MTN Nigeria posts 80% profit rise, loses 7.6 million subscribers

MTN Nigeria simulated ₦243.10 ▲0.56% Communications Plc has posted a profit before tax of N112.14 billion for the second quarter of the 2021 financial year, up 79.9 percent from N62.33 billion in the same period of 2020.

The telecommunications company, which announced its unaudited results on Friday, said its profit after tax rose to N68.09 billion from N42.80 billion.

Its revenue increased by 31.4 percent to N405.95 billion in Q2 2021 from N308.90 billion.

It said its mobile subscribers declined by 7.6 million to 68.9 million, impacted by the regulatory restrictions on new SIM sales and activations, while active data users dropped by about 52,000 to 32.5 million.

The telco said its capital expenditure was up by 39.1 percent to N186.4 billion, while dividend per share rose by 30 percent to N4.55 kobo.

Commenting on the results, the Chief Executive Officer, MTN Nigeria, Karl Toriola said, “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.

“We extended our commitment to the Coalition Against Covid-19 with an additional N3 billion contribution over a two-year period, half of which has already been paid. This is in support of efforts to promote the health and security of Nigerians, as we navigate our way through the pandemic.”

He said the company had initiated plans to inaugurate a purpose-built, state-of-the-art MTN Head Office, designed to “act as a central hub for our network, a catalyst for creativity and innovation, and a showcase for the flexible working structures that are driving efficiency gains in this new normal working environment.”

Toriola said, “Following MTN Group’s stated intention to sell down up to 14% of its investment in MTN Nigeria, subject to market conditions over the medium-term, MTN Nigeria’s shareholders approved an equity shelf programme at the last Annual General Meeting.

“This will facilitate a process to increase ownership of the company by more Nigerian retail and institutional investors. Alongside this, we further localised our predominantly Nigerian management team with the appointment of Nigerians to two key senior positions (Chief Marketing Officer and Chief Information Officer) previously held by expatriates.”