The directors of MTN Nigeria Communications plc have declared interim dividend amounting to N60 billion for the first-half (H1) period ended June 30, 2019. The company had in the year ended December 31, 2018 paid N73 billion dividend.
In the review H1’2019, MTNN sustained a solid performance, delivering double-digit growth in service revenue, underpinned by growth in voice and data revenue.
MTNN audited result shows service revenue increased by 12.12 percent to N566.946 billion from N505.667 billion in half-year (H1) 2018. MTNN added 3.3 million customers to its network, increasing its subscriber base to 61.5 million in the review period.
The telco’s half-year (H1) 2019 result released on Friday, July 26, at the Nigerian Stock Exchange (NSE) shows the interim dividend translates to N2.95 kobo per share. The register of shareholders will be closed from August 9 to 13, 2019. The qualification date for the interim dividend is August 8.
MTN Nigeria in January 2019 adopted IFRS 16 accounting standard in line with global best practices. The company saw data subscribers increase in the period (H1’19) under review by 2.1 million to 20.7 million.
Operating profit of N190.403 billion in H1’19 against N136.501 billion in H1’18 represents 39.49 percent increase. Profit before tax (PBT) of N141.797 billion in H1’19 against N108.354 billion in H1’18 shows increase of 30.86 percent; while the company’s profit for the review period at N98.930 billion implies an increase of 34.79 percent, from N73.395 billion in H1’18.
“We made significant network investments to improve network quality and expand our 4G coverage. Our recent work to revamp our data prices and accelerate our 4G network has put us in a strong competitive position to offer more value to our customers, supporting data and voice revenue growth which will ultimately strengthen our business,” said Ferdi Moolman, CEO, MTN Nigeria Communications plc.
“We are pleased with obtaining a super-agent licence from the Central Bank of Nigeria (CBN), which will enable us to build an agent network and accelerate the growth of our fintech business,” he said.
MTN recently made changes to its Board following the retirement of six pioneer non-executive directors on the expiration of their tenure and in compliance with applicable corporate governance code.
MTNN’s Chief Financial Officer Adekunle Awobodu has also indicated his intention to resign from the position in this second-half (H2) of 2019 for family-related reasons, Moolman revealed following the released H1’19 results.
MTN Nigeria Communications plc on May 16 listed by introduction its 20.35 billion (20,354,513,050) ordinary shares at N90 per share. It listed on the premium board of the NSE.
As at Friday, July 26, the share price of MTNN stood at N127, representing 28.28 percent increase since its listing. It added N2 (or 1.60 percent increase) to N125 recorded the preceding day. As at June 30, the company’s market capitalisation stood at N2.626 trillion.
MTNN recorded 11.4 percent increase in voice revenue, while data revenue was up by 31.7 percent in H1’19.
Fintech revenue increased by 21.2 percent; digital revenue decreased by 64.5 percent; capital expenses (capex) increased by 63.8 percent to N105.8 billion; earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 40 percent to N304.9 billion, while EBITDA margin increased by 10.7 percentage points to 53.8 percent.
Amid this impressive result, the company’s overriding priority for the remaining part of the year is to focus on its BRIGHT strategy to build a sustainable business and create value for customers.
“We will continue to progress in the second half of the year making improvements to our network experience, subscriber growth, and enhance operational efficiency. We expect lower data pricing and our acceleration of the 4G network expansion to bolster the acquisition of customers and data traffic volumes in the second half,” said Moolman.
IHEANYI NWACHUKWU
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