MTN (Buy, TP: ZAR130, +44%) Q4 23: Slower quarter but decent given the context; MT guidance maintained

MTN has reported a slower set of Q4 results but performance remains decent given the macro challenges the company has been facing. MT guidance has been reiterated which is encouraging.

African Telcos Deep dive on Fintech valuations; stay Bullish on AAF and MTN

We deep dive on African Telco’s Fintech valuations in this note which is a follow up of our higher-level note Show me the (Mobile) Money. African Telcos are becoming more active about unlocking value from Mobile Money (MoMo) with MTN’s recent deal with Mastercard and now rumours that AAF is looking to IPO its MoMo business. Global Fintech/Payments multiples have derated over the past couple of years, but we continue to see great value in the African Telco’s MoMo assets which remain one the key non-core drivers for growth.

MTN (Buy, TP: ZAR200, +135%) MTN Rwanda – Q4 23 Quick take: Good underlying trends; SR guidance maintained

MTN Rwanda has reported a solid set of Q4 numbers on an underlying basis (NSRe). Reported service revenue growth decelerated vs. Q3 impacted by the MTR cuts but EBITDA growth accelerated. Mid-term guidance for service revenue growth has been reiterated (“mid-teens service growth”) and the company targets a stable EBITDA margin.

Mitratel (Buy, TP: IDR1,135, +94%) Q1 24: Solid quarter

Mitratel reported a solid start to the year. Top line trends decelerated (last year’s Indosat towers acquisition has lapped) but remain solid.

Elisa (Neutral, TP: €54, +27%) Q1 24: EBITDA growth better than SR growth, but B2B EBITDA still negative y/y

Elisa reported good results, with stable service revenue growth (+3% YoY) but importantly an acceleration in clean EBITDA (to +6% y/y from +4% y/y in Q4). EBITDA growth was better than SR growth for the first time since Q3 2021. This is what the market wanted to see, as concerns have been around operational leverage;

Mobileye pre 1Q24 model update