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MTN Nigeria Mobile Subscribers Increased by 7.6% to 74.1 Million in H1 2022

Africa’s leading telecommunications company, MTN Nigeria has reported a 7.6% increase in the total number of mobile subscribers in the first half (H1) of the year ended June 30, 2022 to 74.1 million.

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Africa’s leading telecommunications company, MTN Nigeria has reported a 7.6% increase in the total number of mobile subscribers in the first half (H1) of the year ended June 30, 2022 to 74.1 million.

The telecoms giant disclosed this in its unaudited financial results released and obtained by Investors King on Friday.

According to the financial statement, MTN Nigeria added 5.7 million subscribers in the first half of the year. Active data users grew by 2.5 million or 13.2% to 36.8 million when compared to the same period in 2021 while active fintech subscribers increased by a whopping 87.3% or 4 million registered (2.4 million active) MoMo wallets to 11.5 million since it launched its Payments Service Bank (PSB) in May 2022.

Revenue generated through service expanded 19.9% to N947.9 billion in the period under review. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 22.1% to N509.3 billion.

The company’s EBITDA margin increased by 0.9 percentage points (pp) to 53.6%. Profit before tax increased by 24.9% to N268.6 billion. MTN Nigeria grew profit after tax by 28.1% to N181.6 billion in the first half of 2022.

Earnings per share rose by 28.1% to N8.92 kobo while capital expenditure jumped by 67.1% to N311.6 billion.

Commenting on the company’s performance, Karl Toriola, MTN Nigeria CEO, said “During the first half of 2022, we made good progress in strengthening the resilience of the business in the face of our increasingly challenging operating environment with rising energy, food and general inflation putting pressure on consumer spending. The conflict in Ukraine as well as implementation of a “zero-COVID” policy in China, has also put a strain on global supply chains. To mitigate global supply chain and exchange rate risks, we accelerated capital expenditure for network expansion into H1 2022.

“We deployed capex of N311.6 billion to accelerate the rollout of our 4G network, which now covers 75.3% (compared to 65.1% in H1 2021) of the population and accounts for 77.9% of data traffic (compared to 67.2% in H1 2021).

“In addition, having acquired one lot of 100MHz in the 3.5GHz spectrum band from the Nigerian Communications Commission (NCC), we are on track to launch 5G services across the country in Q3 2022. 5G technologies deliver significantly higher speeds and lower latency, potentially unlocking many new use cases for consumers and enterprises while improving network economics.”

On the impact of NCC on the company’s operations,  Toriola said 2.6 million of the 10 million subscribers deactivated on the commission mandate have been reactivated after verification by the National Identity Management Commission (NIMC).

He said “Since the directive from the NCC for all operators to restrict outgoing calls for subscribers whose SIMs are not associated with NINs, approximately 10 million of those affected have submitted their NIN, of which about 2.6 million have been reactivated following verification by National Identity Management Commission (NIMC).

“We continue to engage our affected customers and support NIMC in accelerating NIN enrolment in the country.

“We maintained strong commercial momentum with a net addition of 5.7 million mobile subscribers in H1. This reflects a pleasing acceleration in the run-rate of monthly net additions during Q2, following the initial impact of the restriction of outgoing calls placed on subscribers who had not submitted their National Identity Number (NIN) as at 4 April 2022. Our aggressive drive for gross connections supported this recovery as we ramped up SIM registration and NIN enrolment capacity.”

The CEO further stated that the company increased active data subscribers by 2.5 million in the first half of 2022.

He said “We added 2.5 million active data subscribers in H1 as we continued to drive data conversion from the new and existing subscriber base. In addition, we continue to enhance the quality and coverage of our network to accommodate the increasing demand for data.

“We achieved some important strategic milestones in H1 towards delivering our Ambition 2025 strategy. This includes the final approval for our MoMo Payment Service Bank (PSB) and the commencement of commercial operations on 19 May 2022, leveraging the solid foundation of our existing MoMo business.

