MTN (MTN) – Known unknowns

Apart from the overall uncertainty of the impact of the Covid-19 pandemic on global growth and consumption, in the case of MTN the resultant depressed oil price has added to existing concern around the CBN’s ability to defend the Naira.

We anticipate that the increased traffic over the various lockdown periods due to work-from-home behaviour is a short-term effect which is likely to be offset by the longer-term deterioration in ARPU caused by Covid-19.