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MTN Nigeria delivers double-digit interim growth

26th July 2019

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

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MTN Nigeria on Friday reported double-digit growth across the board for the six months ended June 30.

Service revenue increased by 12.2% during the half-year under review, underpinned by growth in voice and data revenue, which increased by 11.4% and 31.7%, respectively.

“Our recent work to revamp our data prices and accelerate our fourth-generation network has put us in a strong competitive position to offer more value to our customers, supporting data and voice revenue growth which will ultimately strengthen our business,” said MTN Nigeria CEO Ferdi Moolman.

During the half-year under review, earnings before interest, taxes, depreciation and amortisation (Ebitda) surged 40% to N304.9-billion, while the Ebitda margin increased by 10.7 percentage points to 53.8%.

“We are pleased with obtaining a super-agent licence from the Central Bank of Nigeria, which will enable us to build an agent network and accelerate the growth of our fintech business,” Moolman added, highlighting the fintech business’ 21.2% growth in revenue year-on-year.

The super-agent licence will allow MTN to leverage its established distribution channels to offer a range of mobile financial services.

“We will continue to work towards obtaining a payment service banking licence that we applied for in late 2018,” he continued.

Contributing 11.9% to service revenue, the enterprise business also reported significant revenue growth of 31.3% during the first half of the year.

Meanwhile, MTN Nigeria added 3.3-million customers to its network, increasing the subscriber base to 61.5-million – with data subscribers having increased by 2.1-million to 20.7-million.

MTN Nigeria increased its capital expenditure for the six months under review by 63.8% to N105.8-billion.

The group declared a maiden half-year dividend of 2.95 kobo a share.

Edited by Creamer Media Reporter

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