PHANTOM SHARES: The Finance Ghost: MTN — just a bump, or a bigger growth concern?
MTN remains up 21% this year, but a post-Q2 selloff left investors cautious as Nigeria’s revenue drop and Uganda’s margin compression weigh on future market guidance.
MTN's shares have experienced a notable correction of approximately 9% in price over the course of July, with the stock trading at R205 per share by month's end. Despite this downturn, the South African telecoms giant has still managed to outperform for the year, rising 21% year-to-date. However, investors remain cautious as Nigeria's revenue decline and Uganda's margin compression cast doubts on future market guidance.
MTN's performance has been driven primarily by its subsidiaries in Nigeria and Ghana, with a smaller presence in Uganda. The company's African expansion strategy has primarily focused on Nigeria and Ghana, while Vodacom has taken a more cautious approach to East Africa, including Egypt.
Written by urgent.news from Daily Maverick's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
