Breaking News

Despite Losing 7.6 Million Subscribers, MTN Grows Revenue By 24.1% To N790.3bn

Oluwasina Phillip

MTN Nigeria has declared revenue of N790.3 billion, representing an increase of 24.1 per cent in its unedited half year results for the period that ended on June 30, 2021.

The company’s Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA), grew by 27.6 per cent to reach N417.2 billion. The EBITDA margin improved by 1.4 percentage points to 52.7 per cent and its Capital Expenditure (CAPEX) was up by 39.1 per cent to reach N186.4 billion.

Its dividend per share rose to N4.55 kobo, which is about 30 per cent increase.

The telecoms company, however, suffered losses in the number of mobile subscribers and data subscriptions.

According to the report, mobile subscribers declined by 7.6 million to 68.9 million, impacted by the regulatory restrictions on new SIM sales and activations.
Active data users also declined by approximately 52,000 to 32.5 million.

Giving details of the telecoms company’s operational review for the half year, MTN Nigeria CEO, Mr. Karl Toriola said: “Service revenue grew by 24.1 per cent, Year-on-Year (YoY), driven by the sustained growth in data and also partly due to the lower base in comparative 2020 voice revenue that resulted from lockdowns during that period.

“Voice revenue grew by 13.1 per cent, benefitting from an 11.8 per cent increase in traffic and our customer value management (CVM) initiatives. The impact on voice revenue from the industry-wide suspension of new SIM registration was partly offset by higher usage in our active SIM base as well as migration to a higher quality of experience.

Data revenue continued the positive momentum from H2 2020, rising by 48.3 per cent,” he explained.
He said this was driven by increased usage from the existing base, supported by the acceleration in our 4G rollout and enhanced network capacity following the acquisition and activation of additional 800MHz spectrum in Q1.

The results showed that data traffic rose by 83.0 per cent YoY, while smartphone penetration was up by 5.8pp to 49.3 per cent.

About Editor

Check Also

Google’s 25-year journey from dorm to internet dominance

More than 25 years ago, two students at Stanford University brainstormed in their dormitory and …

Leave a Reply