“We are pleased with the progress since the launch and excited about the prospects of our fintech business and driving financial inclusion in the country. As at the end of June 2022, we recorded 4.2 million registered MoMo wallets of which 2.4 million are active, generating MoMo transaction volume of approximately 7 million within six weeks of operations.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Finance

CBN to Launch USSD Code for eNaira Next Week

The Central Bank of Nigeria (CBN) has announced plans to launch the Unstructured Supplementary Service Data (USSD) code for eNaira transactions next week.

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The Central Bank of Nigeria (CBN) has announced plans to launch the Unstructured Supplementary Service Data (USSD) code for eNaira transactions next week.

Godwin Emefiele, the governor of CBN, disclosed this at the Grand Finale of the 2022 eNaira Hackathon held in Abuja on Thursday.

The eNaira is the Central Bank of Nigeria’s virtual currency, basically a digital form of the Nigerian Naira.

According to Emefiele, Nigerians can also open an eNaira wallet on any mobile phone via a designated USSD code. Explaining the process, the CBN governor said Nigerians only need to dial *997# on their mobile phones to perform transactions.

He said “Nigerians, both banked and unbanked, will be able to open an eNaira wallet and conduct transactions by simply dialling *997 from their phones.

“Shortly after this, both merchants and consumers with bank accounts can use the NIBSS Instant Payment (NIP) to transfer and receive eNaira to any bank account.

“This will further deepen the integration of the eNaira with the existing national payment infrastructure”.

“The CBN will increase the level of Financial Inclusion in the Country because just like the Naira, the eNaira is expected to be accessible to all Nigerians. And would provide more possibilities to bring in the unbanked into the digital economy.”

In May 2022, Emefiele said central banks from various African nations and across the world are now studying Nigeria’s eNaira project.

Emefiele said, “We feel delighted with what we are doing in the area of the Central Bank Digital Currency, CBDC. What we are doing in the area of eNaira is attracting the interest of different countries in the world,” Emefiele said during an experience-sharing tour of the CBN’s CBDC (eNaira) by officials of the Bank of Uganda in Abuja.

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FMAN Elects New Excos as Coronation Asset M.D, Aig-Imoukhuede Emerges as President

FMAN has elected the Managing Director of Coronation Asset Management Limited, Mr. Aigbovbioise Aig-Imoukhuede as the new President-elect of the association.

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Fintech CEO: Rate Hikes & Inflation Spell Different Reality than Stock Market

Since its low in June, the S&P has seen a bump of 18%, while the NASDAQ has risen roughly 20%

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Since its low in June, the S&P has seen a bump of 18%, while the NASDAQ has risen roughly 20%. This week, both Morgan Stanley and BlackRock analysts have noted that the recent bounce likely won’t continue. One Fintech exec, who has been sounding the warning bells on the economy for the better part of the past year, speaks on the current state of affairs.

“As soon as we saw the trajectory of the pandemic-related spending bills, anybody with basic economic knowledge knew that inflation was going to be a concern. What most didn’t anticipate was the land war in Eastern Europe that only exacerbated energy costs and supply chain issues,” said Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges.

“As inflation, which was nudged higher by pandemic-related supply chain shortages which still haven’t fully abated, began to affect household budgets, it was clear that rate hikes were coming. The 75 basis point hikes were historic, but all indicators show that additional increases will be necessary. The increases are only starting to ripple across the economy,” said Gardner.

“There was some excitement over July’s CPI, but the reality is that this economy isn’t back on track. The excitement and celebration is a bit too soon, and I think the fundamentals still show that. Given the market’s recent boon, I think you’re starting to see an influx of FOMO, and that’s not painting the full picture,” said Gardner.

Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Modulus has provided its exchange solution to some of the industry’s most profitable digital asset exchanges, including a well-known multi-billion-dollar cryptocurrency exchange. Over the past twenty years, the company has built technology for the world’s most notable institutions, with a client list which includes NASA, NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.

“Right now could be a great time for companies to work on new projects and get them ready to bring to market. It is a great time for R&D, and, for the companies that planned for this economic upheaval, it is a time to poach top talent that find themselves laid-off. In particular, it is a great time for startups that just completed a major funding round. They’ll have the financial resources to weather the storm while competitors may begin to struggle with liquidity,” said Gardner.

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