As telecommunications giant MTN Group continues to pursue its local listing ambition in Nigeria, the West African operation has shown positive momentum in the first quarter of the year.

The group last week published MTN Nigeria’s first-quarter financial results ahead of the planned initial public offering (IPO) later this year.

"MTN Nigeria's performance during the first quarter reflects the continuation of the positive momentum evidenced in the second half of 2017, following a period of increased investment and renewed focus on operational execution,” says MTN Nigeria CEO Ferdi Moolman.

MTN Nigeria remains the leading mobile operator in the country, currently boasting 54.5-million subscribers, following strong subscriber net additions of 2.3-million during the quarter ended March.

Service revenue during the first quarter of the year climbed 14.5% to N248.3-billion, led by a 73.2% increase in data revenue, a 15.2% growth in voice revenue and an increase in Active Mobile Money customers to two-million.

“The improving macroeconomic environment and consumer sentiment across the country supported the positive revenue trends evidenced in recent months,” he says.

With expenses well controlled and the naira stable, the earnings before interest, taxes, depreciation and amortisation margin expanded to 41.8% in the three months under review.

MTN Nigeria invested N17.9-billion in capital expenditure in the three-month period under review and, focused on retaining its network leadership, the group deployed 298 third-generation and 174 fourth-generation sites in the quarter.

“We continue to evolve our data pricing aligned to the group's dual-data strategy. With the strong progress made on network quality, availability and coverage, we believe the business is well positioned to benefit from the material data opportunity the Nigerian market presents,” Moolman says.

MTN Nigeria also secured approval from the Nigerian Communications Commission to use the 700 MHz spectrum for the deployment of telecommunications services, with engagements continuing with regulatory authorities on MTN’s roll-out obligations, as well as on interference on the spectrum band.

MTN Group also reported good progress on the process for the IPO planned for Ghana to be concluded later this month.

In April, t

he group obtained all the required regulatory approvals to proceed.

Meanwhile, MTN Benin has concluded a memorandum of understanding with the Benin government over historic frequency fees, a five-year licence extension and the addition of FTTx to the existing licence conditions.

The deal includes a settlement in excess of $120-million paid in two tranches of $63-million or XAF35-billion in May and December.

MTN Group president and CEO Rob Shuter says that negotiations around future frequency fees are continuing and expected to be concluded by the end of June.

In November, MTN Benin received notification from telecoms regulator Arcep for a review of nonpayment of outstanding frequency fees in 2016 and 2017.