Nigeria’s MTN reported revenue of N638 billion for the first half of 2020, compared with N569.6 billion in the same period last year. The 12.5% increase was due to the increase in data revenue in the first and second quarters of this year. The company reported that due to the ensuing Covid-19 economic shutdown, its Nigerian customers consume more data, so data revenue in the second quarter of 2020 increased by 49%.
According to data from TROPICS NIGERIA Research, the revenue reported in the first half of 2020 is now converted into a monthly revenue of about 100 billion naira, which is a record of a company and the Nigerian stock market. The average monthly income in 2019 was 97 billion and in 2018 it was 86.5 billion naira.
- The company explains the growth in data revenue was driven by growth in data usage and traffic. The company added 2 million new data subscribers in the quarter compared to 1.8 million in the first quarter.
- The company also explained that data traffic rose 27.2% QoQ (141.2% YoY) while usage measured in megabyte per user rose 23.3% QoQ (76% YoY).
- MTN also claims it brought in 4 million new smartphones in the first half of 2020.
- In its Fintech division, the company explained its growth was driven by its airtime lending service and expansion in its agent network.
- Its total number of registered agents is now 220,000 while total transaction volume has risen to 14.6 million driven by its 2.2 million-plus subscribers.
- MTN also complained that port congestion and scarcity of foreign exchange rates affected its capital expenditure plans, especially in the first half of the year.
- Capital expenditure for the quarter was N47.5 billion compared to N40 billion in the same period in 2020. However, on a half-year basis, capital expenditure is down 21% to N76 billion.
- In the second quarter of 2020 total revenues rose 8.5% to N308.9 billion driven largely by higher data revenues. Data revenues jumped from N56.7 billion to N79.9 billion in the quarter under review confirming the growing reliance Nigerians have on data for communication.
- Call revenues, the company’s mainstay suffered a 1% drop to N176.2 billion suggesting a drop in its average revenue per user. Call revenues make up about 68% of its service revenues. Mobile subscriber growth was just 3.8% in the quarter.
- Revenues from its Fintech division fell from 7.7% to N10.2 billion in the quarter. It however rose by 29.6% in the first half of 2020 compared to the year before.
- MTN has aggressively pushed its Fintech business leveraging on its economies of scale to gobble market share.
- Pre-tax Profits for the quarter were N62.2 billion down 13.4% YoY.
- Earnings per share N2.11/N2.4 15.6% up QoQ. The earnings per share dip were due to higher operating expenses