Shareholders To Receive MTN Nigeria Interim Dividend of N5.60 on Aug 24, 2023
Salient points of MTN second quarter result
1. Subscriber Growth: MTNN experienced a positive growth in its mobile subscriber base, with a 4.0% increase to reach 77.1 million subscribers. This indicates that the company continues to attract new customers to its mobile services.
2. Data Services: The company’s data services have seen significant growth, with an 11.5% increase in active data users, reaching a total of 41.0 million. This suggests a rising demand for data-related products and services among its customer base.
3. Mobile Money Services: MTNN’s Mobile Money (MoMo PSB) wallets also showed growth, adding 1.1 million active users in the first half of the year, bringing the total to 3.1 million. This reflects the increasing popularity and adoption of mobile money services in Nigeria.
4. Revenue and EBITDA: The company’s service revenue saw a notable increase of 21.6% to N1.2 trillion. Additionally, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 20.6% to N614.5 billion. This indicates that the company is generating higher earnings from its core operations.
5. Profit and EPS: Despite the growth in revenue and EBITDA, the Profit Before Tax (PBT) experienced a decline of 25.4% to N200.4 billion. However, when adjusting for the unrealized forex loss, the decline is reduced to 17.6%, with the PBT reaching N331.8 billion. Similarly, Earnings Per Share (EPS) declined by 29.3% to N6.33 kobo. But, after adjusting for the unrealized forex loss, EPS increased by 13.4% to N10.66 kobo. This indicates that the company’s profitability was impacted by foreign exchange fluctuations.
6. Capital Expenditure: MTNN’s capital expenditure (capex) decreased by 14.4% to N266.8 billion. However, when excluding right-of-use assets, the decline is reduced to 13.8%, with capex reaching N176.3 billion. This suggests that the company may have reduced its investment in fixed assets during the period.
7. Dividend: MTNN maintained its interim dividend at N5.60 kobo per share from the prior year, indicating a stable return to shareholders despite the fluctuations in profit and EPS.
Overall, MTN Nigeria has shown positive growth in its subscriber base, data services, and mobile money services. Despite facing challenges with foreign exchange fluctuations impacting profitability, the company’s service revenue and EBITDA have grown significantly.
The maintenance of dividends indicates the company’s commitment to providing returns to its shareholders. However, the decline in profit and EPS, along with reduced capital expenditure, may require further examination to understand the underlying reasons and potential implications.
