Home Technology MTN Nigeria Boosted South African owned company by N1.06trn in 2018 —...

MTN Nigeria Boosted South African owned company by N1.06trn in 2018 — Report

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— MTN Group releases full year financial report.

The Report Shows ‘MTN Nigeria’ generated N1.06trn in 2018

MTN Nigeria lifted the South African Group to a brilliant financial performance in 2018 with N1.06 trillion (R42.2 billion) revenue generated from voice, data and other services in the year.

The telecom giant also accounted for the largest subscriptions across several operations of the Group.

According to the Group’s full year financial result released yesterday, MTN Nigeria, as at December 2018, had 58 million active subscriptions, which represented 25 per cent of the Group’s total subscriptions of 233 million.

A breakdown of the revenue from different categories of the company’s services showed that MTN realised N799 billion (R31.8 billion) from voice, while N153 billion (R6.1 billion) was attained from data. The result showed that N27 billion (R1.08 billion) was generated from its digital services, while N29 billion (R1.1 billion) was achieved from its fintech service. Revenue generated from ‘other’ services stood at N47.7 billion (R1.9 billion).

Based on the huge revenue recorded from Nigeria, the Group said it had revised its medium-term (three to five years) guidance on service revenue growth from upper-single-digit in constant currency terms to double-digit growth. While noting that the Nigeria market and its other operating countries across Africa still have huge potential for growth, the Group announced that it would be investing N196 billion (R7.8 billion) on its Nigeria operation this year.

“The markets in which we operate remain underpenetrated in terms of mobile services. As we benefit from Africa’s young and growing population, we expect to maintain growth in the core voice business over the medium term,” it stated. Meanwhile, the Group has expressed its readiness to list in its shares on the Nigerian Stock Exchange (NSE) this year. MTN, in a statement announcing its results, said it plans “to list by introduction on The Nigerian Stock Exchange during the first half of 2019 and is looking to simplify the capital structure ahead of this listing.”

“The company’s listing on the Exchange will create a new telecoms asset class for investors and provide an opportunity for a wider group of Nigerians to participate in our investment story. This will be achieved via a listing by introduction and will be followed by a public offer once market conditions are conducive. “Over time, and subject to market conditions, we anticipate that the participation of Nigerians in the ownership of the business will increase from around 20% to 35%,” it stated.

The Chief Executive Officer (CEO), MTN Nigeria, Ferdi Moolman, speaking on the company’s achievements said: “In 2018 we rebuilt the base; adding another six million Nigerians to our network, giving a total of 58 million people access to worldwide communication services.

“This growth was built on our sustained focus on customer centric delivery, ensuring that customers get much more value for their money. This included the deployment of proactive interventions to improve customer experience, together with the enhancement of network quality and coverage, and the optimization of our services portfolio.

“We also enabled an additional 8 million people to access the possibilities that the internet provides, bringing our total data subscriber base to 44 million, of which 18.7 million use more than five megabytes per month. “We are now even better positioned to ensure that everyone can access the benefits of a modern connected life.

We are excited to have been given the privilege to continue playing a role in facilitating this, and are grateful to our customers, our people, our partners and our regulator for making this possible.

“We understand how access to the opportunities enabled by the Internet can open up new industries even in the remotest areas of our country.

“Thus, we will continue to focus on delivering social innovations like mobile electricity, financial services for all; and leveraging our technology as a vehicle to enable high-impact mobile solutions in education, health and agriculture in our communities, urban and rural,” Moolman said.