Newly listed MTN Nigeria posts strong results, adds 3.3 million customers to maintain market lead

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Newly listed MTN Nigeria has posted strong maiden results to maintain its position as Nigeria’s leading telecom company. Its operating margins expanded significantly underscored by rising revenue and subscriptions. The telco recorded an additional 3.3 million customers to its network in the six months to June to strengthen its market grip by raising its subscriber base to 61.5 million.

MTN Nigeria, at the weekend, released its interim results since listing on the Nigerian Stock Exchange (NSE) in May, 2019 and said significant network investments and improvement in network quality as well as expansion of its 4G coverage have ensured wide positive growth. The Nigerian operation is the biggest subsidiary of the MTN Group.

According to the release, for the six months ended 30 June 2019, earnings before interest, tax, depreciation and amortisation surged by 40% to N304.9-billion, with Ebitda margin growing by 10.7 percentage points to 53.8%.

Also, service revenue increased by 12.2%, voice revenue grew by 11.4% and data revenue jumped by 31.7% year on year. Digital revenue spiked 64.5%. Subscriber numbers increased by 3.3 million to 61.5 million.

“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 CEO of MTN Nigeria, Ferdi Moolman said Moolman said.

New board

A recent boardroom shakeup in its Nigerian operations saw the appointment of former CEO of the Nigerian Communications Commission (NCC), Ernest Ndukwe as chairman-designate of the telecom giant. Ndukwe will by September 2, 2019 effectively replace Pascal Dozie, founder of former Diamond Bank now part of Access Bank. Dozie has led MTN Nigeria as board chairman for nearly 20 years.

The new board will also have as members, former Nigerian pension regulatory chief Muhammad Ahmad, ex-Minister for Communication, Mrs. Omobola Johnson and ex-banker Andrew Alli.

Ndukwe’s board will drive MTN Nigeria as a listed company having entered the NSE last May in a two trillion naira ($6.54 billion) debut.

MTN Nigeria was listed on the Nigerian Stock Exchange as part of the settlement of a previous US$1-billion fine by Nigerian authorities. According to Reuters, that listing turned the telecoms company into the exchange’s second-largest stock by market value. Majority of the shares are owned by South Africa’s MTN Group.

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