Telecommunications

MTN Reports N298.7 Billion Profit Despite Subscribers Declining by 8 Million to 68.5 Million in 2021

MTN Nigeria Communications Plc grew profit after tax by 45.5 percent to N298.7 billion in the financial year ended December 31, 2021.

The telecom giant disclosed in its audited financial statements released on Friday.

Mobile subscribers decreased by 8 million to 68.5 million, largely due to SIM activation and sales suspension. Investors King understands that mobile subscribers rose in the final quarter of 2021.

Active data users grew to 34.3 million in the year under review, an increase of 1.7 million when compared to the same period of 2020. ACtive fintech subscribers increased by 4.8 million to 9.4 million, while service revenue increased by 23.3 percent to N1.7 trillion.

Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 27.9 percent to N877.1 billion. Earnings per share (EPS) rose by 45.5 percent to N14.67 kobo.

MTN Nigeria proposed a final dividend of N8.57 kobo per share.

Commenting on the company’s performance, Karl Toriola, CEO, MTN Nigeria, said “2021 was a significant year for our Company. We commemorated our 20th anniversary with a celebration of our customers and all the stakeholder relationships that enabled our journey. In addition, we made good progress towards our Ambition 2025 objectives, demonstrating the strength and resilience of the business.

“This reflects the firm foundations on which our business is built, the tenacity and commitment of our people, and the support of our stakeholders. We continue to deepen our contributions to society in line with our priority to enhance shared value. During the year, our total contribution to the Government through direct and indirect taxes was N669.2 billion, up 83.4%, representing approximately 40% of our total revenue.

“We extended our interventions, in response to the challenges to our nation arising from the COVID-19 pandemic, providing a further N1.5 billion to the Coalition Against Covid-19 (CACOVID) in support of efforts aimed at curbing the spread of the virus. This is supplementary to other interventions to protect the health and well-being of our people, customers and stakeholders. We also worked hard across our business to embed new ways of working while harnessing the opportunities presented by the trends in digital adoption.

“In line with our objective to share our Company’s success with our various stakeholders, the first phase of a series of transactions to increase Nigerian ownership in MTN Nigeria was conducted during 2021 by way of bookbuild to institutional investors and fixed price offer to retail investors (the Offer). The outcome of the Offer will be announced once regulatory approvals have been obtained.”

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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