MTN Nigeria Records 54% Growth Despite Customer Loss

MTN Nigeria Communications Plc has announced that its profit before tax jumped by 54.01% to N215.12bn in the first half of 2021 compared to the first half of 2020 despite reduction in its mobile subscriber base.

MTN disclosed on Friday that its mobile subscribers declined from 76 million to 68.9 million as a result of the regulatory restrictions on new SIM card sales and activations by the Federal Government.

Prime Business Africa had reported that major telecommunication companies in Nigeria, including MTN lost eight million data subscribers in three months due to suspension of SIM cards sales and registration, according to Nigeria Communications Commission (NCC).

In its unaudited financial statement, MTN revealed that data subscribers rose by 12.1% which amounted to 32.50million.

The company’s total revenue increased by 24.01% from N638.08bn in H1 2020 to N791.26bn in H1 2021 due to the rise in voice 13.11%, digital sales 61.81%, data subscriptions 48.29%, fintech business 48.21%, enterprise turnover 35.62%.

The company’s earnings before interest, taxes, depreciation and amortization rose by 27.56% to N417.21%, with EBITIDA margin at 52.73%.

MTN Nigeria’s cash flow improved by 19.60% to N230.77bn from N192.99bn in H1 2020.

The Chief Executive Officer, Karl Toriola in the report said that “In the first half of 2021, we made good progress strengthening the resilience of the business, managing the impact of the COVID-19 pandemic and enhancing support to our people, customers and other stakeholders.”

He also disclosed that the board of directors had approved an interim dividend of N4.55 kobo per share to be paid out of distributable net income, which represents a growth of 30% per N3.50kobo per share paid in H1 2020.