted to curb inflation. Higher inflation and interest rates weighed on consumers’ spending power and impacted business activity, the company said.
MTN Chief Executive Officer Ralph Mupita, in the statement, said, “MTN’s resilient business model and operational execution enabled us to continue to successfully navigate difficult macroeconomic, geopolitical and regulatory conditions in Q1 2023.