MTN Nigeria Communications Plc’s (NGX: MTNN) unaudited condensed consolidated and separate financial statements for the six months period ended 30 June 2022, shows the company narrowly missed hitting the N1 trillion mark for revenue earned in the period.
The company booked a total revenue of N950.08 billion, a 20 .1% growth from the N791.26 billion earned in H1 2022. This was largely due to strong growth in the revenue earned from data, which saw a 51.6% YoY growth.
The company’s mobile subscribers increase by 7.6% to 74.1 million, 5.7 million subscribers were added in the period. It’s active data users increased by 13.2% to 36.8 million, added 2.5 million active users in the period. In the fintech segment, its subscribers rose by 87.3% to 11.5 million, with 4.2 million registered (2.4 million active) MoMo wallets since launch of PSB on 19 May 2022.
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Commenting on the result, MTN Nigeria CEO, Karl Tariola said;
During the first half of 2022, we made good progress in strengthening the resilience of the business in the face of our increasingly challenging operating environment with rising energy, food and general inflation putting pressure on consumer spending.
The conflict in Ukraine as well as implementation of a “zero-COVID” policy in China, has also put a strain on global supply chains. To mitigate global supply chain and exchange rate risks, we accelerated capital expenditure for network expansion into the H1 2022.
We deployed capex of N311.6 billion to accelerate the rollout of our 4G network, which now covers 75.3% (compared to 65.1% in H1 2021) of the population and accounts for 77.9% of data traffic (compared to 67.2% in H1 2021).
Income Statement:
- Revenue: N950.08bn, compared to N791.26bn earned in H1 2021, an 20.1% YoY growth. Voice service accounted for N501.84bn of the revenue (H1 2021: N487.67bn), while N348.48 billion was earned from Data service revenue (H1 2021: N229.87 billion). Fintech brought in N40.43 billion revenue (H1 2021: N31.63 billion). SMS (N29.79 billion), Interconnect and roaming (N93.94 billion) and Handset & accessories (N2.23 billion) were other revenue sources that added to its Total revenue.
- Operating Profit: N352.31 billion, 28.7% growth on the N273.70 billion operating profit recorded in H1 2021.
- Finance Income & Cost: MTNN earned an income of N7.06 billion from interest on bank deposits, interest on amortized cost investments and net gain on FVTPL investments. It spent N90.74 billion mostly on interest on leases and borrowings.
- Profit Before Tax: N268.63 Billion, compared to N215.11 Billion in H1 2021 (24.9% YoY Growth).
- Profit After Tax: N181.62 Billion, compared to N141.82 Billion in H1 2021 (28.1% YoY Growth).
- Earnings Per Share: N8.92 (N6.97 in H1 2021).
Balance Sheet:
- Total Assets: N2.52 Billion, compared to N2.25 Billion as at 31st December 2021. Of these assets, N890.35bn is on property, plant and equipment under non-current assets, while N166.65bn is current asset being cash and ban balances. The company’s inventory stood at N1.53 billion, while its trade and other receivables went up from N127.23bn to N151.11bn.
- Total Liabilities: N2.25 trillion, compared to N2.25 trillion as at 31st December 2021. MTNN’s long term borrowing went up from N152.83bn to N317.86bn, while its short term borrowing dropped from N340.42bn to N328.24bn. The trade and other payables increased slightly from N144.16bn as at 31 Dec. 2021 to N204.58bn.
- Shareholders’ Fund: stood at N269.53 Billion, an increase from N264.98 Billion as at 31st December 2021.
- Retained earnings: stood at N254.11 billion, an increase from N246.47 billion as at 31st December 2021.
Cashflow:
- Operating activities: N229.00 billion was generated from operating activities, against N225.55 billion generated in H1 2021.
- Investing activities: N396.81 billion was used for investing activities, against N286.65 billion used in H1 2021. MTNN spent N171.51 billion and N151.01 billion in the acquisition of property, plat and equipment and acquisition of other intangible assets respectively.
- Financing activities: N84.23 billion was generated from financing activities against N15.63 billion generated in H1 2021.
- Cash and cash equivalents at the end of the period was N166.79 billion (H1 2021: N230.01 billion).
For the half year period ended 30 June, 2022, MTNN in a corporate action released to the Nigerian Exchange Limited, announced that the Board of Directors of the company has proposed an interim dividend of N5.60 to be paid to shareholders for every 20 kobo share held.
About the Company
MTN Nigeria Communications Plc formerly MTN Nigeria Communications Limited, together with its subsidiaries carry on the business of building and operating GSM Cellular Network Systems and other related services nationwide in Nigeria.
MTN Nigeria Communications Plc subsidiaries are XS Broadband Limited, Visafone Communications Limited, Yello Digital Financial Services Limited and MoMo Payment Service Bank Limited. Their principal activities are the provision of broadband fixed wireless access service, high quality telecommunication services and mobile financial services (fintech) respectively. Visafone Communications Limited is currently undergoing liquidation.
During the year, a new subsidiary MoMo Payment Service Bank Limited (MoMo PSB) commenced operations. MoMo PSB is licensed by
Central Bank of Nigeria (CBN) to facilitate high-volume low-value transactions in remittance services, micro-savings and withdrawal services in a secured technology-driven environment to further deepen financial inclusion in Nigeria. MoMo PSB currently has authorised share capital of 5 billion ordinary shares issued and fully paid, MTN Nigeria has 80% shareholding while Acxani Capital Limited has 20% holding serving as the non-controlling interest.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur