MTN Nigeria’s Half-Year Revenue Approaches N1 Trillion on Boost in Data Revenue
Nigeria’s largest state-owned company by revenue, MTN Nigeria Communications Plc (MTNN), posted revenue of N950.1 billion for the first half of the year, which is a one-fifth increase from what it reported in the corresponding period of the year. last year.
Shares of the company gained 5.3% on Friday after the news.
With voice, the mobile operator’s main source of revenue improving by only 1.4%, real help was given to revenue growth through data revenue, as it grew more half or 119.7 billion naira. In other words, it was responsible for 75.4% of topline expansion.
CEO Karl Toriola said in a separate document, his company pledged to “invest N311.6 billion to accelerate the rollout of our 4G network, which now covers 75.3% (from 65.1% in the first half of 2021) of the population and represents 77.9% of traffic data (compared to 67.2% in the first half of 2021).
The main pressure point for earnings was Financial expenses – the expenses incurred by MTNN for the borrowing of funds – which increased by 41.2%.
This month, the local unit of Africa’s largest mobile network operator, MTN Group Limited, headquartered in Johannesburg, announcement a 200 billion naira debt plan. It will fund network expansion, “working capital management and general business purpose” and will be bond funded.
READ ALSO: MTN to pay shareholders an interim dividend of N114 billion
Pre-tax profit was 24.9% higher at N268.6 billion, while net profit stood at N181.6 billion, 28.1% higher than a year ago.
The telecommunications company highlighted in its earnings release note the achievement of its new MoMo PSB payment unit within the first seven weeks of launch, with 4.2 million fintech subscribers signed up for its wallet.
Momo PSB got off to a rocky start in its bid to gain first-start advantage over rival telecom operators after it Between the Nigerian payments market in May.
Momo PSB lost approximately 22.3 billion naira ($53.7 million) to pirate fraud.
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