MTN Nigeria posts N94.9bn PAT in H1 2020 Results

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MTN Nigeria Communications Pic, MTN Nigeria, one of Africa’s largest providers of communications services which has a clear vision to lead the delivery of a bold, new digital world. today announces its unaudited results for the six months ended 30 June 2020.

Salient features:

  • Mobile subscribers increased by 6.8 million to 71.1 million
  • Active data users increased by 3.8 million to 29.0 million
  • Service revenue increased by 12.696 to NGN637. 0 billion
  • Earnings before interest tax, depreciation and amortisation (EBITDA) grew by 8.296 to N327.1 billion
  • EBITDA margin declined by 2.0 pp to 51.3%
  • Profit before tax (PBT) declined by 2.096 to N139.6 billion
  • Earnings per share (EPS) declined by 4.796 to N4.66kobo
  • Interim dividend per share of N3.50 kobo

Unless otherwise stated. financial information is year-on-year (YoY. H1 2020 versus H1 2019) and nonfinancial information is year-ro-dare (lune 2020 versus December 2019).

MTN Nigeria CEO, Ferdi Moolman comments:

“Following a strong 5rs!‘ quarter, we experienced a challenging operating environment in the second quarter characterised by COVID-l9 induced lockdowns and the broader macroeconomic impact it has had. Despite this we have maintained double-digit service revenue growth of 12. 6% for H1, driven by strong growth in our key revenue lines.

Dara revenue rose by 57.6% supported by an increase in data users and traffic. Revenue from digital and fintech services rose by 121.8% and 29.6% respectively. while voice revenue growth was 2.896 amidst a change in frame pattern following the Iockdowns. However, costs also increased leading to an overall decline in profit before tax and earnings per share.

In the first half of the year, we achieved 6.8 million in net additions to connect over 71.1 million customers to our network. We also connected 3.8 million new users to the internet, bringing our active data subscribers to 29 million.

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Our MoMo subscribers increased by 1.6 million to 2.2 million the majority of which were in 02. We prioritised the upgrade of our network capacity to accommodate growth in traffic while continuing to expand 4G network coverage albeit at a slower pace given the constraints presented by COVID-I9.

As part of several initiatives under our Y’ello Hope Package launched in O1, we offered our subscribers free SMS targeted at providing value to the vulnerable in the society. It is pleasing that 75% of our subscribers benefitted, sending over 4.3 billion messages through the SMS platform. We also offered free money transfers using the MOMO Agent Network with over 100,000 customers utilising the service.

During the period, we changed the accounting treatment of the Value Added Tax (VAT) component of our lease payments resulting in some impact on margins. In addition to this, the combined effect of the foreign exchange rate adjustments. the 2.596 increase in value-added tax and the associated costs of COVID-19 initiatives have impacted margins.

As a result, growth in EBITDA was 8.2% in H1, while E BIT DA margin declined by 2.0pp to 51.3% and profit before tax and EPS declined by 2.096 and 4. 796. respectively.

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In line with our dividend policy, the Board of Directors has approved an interim dividend of N350 kobo per share to be paid out of distributable net income.”

Operational review

We recorded a 15.6% growth YoY in our‘ mobile subscriber base to 71.1 million, providing support for voice revenue. Voice revenue. accounting for 67.9% of service revenue and up by 2.896, remained in 21‘th in H1 in an environment where the effect of lockdowns impacted traffic, particularly in April and May.

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Encouragingly, we have started to see a recovery following the gradual easing of lockdown. The continued deployment of additional SIM registration devices, rural telephony initiatives and targeted offers using our customer value management (CVM) I’oolkil’ will continue to provide support for continued growth in voice revenue.

Data revenue. making up 24.2% of service revenue. continued to grow. achieving 57.6%. This was realised through increased data subscribers, improved 4G penetration and enhanced network capacity to support traffic growth due to the lockdown.

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Overall, PAT and EPS declined by 4.7% a piece. reflecting an increase in taxation mainly due to over-investment allowance and exempt income.

Treatment of VAT on the Lease Payments

During the period. we reviewed the treatment of non-recoverable VAT on tease payments which was previously included in the measurement of the lease liability and right of use asset and was depreciated over the leasing term As practice has developed, we have reassessed this treatment and excluded the nonrecoverable VAT from both the lease stability and right of use asset, and accounted for it as an expense over the lease period. We applied the revised accounting policy retrospectively from the date of IFRS 16 adoption. This resulted in 00.2pp decline in EBITDA margin in H1.

Outlook

The early trends emerging from the easing of lockdown restrictions indicate a steady normalisation of our revenue mix.

However, it remains unclear how this will continue to evolve for the remainder of the year given the ongoing uncertainties presented by the COVlD-19 pandemic including its potential effects on the economy and our customers White we expect the operating environment to remain challenging.

We will continue to build on our operational and financial resilience and execute on our strategy to position the business to sustain growth over the medium-term.

We will continue to invest in our networked ramp up our 4G rollout, which was slowed down by the impact of COVtD-IQ during HI.

We have prioritised the work to improve capacity and expand coverage to capture new cities and broaden rural connectivity this is important as traffic on our network continues to increase. We have built up a solid inventory of critical parts during the Iockctown period, and are welt prepared in the event of further disruptions.

We remain committed to expanding our fintech and digital service offerings. as we come to expand our MoMo Agent network with the conversion of our existing airtime agents Into MoMo agents. and broaden our service offerings We remain on track to achieve our agent network target of 300.000 by yeor~end.

