MTN Nigeria Communications Plc grew its revenue by 21.6% to more than N2 trillion in the 2022, and its profit for the year by 21.1% to over N360 billion, according to the audited consolidated and separate financial statements for the year ended 31 December 2022 released by the company. The first listed company on the Nigerian Exchange to report N2 trillion revenue.
Income statement:
Revenue increased by 21.6% to N2.01 trillion in 2022 from N1.65 trillion in 2021.
A major standout on the expense column is the ‘Direct network operating costs’ which increased to N459.03 billion in 2022 from N388.83 billion in 2021.
A further review of the income statement showed that the ‘Direct network operating costs’ comprises of N51.2 billion for ‘regulatory fees,’ N2.69 billion for ‘annual numbering plan,’ N331.85 billion for ‘BTS leases,’ and N73.30 billion for ‘network maintenance.’
“Following the adoption of IFRS 16 leases, BTS lease expense relating to the non-lease components (power and maintenance) of the tower lease contracts are recognised as an expense in profit or loss as they are incurred,” the company said.
The company’s operating expenses rose to N104.63 billion from N72.81 billion in 2021.
N180.85 billion was recorded as ‘Depreciation of property and equipment’ in 2022 against N162.54 billion in 2021.
Profit for the year attributable to the owners of the company rose 21.1% to N361.53 billion in 2022 from N298.65 in 2021.
Earnings per share rose to N17.79 in 2022 from N14.67 in 2021.
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The Board of Directors recommended the payment of a final dividend of N10.00 per ordinary share of 2 kobo each subject to shareholders’ approval at the forthcoming Annual General Meeting (AGM). If the proposed final dividend is approved, the total dividend for the financial year ended 31 December 2022 will be N15.60 per share of 2 kobo each, subject to appropriate withholding tax.
An interim dividend of N5.60 kobo per ordinary share was paid for the period ended 30 June 2022.
During the year, mobile subscribers increased by 10.5% to 75.6 million with 7.2 million subscribers added in 2022.
Active data users increased by 15.3% to 39.5 million, adding 5.2 million active users in 2022
Active fintech subscribers rose by 57.5% to 14.9 million, with 2.0 million active mobile money (MoMo) wallets since the launch of PSB.
Balance sheet:
The company’s total assets increased to N2.72 trillion as at 31st December 2022 from N2.26 trillion as 31st December 2021.
Major components of the assets:
- Property and equipment: N928.36 billion in 2022, up from N774.11 billion in 2021
- Right of use assets: N652.11 billion in 2022 from N613.81 in 2021.
- Cash and cash equivalents: N349.50 billion in 2022 from N260.89 billion
Total liabilities increased to N2.38 trillion in 2022 from N2.00 trillion.
Major components of liabilities:
- Lease liabilities: N662.66 billion in 2022 from N628.33 billion in 2021.
- Trade and other payables: N514.89 billion in 2022 from N443.90 billion in 2021.
- Non-current and current borrowings stood at N439.46 billion and N250.21 billion respectively in 2022.
Equity attributable to owners of the company increased to N334.24 billion in 2022 from N264.98 in 2021, with retained profit representing N319.82 of the equity.
Cash Flow
- Net cash of N565.89 billion was generated from operating activities.
- Net cash of N485.98 billion was used in investing activities.
- Net cash of N27.67 billion was generated from financing activities against N142.26 billion used in 2021.
About MTN Nigeria Communications Plc
MTN Nigeria Communications Plc (the Company) was incorporated on 8 November 2000 as a private limited liability company. The Company was granted a licence by the Nigerian Communications Commission on 9 February 2001 to undertake the business of building and operating GSM Cellular Network Systems and other related services nation-wide in Nigeria. The Company commenced operations on 8 August 2001 (commercial launch date). Currently, the Company holds a Unified Access Service License (UASL) in addition to a 2GHz Spectrum and Digital Terrestrial TV Broadcasting licence, in addition to others shown in note 18.7.
On 18 April 2019, MTN Nigeria Communications Limited re-registered as a public limited company, MTN Nigeria Communications Plc. The Company was listed by introduction on the Premium Board of the Nigerian Stock Exchange on 16 May 2019. The Company’s registered office is at 4, Aromire road, off Alfred Rewane Road, Ikoyi Lagos.
MTN Nigeria Communications Plc’s 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 respectively. The Group’s holding
company is MTN International (Mauritius) Limited, a company incorporated in the Republic of Mauritius and its ultimate holding company is MTN Group Limited, a company incorporated in South Africa.
During the year, the Company established a new subsidiary MoMo Payment Service Bank Limited (MoMo PSB). 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 commenced operations during the year and MTNN holds 80% of the voting shares while Axcani Limited holds 20% non- controlling interest.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
