Nigeria’s largest telecommunications company MTN became the first publicly listed company to hit the N2 trillion mark in revenues.
MTN first cross one trillion naira in revenues in 2019 meaning it has taken the company just three years to surpass N2 trillion in revenues.
The company released its 2022 audited financial statements posting revenue of N2 trillion a 21.6% rise from the N1.6 trillion reported in 2021 (which at the time was also record-breaking).
Never in the history of Nigeria has a quoted company reported revenues of N2 trillion in a financial year. MTN becomes the first, while also reporting a blistering N358.8 billion in profit after tax.
The company’s profits delivered a whopping return on average equity of 119.5% also one of the highest we have ever seen since Nairametrics started keeping track of company financial statements performance.
MTN also said it will be paying a dividend of N10 per share taking its total dividend to N15.5 per share, which delivers an indicative dividend yield of 6.68%.
How MTN According to its CEO, Karl Toriola explained that the high inflation rate led to a dip in consumer spending during the year. However, the company was still able to record growth across its key business segments supported largely by strategic investments.
“Our strong commercial momentum, supported by an accelerated investment in our network, enabled growth across all revenue lines. As a result, we recorded a 21.5% increase in service revenue, above the average inflation rate and in line with our medium-term growth guidance. Our ability to maintain service revenue growth while unlocking efficiencies through disciplined execution of our expense efficiency programme led to a 22.0 per cent growth in EBITDA and a 0.2pp expansion in EBITDA margin to 53.2 per cent per cent in line with our medium-term target range.”
While growth in voice calls has fallen to single digits over the years, it still remains the company’s dominant revenue puller.
The company stated that its mobile subscribers increased a whopping 10.5% during the year adding 7.2 million new subscribers and taking its total to 75.6 million subscribers.
What MTN is saying about ita voice revenue
“According to the company, “Voice revenue maintained a steady recovery as more customers were reactivated and gross connections ramped up. This was backed by our customer value management (CVM) initiatives through which we managed churn and drove increased usage from the existing base. As a result, voice revenue rose by 6.8%, bucking the slower growth trend of general voice traffic as data traffic continues to increase.”
Continuing with its blistering growth trajectory over the last 5 years, MTN’s data revenue recorded a whopping 49.6% rise in revenues to N746.9 billion in 2022 alone.
In the last quarter of 2022 alone, alone reported revenue of N215 billion from data. At this pace, MTN’s data revenue will surpass N1 trillion in 2023.
Active data subscribers also rose by 15.3% to 39.5 million after it added 5.2 million new users in 2022.