MTN Nigeria published its full-year (FY) 2019 earnings report with revenue soaring by 6.67% to N1.169 trillion from N1.039 trillion in FY 2018.
We noted a 42.34% spike in data service while Interconnect, roaming and value-added services spurred by 21.91% and 15.16% respectively.
Furthermore, we saw revenue drop across digital and SMS segment. According to management, the increment seen across the data segment is due to increased 4G coverage as a result of expansion in its 4G spectrum across the country. MTNN believes Nigeria demographics will continue to drive its topline as it persists in its penetration drive.
In a bid to bolster its revenue, MTNN saw its subscribers grow by 6.1 million to record 64.3 million at the end of the year against the plunge in subscribers witnessed over Q3 2019.
Also, we noted a marginal decline in operational expense due to a major reduction in lease expense. Finance income returned softer, however, we saw a major 86.11% spike in finance cost due to interest expense originating from finance lease. Nonetheless, Profit before tax and Profit after tax settled the year 31.07% and 38.73% higher than FY 2018.
On that note, MTNN declared a dividend of N4.43 per share indicating a dividend yield of 3.85%.