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The environment remains, fluid and we are assessing the various impacts on our business on an ongoing basis and implementing mitigating interventions as necessary.

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MTN Nigeria posts N94.9bn PAT in H1 2020 Results - Brand SpurMTN Nigeria posts N94.9bn PAT in H1 2020 Results - Brand Spur

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MTN Nigeria posts N94.9bn PAT in H1 2020 Results - Brand SpurMTN Nigeria posts N94.9bn PAT in H1 2020 Results - Brand Spur

Latest News

Next Meats, Purveyor of the World’s First Plant-based Yakiniku Meats, Is Now in Singapore

The Tokyo-based startup makes its debut in the alt-protein hotspot of Singapore

 

  • Next Meats has collaborated with Aburi-EN to deliver two new meal sets
  • Made with soybean proteins, the Kalbi contains no chemical additives or animal ingredients


SINGAPORE - Media OutReach - 14 April 2021 - Next Meats, a purveyor of the world's first plant-based yakiniku meats, is making its debut in the alternative protein hotspot, Singapore! The Japanese alternative meat company has collaborated this time with popular Japanese restaurant Aburi-EN, which will offer two types of set meals using the NEXT Kalbi (boneless short rib) for the very first time. Made largely from soy proteins, the NEXT Kalbi contains double the amount of protein and half the fats than that of regular meat and even more, it does not contain any chemical additives or cholesterol due to its lack of animal ingredients. Now, Singaporeans can enjoy yakiniku without the guilt!


MTN Nigeria posts N94.9bn PAT in H1 2020 Results - Brand Spur

From left to right: Premium Kalbi Don Set and Stamina Teishouku Set

The two new menus available at Aburi-EN are the Kalbi Don Set (S$13.80) and the Stamina Teishoku (S$15.80) — which are available for a limited time only. Next Meats has specifically chosen to work with Aburi-EN as they are a Japanese grilled-meat specialist. The two menus are the culmination of many months of research and development, and they will also be Aburi-EN's first-ever plant-based dishes.


MTN Nigeria posts N94.9bn PAT in H1 2020 Results - Brand Spur

For the Kalbi Don Set, Next Meat's Kalbi is grilled and served atop a bowl of fragrant Japanese steamed rice. Equally indulgent, the Stamina Teishoku features the Kalbi stir-fried with cabbage along with egg imported from Okinawa. The meat is then served with fragrant Japanese steamed rice, salad, pickles and miso soup. For both dishes, the meats are glazed with a special homemade sauce that packs an irresistible umami punch.

Both the Kalbi Don Set and Stamina Teishoku will be available at all Aburi-EN stores from April to July 2021.

An advocate of sustainable food production and better food security

The NEXT Kalbi is one of Next Meats' innovative offerings, which includes other plant-based delicacies such as the NEXT burger and NEXT gyudon (beef bowl). The company champions the importance of saving the planet and humanity through reducing the emission of greenhouse gases (which is produced from meat consumption and animal agriculture) and utilizing biotechnology to combat protein deficiency.

Through extensive research and development, Next Meats has culminated the knowhow on using molecular binding to mould vegetable proteins from powder. Buoyed by state-of-the-art, proprietary technologies, the company has successfully created vegan substitutes that replicate the texture of real meat.

About Next Meats

Hailing from Tokyo, Next Meats is a food-tech venture company that specialises in the research and development of Japanese-style alternative meat products. Its journey of product development began in 2017, and the company was officially established in 2020. Its portfolio of products includes plant-based burger patties, gyudon and yakiniku meats.

Social Media for Next Meats

Facebook: /nextmeats.singapore

Instagram: @nextmeats_singapore

Hashtags: #nextmeats #nextmeats_sg #japaneseplantbased


About Aburi-EN

Aburi-EN is Singapore's leading Japanese Grill restaurant chain, best known for delicious high quality grilled donburi bowls. Signature dishes include the Premium Buta Don with grilled chestnut-fed pork, Wagyu Karubi Don, and the Wagyu Stamina Don, made using A4/A5 Miyazaki Wagyu, which has won Japan's "National Wagyu Award" for 3 consecutive years, among many others. The homemade sauces give the meats and dishes an extra umami-ness. Aburi-EN is also known for affordable highballs and Japanese sours, which pair perfectly with the Aburi dishes.

Social Media for Aburi-EN

Facebook: /aburiensg

Instagram: @aburien.sg

Hashtags: #aburiensg #aburiendonburi #aburienjapanesegrill

Outlets

- Isetan Scotts:

350 Orchard Rd, #01-K1 Shaw House, Singapore 238868

- Causeway Point

1 Woodlands Square, #02-09B Causeway Point, Singapore 738099

- Jem

50 Jurong Gateway Rd, #01-04 Jem, Singapore 608549

- Vivo City

1 Harbourfront Walk, #01-159/160 VivoCity, Singapore 098585

- Novena Square

238 Thomson Rd, #01-89/90, Singapore 307683

- Guoco Tower

1 Wallich St, #B2 - 09, Singapore 078884

- Orchard Central

181 Orchard Central, Central, #01-16 Orchard, 238896

- Suntec City

3 Temasek Blvd, #B1-121 Suntec City Mall, Singapore 038983

- Nex

23 Serangoon Central, #01-63/64/65 Nex, Singapore 556083

Operating Hours

11am – 10pm, Daily

MTN Nigeria posts N94.9bn PAT in H1 2020 Results - Brand Spur
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