Business Hilights
Tracking Nigeria's Headline Business News Online

Just in: MTN Nigeria’s H1 unaudited results show jump in data, fintech revenues

…As anti- Xenophobic protests spread across Nigeria

MTN Nigeria’s half year unaudited results released Friday has shown strong control of the nation’s data, fintech and voice market segments for the six months ended June 30, 2019.

The result reflected the January adoption of the IFRS 16 accounting standards which is in line with global best practices.

Hilights showed that whereas data revenue jumped by 31.7 per cent to lead earnings, Fintech revenue followed closely by 21.2 per cent as service revenue increased by 12.2 per cent leaving voice revenue at still an encouraging 11.4 per cent.

MTN Nigeria Ferdie-Moolman
Fredi Moolman, Chief Executive of MTN Nigeria

However, within the period under review, the telecoms giant experienced a digital revenue drop by 64.5 per cent even as EBITDA grew by 40 per cent (IAS17: 16.2% to N253.0bn), leaving margin increase by 10.7pp to 53.8 per cent.

In his assessment, MTN Nigeria CEO, Mr Fredi Moolman, said “We made significant network investment to improve network quality and expand out 4G network coverage. 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”.

While recalling that the company had a successful listing at the Nigerian Stock Exchange (NSE) in May, Moolman averred that the recent Super-Agent licence obtained from the apex bank will further deepen fintech services offerings across the federation.

On the outlook for the remaining part of the financial year, MTN Nigeria averred that “Our overriding priority for the rest of the year is to focus on our bright strategy to build a sustainable business and create value for customers. We will continue to progress in the second half of the year making improvements to our network experience, subscriber growth and enhance operational efficiency”.

MTN Ndukwe Dozie
Outgoing chairman of MTN Nigeria, Dr Pascal Dozie and Chairman designate, Dr Ernest Ndukwe

Only few days ago, the company announced the retiring of its board chairman, Dr Pascal Dozie, who had served for about 18 years alongside other directors. The board, according to MTN Nigeria will effective September, be chaired by former EVC of NCC and telecoms administrator of global repute, Engr Ernest Ndukwe and other industry icons including former Minister of Communications, Mrs Omobola Johnson plus tax magnet, Ms Ifueko Omoigui-Okauru and others.

Just the telecom giant is cruising on a steady growth trajectory, strong indications emerged Friday that the spreading nationwide protests by Nigerian youths dominated by students over surging xenophobic attacks on Nigerians and her interests in South Africa, have touched some interests of the company in Kaduna, Benue as MTN offices were shut on Thursday.

Friday morning, there are signals that protests have spread to states like Anambra and others.

The students alleged that South Africa had allowed Nigerians to suffer all forms of discrimination, including murders and looting of their businesses.

They further decried that available records have shown that the level of attacks on Nigerians is on astronomical rise, with the recent killing of another Nigerian by South Africans, on July 20, increasing the number to 118 in the last two years. Out of this number, 13 were reportedly killed by South African Police in an extra-Judicial manner.

MTN Nigeria is yet to make any official statement on the fallouts of the spreading anti-South African interests’ protests by National Association of Nigerian Students (NANS).