MTN Q3-20 earning report

[Godspower]

MTNNs operational performance in Q3 was in line with our expectations, with top and bottom line recovering strongly from the slump in the pandemic hit Q2. Though currently tracking behind, we expect the Q4 outturn to bring earnings in line with our 2020FY estimates. The start of the company’s PSB operations remains the key catalyst as mobile money in Nigeria presents a compelling growth/return opportunity for MTNN, in our view. We look for the company to provide an update on the Nigerian PSB license on the conference call. MTNN’s share price is up 33.3% YTD and on our estimates, the stock is trading on 2020E P/E and EV/EBITDA multiples of 12.2x and 5.2x, a discount to emerging market peers 20.0x and 5.9x. Our estimates are under review.