While the world is grappling with the war in Ukraine, MTN shareholders can afford a smile as the JSE-listed telecommunications giant’s share price topped a seven-year record. MTN share price closed above the ZAR200 mark for the first time since 2015 on Wednesday.
The Group closed at ZAR208.08 and is likely to have a good run in the coming weeks. This comes as Nigeria, one of its key markets, is poised to gain from increasing oil prices. Oil prices have been on a run since the beginning of 2021 and continue in 2022. The ongoing Russo-Ukraine war has seen many countries cutting off Russia’s crude oil supply, affecting overall oil supply and bolstering the international oil price.
MTN share price’s run started in 2020 when COVID-19 struck. This can be attributed to increased data usage that followed worldwide lockdowns. People worldwide were forced to work from home, driving up data consumption to record highs. Data consumption for MTN increased significantly in South Africa and Nigeria during the pandemic. MTN share price has grown by over 170% over the past twelve months alone.
Other factors supporting MTN share price
MTN has more good things going on besides growth in data revenue and oil prices. For example, the company plans to spin off its fintech and fibre assets into separate businesses. Shareholders expect this move to create more value for them.
More so, many good things have been happening for the company. Hence, the market expects it to publish strong full-year results for the year ending December 31, 2021, on March 9, 2022.
MTN share price is also being supported by the company’s decision to exit risky markets and shore up its presence in performing less-risky markets. The Group’s plan to leave the Middle East and a decision not to bid for an operating license in Ethiopia points to the fact that it is serious about controlling costs while maximizing revenue in their key markets.