Lagos| Nigeria: Wednesday, 30 October 2019

MTN Nigeria Communications Plc (MTN Nigeria) announces its unaudited results for the nine months ended 30 September 2019. In January 2019, MTN Nigeria adopted IFRS 16 and adjustments are reflected in the results.

Salient features:
  • Mobile subscribers increased by 0.1 million to 61.6 million
  • Active data users increased by 1.6 million to 22.3 million
  • Service revenue increased by 12.1% to NGN 854.9 billion
  • EBITDA grew by 39.3% to N460.1 billion (IAS 17: 15.8% to N382.5 billion)
  • EBITDA margin increased by 10.5 pp to 53.7% (IAS 17: 44.7%, up 1.5pp)
  • Earnings per share rose by 29% to N7.29k (IAS 17: 36.6% to N7.72k)
  • Capex increased by 39.5% to N154.1 billion (IAS 17: 20.9% to N133.5 billion)

Unless otherwise stated, financial information is year-on-year (YoY) (the nine-month period ended 30 September 2019 versus the nine-month period ended 30 September 2018). Non-financial information is presented quarter-on-quarter (QoQ), or Q319 vs Q219.

MTN Nigeria CEO, Ferdi Moolman comments:

“Our performance was very encouraging, demonstrating the resilience of our business despite a challenging operating environment. We sustained double-digit growth in service revenue led by growth in voice and data revenue.

We recorded 61.6 million subscribers, representing a 0.1 million increase QoQ. We were required to undertake a SIM re-registration process, which resulted in a disconnection of around 0.6 million active subscribers, limiting base growth.

During the quarter, we focused on the end-to-end optimization and repositioning of our data offerings. We made significant investments in accelerating 4G network expansion; and leveraging 800MHz spectrum activated in Q2 2019, we launched enhanced 4G+ services in Lagos, Abuja, and Port-Harcourt. We also changed our pricing strategy, placing us in an even stronger competitive position going forward. As a result, we have begun to see promising results with active data subscriber net additions of 1.6 million and 4G population coverage at over 35% in 64 cities. Data traffic volume also increased by over 68%, while data revenue rose by 34.9% yoy.

We continued to sustain EDITDA margin expansion and operating leverage with EBITDA growth ahead of revenue and inflation at 39.3%, while growth in profit after tax and earnings per share remained strong at 29% apiece.

During the period, we obtained Platinum accreditation from Investor in People (IiP), a global body that assesses the people practices of companies across 75 countries. This achievement reflects the premium we place on our people, and places MTN Nigeria among the best companies to work for globally.”

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