MTN Nigeria Declares Profit Before Tax Of N139.6bn, To Pay N71.2bn Interim Dividend

MTN Nigeria Communications Plc has declared a profit before tax (PBT) of N139.57 billion in its unaudited half-year result for the period ended June 30, 2020.

Also, the Company proposed an interim dividend of N71.24 billion, representing N3.50 kobo per two kobo ordinary share, making MTNN, the first company to offer interim dividend as investors await announcements from the other regular interim dividend paying stocks.

The half-year released on the Nigerian Stock Exchange (NSE) revealed that profit before tax fell by two per cent from N142.404 billion to N139.57 billion, while net profit stood at N94.877 billion, a 14.5 percent decline from the N99.537 billion reported in the corresponding period of 2019.

Further analysis showed that the company reported a 15.6 percent growth in mobile subscriber base to 71.1 million. Total revenue for the period climbed by N566.946 billion in the first half of 2019, to N638.075 billion, while digital revenue soared from N1.92 billion to N4.258 billion.

Expenses increased by 17.5 percent from N264.626 billion to N311.014 billion, while net finance costs rose 38.2 percent from N46.996 billion to N64.966 billion.

Speaking on the results, CEO, MTN Nigeria, Ferdi Moolman said “Following a strong first quarter, we experienced a challenging operating environment in the second quarter characterised by COVID-19 induced lock downs and the broader macro-economic impact it has had. Despite this, we have maintained double-digit service revenue growth of 12.6 per cent for H1, driven by strong growth in our key revenue lines.”

Moolman added that in H1, the Company achieved 6.8 million in net additions to connect over 71.1 million customers to its network and also connected 3.8 million new users to the internet, bringing its active data subscribers to 29 million.

On outlook, the CEO said “The early trends emerging from the easing of lock down restrictions indicate a steady normalisation of our revenue mix However, It remains unclear how this will continue to evolve for the remainder of the year giving the ongoing uncertainties presented by the COVID-19 pandemic on the economy and on the customers.

“While we expect the operating environment to remain challenging, we will continue to build on our operational and financial resilience and execute on our strategy to position the business to sustain growth over the medium-term and we also remain on track to achieve our agent network target of 300,000 by year-end.”

MTN Nigeria’s Road to Becoming a Publicly Quoted Company

Back in May 2019, Africa’s biggest mobile operator, MTN received the green light to list on the Nigerian unit on the Nigerian Stock Exchange. This took the value of its biggest market to 1.8 trillion Naira as at then.

The share price ended at 108.9 Naira after two days of its introduction on the Nigerian Stock Exchange.

The telecoms giant’s stock of 20,354,513,050 ordinary shares was listed by Introduction on the Premium Board of The Nigerian Stock Exchange on, Thursday, 16 May 2019.

The listing of shares of MTN at N90 per share lifted the market capitalisation of exchange by N1.8 trillion to close the day at N12.5 trillion.