MTN Nigeria Subscribers Hit 75 Million in 9 Months Ended September 30, 2020

MTN Nigeria’s profit before tax declined by 0.6 percent to N211.6 billion in the nine months ended September 30, 2020 despite mobile subscribers hitting a record 75 million.

Key Highlights of MTN Nine Months Financial Results

• Mobile subscribers expanded by 3.9 million to 75million
• Active data users increased by 1.7 million to 30.7 million
• Service revenue increased by 13.9 percent to N973.8 billion
• Earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 9.1 percent to N497.9 billion
• EBITDA margin declined by 2.3 percentage point (pp) to 51.0 percent
• Profit Before Tax (PAT) declined by 0.6% to N211.6 billion
• Earnings Per Share (EPS) declined by 3.3% to N7.1 kobo

In the financial statements published through the Nigerian Stock Exchange (NSE), the company’s total mobile subscribers rose by 3.9 million during the period under review to 75 million while the telecommunications total active data users grew by 1.7 million to 30.7 million.

Accordingly, service revenue expanded by 13.9 percent to N973.8 billion in the same period but earnings before interest, tax, depreciation and amortisation (EBITDA) appreciated by 9.1 percent to N497.9 billion.

Still, the EBITDA margin declined by 2.3 percentage points to 51 percent due to the increase in investments in the company’s network and also the negative impact of the devaluation of the Naira. Earnings per share moderated by 3.3 percent to N7.1kobo.

Speaking on the company’s financial results, Ferdi Moolman, the CEO, MTN Nigeria, said voice traffic decline during the second quarter while data used grew due to the lockdown.

He said “Following a decline in voice traffic and an acceleration in data during lockdowns in Q2, we have seen a normalization of traffic as restrictions have been removed, with a recovery voice traffic and continued growth in data. This has supported a 13.9% growth in service revenue, with an acceleration of growth to 16.5% in Q3 specifically.”