Avior Capital Markets - MTN Group Limited (10CM) MTN | Governance for growth

Report

Avior Capital Markets

Ruhan Du Plessis

MTN | Governance for growth

Please find our ESG analysis and proxy voting recommendation for MTN in this note, ahead the AGM on the 23rd of May 2019.

In our view, MTN's biggest issues over the past five years relate to a lack of good governance and in-country board representation. However, MTN has announced a board refresh with the appointments of MH Jonas as new independent chairman, a non-executive Nigerian national and the establishment of an International Advisory Board (IAB) of respected and connected individuals. The appointments address our concerns and reduce MTN's risk profile through increased independence of the board, in-country representation and well-connected industry expertise. Therefore, we increase MTN governance score to 3.11 out of 5 (FY'17: 2.92). By comparison, sector related peer VOD scored 3.65 and is ranked as â€˜good'.

14/05/2019 13 EN

Underlying

MTN Group Limited

MTN Group is a holding company engaged in the investment in the telecommunications industry offering voice services via 2G and 3G networks, including prepaid and postpaid airtime, please-call-me message service, international roaming, electronic voucher distribution services and community payphones, mobile and fixed data products, including short message service (SMS), multimedia message services, internet access, MTN MobileMoney, content portal MTN Play, Google SMS information services, USSD services and corporate data services. Co.'s operations are divided into the following three regions: South and East Africa, West and Central Africa, and the Middle East and North Africa.

See profile

ZAE000042164 Johannesburg Stock Exchange South Africa

Provider

Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

See profile

Analysts

Ruhan Du Plessis

Other Reports on these Companies

New Street Research

MTN (Buy, TP: ZAR130, +13%) Q4 24: Solid quarter, FY24 dividend up

MTN has reported a solid set of Q4 results with service revenue and EBITDA trends accelerating and service revenue growth growing a touch above the MT guidance this quarter. The company announced a dividend of 345cts for FY24 (previous guide was for 330cts) and the Board anticipates paying a minimum ordinary DPS of 370cts after the FY25 results.

EUR 8427.00

March 17, 2025 March 17, 2025 1 EN

New Street Research

MTN (Buy, TP: ZAR130, +62%) Feedback from small group call

We hosted a small group Zoom call with MTN Group CEO, Ralph Mupita, MTN Group CFO, Tsholofelo Molefe and Head of IR, Thato Motlanthe last week. Tone was overall positive, with a particularly bullish conversation around consolidation across Africa.

EUR 8427.00

November 27, 2024 November 27, 2024 1 EN

New Street Research

MTN (Buy, TP: ZAR130, +45%) Q1 24: Slow start to the year; decent top line in SA

MTN has reported a slightly slower set of Q1 results with both service revenue and EBITDA trends slightly decelerating (again) vs. Q4. We note that excluding Sudan, service revenue would have slightly improved.

EUR 8427.00

May 14, 2024 May 14, 2024 1 EN

Tiger Brands | ESG | Pressed to execute

TBS receives a corporate governance score of 3.37 out of 5 (FY '18: 3.42) and is rated as â€˜good'. TBS receives an ESG risk score of 2.6 (FY '18: 2.6) which we consider moderate. As in FY '18, there were various changes to the Board which raises corporate governance concerns surrounding succession planning and the execution of strategies. Post year-end, L Mac Dougall retired as CEO of the Group. N Doyle has become the new CEO of the Group as of 1 Feb '20. We note the corporate governance concerns around the appointment of N Doyle given that he left the Group at an important juncture in FY...

February 7, 2020 February 7, 2020 15 EN

Ayan Ghosh

Ayan Ghosh

SA Investment Strategy | Review of January 2020 for SA investors: Coronavirus weighs on the ZAR

From an SA asset-allocation perspective, SA Bonds (ALBI +1.2%) outperformed cash (STEFI +0.6%) and equities (Capped SWIX -2.6%) in Jan â€˜20. The ZAR was the worst performing EM currency in Jan â€˜20, depreciating by 6.8% against the USD, as EM risk appetite declined, with the Coronavirus spreading further than the Sars virus, which began in 2002, likely to hit global growth. Our discussions with various corporates in China suggest that the Coronavirus will peak over the coming weeks and could take until Mar '20 to resolve. In USDs, MSCI SA (-8.8%) underperformed MSCI EM (-4.7%) in 2020, as ...

February 5, 2020 February 5, 2020 9 EN

Harry Botha

Harry Botha

SA Banks | Low credit risk in commercial property | Time to buy SA banks

Challenging SA economic conditions bring SA REITs credit health and banks' lending to the sector into the spotlight. Our analysis in this report provides greater detail on SA banks' exposure to commercial property and listed REITs. Our stress tests highlight that SA banks' lending to listed REITs (exposed to SA or offshore operations) has been conservative to date. REITs' equity capital and diversified portfolios support the property companies' credit health. While SA banks' near-term earnings growth prospects are geared to SA economic conditions, we highlight that valuations are undemandin...

January 28, 2020 January 28, 2020 36 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

MTN | Governance for growth

MTN (Buy, TP: ZAR130, +13%) Q4 24: Solid quarter, FY24 dividend up

MTN (Buy, TP: ZAR130, +62%) Feedback from small group call

MTN (Buy, TP: ZAR130, +45%) Q1 24: Slow start to the year; decent top line in SA

Tiger Brands | ESG | Pressed to execute

SA Investment Strategy | Review of January 2020 for SA investors: Coronavirus weighs on the ZAR

SA Banks | Low credit risk in commercial property | Time to buy SA banks

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe