MTN Nigeria grows 9-months revenue 13.92% to N975.8bn

Charles Abuede

• PBT down 0.6% to N211.6bn; PAT fell 3.3% to N144.24bn
• Mobile subscribers rose by 3.9m in 9 months to 75m
• Active data users on the network surged by 1.7m to 30.7m

Nigeria’s telecommunication markets leader, MTN Nigeria, has announced a 13 per cent rise in its total revenue to N975.76 billion for the nine months operating period ended September 2020.

The company’s revenue rose from N856.55 billion posted last year, despite a challenging year 2020, which has been hampered by the global pandemic and exchange rate volatility in Nigeria.

It, however, saw its profit after tax (PAT) dip marginally by 3.3 per cent to N144.24 billion during the period under review from N149.22 billion recorded during the same period of 2019.

In its unaudited financial results filed at the Nigerian Stock Exchange on Wednesday, MTN Nigeria disclosed that there was a 25.50 per cent rise in its network operating cost to N227.58 billion from N181.34 billion in 2019, while its profit before tax dived by 0.62 per cent to N211.59 billion as at end September 2020 from N212.90 billion in the corresponding period of 2019.

Also, the company’s mobile subscribers rose by 3.9 million in 9 months to 75 million as active data users on the network surged by 1.7 million to 30.7 million and its EBITDA grew by 9.1 per cent to N497.9 billion. Data revenue also rose by 57 per cent with an increase in data usage and traffic, while revenue from digital and FinTech services rose by 114.3 per cent and 28.3 per cent respectively. Growth was also recorded in voice revenue at 4.2 per cent.

Ferdi Moolman, chief executive officer of MTN Nigeria, in his comments on the result, said the year 2020 has been challenging for everyone with the company witnessing volatility in both voice and data revenues and thus, affecting the overall revenue trajectory.

“The COVID-19 pandemic was first reported in Nigeria during the first quarter of 2020 and the country has, to date registered over 62 000 cases and over 1,100 deaths, according to the NCDC. The recent agitations across the country are of further concern and our thoughts and prayers are with all those who directly and indirectly are affected.

“During the period under review, we saw volatility in both voice and data revenue, affecting the trajectory of our overall service revenue, as well as pressure on costs, which continues to impact our operating margins, dampening profitability. Also, data revenue rose by 57 per cent with an increase in data and traffic. Revenue from digital and FinTech services rose by 114.3 per cent and 28.3 per cent respectively, while the voice revenue growth was 4.2 per cent,” the MTN Nigeria CEO said.

Providing an outlook for the company, Moolman said “despite the relaxation of the lockdown restrictions, the operating environment remains challenging. We will continue to build our operational and financial resilience and execute on our strategy to position the business for sustained growth over the medium and long term. The availability of foreign exchange remains a constraint even as we strive to minimize its impact on the business.

“In the remaining quarter of 2020, we will build on the momentum from Q3 to further expand 4G coverage and broaden rural connectivity. This, backed by our revamped acquisition offers, will help to boost subscriber acquisition as well as support the continued growth in voice and data revenue.

“While the exchange impact on our lease rental costs continues to put downward pressure on EBITDA margin into Q4, we will continue to drive service revenue growth and optimize our balance sheet to unlock efficiency and support margins,” Moolman said.