MTN Nigeria (ticker symbol MTNN) has shown significant resilience in the face of Nigeria’s challenging macroeconomic landscape. Over recent quarters, MTN Nigeria has managed to sustain growth despite the headwinds caused by inflation, cash shortages, and exchange rate volatility. In the first quarter of 2023, the company reported a 20.5% year-on-year increase in service revenue, reaching ₦565.9 billion, alongside a modest 8.5% growth in profit before tax to ₦155.8 billion.
This growth was driven by a 14.7% increase in active data users and a 9.4% rise in mobile subscribers, indicating that MTN’s core business remains robust. However, the company’s EBITDA margin did see a slight decline, and capital expenditures were notably reduced, reflecting a cautious approach amidst the broader economic uncertainty. Looking forward, MTN’s strategy appears focused on leveraging its extensive infrastructure investments to drive further growth.
The ElliotWave suggests that Wave 1 is already in place at 295. At that price, we saw a strong reaction from investors culminating in a 30% sell-off which is forming a 3 wave decline A-B-C. Wave C also appears to be making an ending diagonal which often signifies the end of a pattern. Target for this decline is the 150 region which is the were C is 100% of A.
