MTN Nigeria Reports Record Half-year Revenues of N638 billion in 2020

MTN Nigeria

A report by a leading financial resource company based in Nigeria, Nairametrics, revealed MTN Nigeria reported a half-year revenues of N638 billion in 2020 compared to N566.9 billion reported same period last year. The 12.5% pop was driven by growth in data revenues in the first and second quarters of the year.

The company reported a 49% growth in data revenues in the second quarter of 2020 as the coronavirus lockdown has made more Nigerians resort to online activities more than before thereby making more data subscriptions.

The revenues reported in the first half of 2020 now translate to about N100 billion monthly in revenues, a company and Nigerian Stock Market record, according to Nairametrics Research. Revenues averaged N97 billion monthly in 2019 and N86.5 billion in 2018.

Key highlights of the reports states:

In the second quarter of 2020 total revenues rose 8.5% to N308.9 billion driven largely by higher data revenues.

Data revenues jumped from N56.7 billion to N79.9 billion in the quarter under review confirming the growing reliance Nigerians have on data for communication.

Call revenues, the company’s mainstay suffered a 1% drop to N176.2 billion suggesting a drop in its average revenue per user. Call revenues make up about 68% of its service revenues. Mobile subscriber growth was just 3.8% in the quarter.

Revenues from its Fintech division fell 7.7% to N10.2 billion in the quarter. It however rose by 29.6% in the first half of 2020 compared to the year before.

MTN has aggressively pushed its Fintech business leveraging on its economies of scale to gobble market share.

Pre-tax Profits for the quarter was N62.2 billion down 13.4% YoY.

Earnings per share N2.11/N2.4 15.6% up QoQ. The earnings per share dip was due to higher operating expenses

MTN Nigeria explains that the growth in data revenue was driven by growth in data usage and traffic. The company added 2 million new data subscribers in the quarter compared to 1.8 million in the first quarter.

The company also explained that data traffic rose 27.2% QoQ (141.2% YoY) while usage measured in megabyte per user rose 23.3% QoQ (76% YoY).

MTN also claims it brought in 4 million new smartphones in the first half of 2020.

In its Fintech division, the company explained its growth was driven by its airtime lending service and expansion in its agent network.

Its total number of registered agents is now 220,000 while total transaction volume has risen to 14.6 million driven by its 2.2 million-plus subscribers.

MTN also complained that port congestion and scarcity of foreign exchange rate affected its capital expenditure plans, especially in the first half of the year.

Capital expenditure for the quarter was N47.5 billion compared to N40 billion same period in 2020. However, on a half-year basis, capital expenditure is down 21% to N76 billion.

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