MTN Delights Investors With Historic N400bn Profit

 

Kayode Tokede

Historically, MTN Nigeria Plc crossed N400billion mark in profit before tax in audited result and accounts for full year ended December 31, 2021 on the backdrop of improved revenue and effective cost management.

The telecommunication giant sources of revenue are Voice, Data, Digital, FinTech and Other service revenue.

In the period under review, MTN Nigeria grew revenue by 23 per cent to N1.65trillion as against N1.36trillion reported in 2020 financial year.

Service revenue generated from Data continued to lead, supported by voice, Fintech and digital service. Service revenue grew by 23.3per cent despite the 10.6 per cent decline in subscriber base.

Revenue from Digital gained 61.2 per cent to N18.04billion in 2021 from N11.19billion reported in 2020 as revenue from Data rose by 55.3 per cent to N516.15billion from N332.4billion reported in 2020.

Revenue generated from FinTech closed 2021 at N70.55billion, an increase of 57.3 per cent from N44.85billion in 2020, while revenue from “Other Service” increased by 37.6 per cent to N75.15billion in 2021 from N54.61billion reported in 2020.

In addition to revenue, Voice also gained 8.4 per cent in 2021 to N971.45billion as against N895.97billion reported in 2020.
Revenue from Voice

Voice revenue grew by 8.4per cent to N971.45billion due to higher usage in MTN Nigeria active SIM base, resulting in a 7.9per cent growth in minutes of use.

This was supported by the success of customer value management (CVM) initiatives, reducing the impact of SIM registration and activation restrictions in first half of 2021 and network restrictions in some locations towards the end of 2021. In addition, the telecommunication continued to ramp up gross connections through rural telephony initiatives while expanding our customer acquisition points, further supporting growth in voice revenue.

Leveraging on 4G

Data revenue rose by 55.3per cent, maintaining an accelerated growth trajectory in Q4 as MTN Nigeria continue to accelerate the expansion of its 4G coverage, enhance the quality and capacity of network to support increasing data traffic, and grow active data users. Average MB per user rose by 62.7per cent, enabling overall data traffic growth of 85.3per cent.

Also, smartphone penetration on the network grew by 4.0per cent to 50per cent. MTN Nigeria’s 4G network now covers 70.3per cent of the population, up from 60.1 per cent in 2020.