Nigeria’s MTN Becomes First Plc to Hit N2 Trillion Revenues

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Nigeria’s largest telecommunications company, MTN, has made history by becoming the first publicly listed company to cross the N2 trillion mark in revenues. The company released its 2022 audited financial statements, posting revenue of N2 trillion, a 21.6% increase from the N1.6 trillion reported in 2021.

In a difficult year for Nigeria’s macro-economy, MTN still managed to record growth across all segments of its business with voice and data leading the surge. The company recorded a 21.5% increase in service revenue, above the average inflation rate, supported by an accelerated investment in the network. This led to a 22.0% growth in EBITDA and a 0.2% expansion in EBITDA margin to 53.2%.

Voice revenue rose by 6.8%, and the company added 7.2 million new mobile subscribers, bringing the total to 75.6 million. Data revenue recorded a 49.6% rise, with active data subscribers increasing by 15.3% to 39.5 million. MTN has invested heavily in its data business, leading to the implementation of a 5G network in Nigeria. The company’s fintech, digital, and other services segments also recorded growth.

MTN’s profits delivered a return on average equity of 119.5%, one of the highest ever recorded, and the company will be paying a dividend of N10 per share, bringing the total dividend to N15.5 per share and yielding 6.68%. The share price remained flat at N225 per share, indicating that investors are yet to fully digest the impact of the results on the company’s value.

According to MTN CEO Karl Toriola, “Our strong commercial momentum, supported by an accelerated investment in our network, enabled growth across all revenue lines.” The company’s growth trajectory is set to continue with its “Ambition 2025” plan.

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