• Wednesday, June 12, 2024
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BusinessDay

MTN Nigeria profit jumps 45.5%, revenue hits N1.65tn

Mastercard to buy stake in MTN’s $5.2 billion fintech unit

MTN Nigeria Communication Plc has reported a profit after tax of N298.7 billion for the 2021 financial year, up 45.5 percent from N205.2 billion in 2020.

The telecommunications company saw its revenue increase by 22.9 percent to N1.654 trillion from N1.346 trillion in 2020, according to its results for the year ended December 31, 2021 released on Wednesday.

Its service revenue was up 23.3 percent to N1.651trillion; voice revenue grew by 8.4 percent to N971.4 billion, while data revenue increased by 55.3 percent to N516.1billion.

Digital revenue went up by 61.2 percent to N18 billion from N11.2 billion in 2020, while fintech revenue grew by 57.3 percent to N70.6 billion.

The company’s earnings per share increased by 35.8 percent to N14.7 from N10.8 in 2020.

If approved by shareholders at the Annual General Meeting, dividend amounting to N174.438 billion will be paid on April 28, 2022 at the rate of N8.57 per every 2 kobo ordinary share (subject to appropriate deduction of withholding tax) to shareholders whose names appear in the company’s Register of Members at the close of business on April 6, 2022 (bringing the total dividend for the year ended December 31, 2021 to N13.12).

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“I am pleased to report that your company recorded improved performance across all key financial metrics in 2021, demonstrating the strength and resilience of our business,” said Ernest Ndukwe, chairman of MTN Nigeria.

“Enhancing the shared value that we deliver across our ecosystem is a critical pillar of Ambition 2025 and sits at the heart of our approach to doing business,” said Karl Toriola, CEO of MTN Nigeria. ‘I am truly excited about what the future holds and the role that our Company can play in helping to achieve it.”

He said, “We are focused on building on the platform of success laid in 2021. Our return to positive subscriber net additions in Q4 2021 establishes a solid basis for growth in 2022 as we boost gross connections through our rural connectivity drive and customer value management initiatives. We are seeing structurally sustained data growth.

“As a result, we continue to invest in network and information technology infrastructure and have secured the relevant frequencies to meet the higher demand. This involves accelerating the expansion of our 4G coverage and providing home broadband to capture a significant share of market growth.”

According to Toriola, MTN Nigeria will commence the initial rollout of 5G services once the license acquisition process is complete to further deepen broadband penetration in Nigeria, enhance customer experience and unlock new revenue streams.

He said, “We have made significant progress with our super-agent licence, expanding the agent network across the country. However, as the business transits to MoMo PSB once the final approval is obtained, we remain focused on developing the range of additional services we can offer customers to drive digital and financial inclusion.

“We will sustain our drive for cost management across the business through our expense efficiency programme and strengthen our operations and financial position. Although the availability of foreign exchange remains a constraint, we will strive to minimise its impact on the business. In line with the accelerated growth we are seeing, we expect service revenue growth of at least 20 percent over the medium term.

“We will continue to focus on CAPEX efficiencies in delivering on the service revenue growth guidance, margin expansion, operating cash flow growth and improving returns to shareholders.”