MTN Nigeria stays afloat in H12020 amid a tough operating environment

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A customer leaves an MTN shop in Johannesburg, file. REUTERS/Siphiwe Sibeko
  • Service revenue grew by 12.6%
  • Data revenue increased by 57.6%
  • Mobile subscribers increased by 6.8 million
  • Active data users rose by 3.8 million

Harare – Mobile Telephones Networks (MTN) Nigeria, a subsidiary of one of South Africa’s telecoms giant MTN has posted a positive performance for the half year period ended 30 June 2020 despite a challenging operating environment characterised by COVID-19 induced lockdowns.

According to the Chief Executive Officer Ferdi Moolman, the company maintained double digit service revenue growth of 12.6% to NGN637 billion driven by strong growth in the company’s key revenue lines.

Likewise, data revenue rose by 57.6% supported by an increase in data users and traffic.

“Revenue from digital and fintech services rose by 121.8% and 29.6% respectively, while voice revenue growth was 2.8% amidst a change in traffic pattern following the lockdowns, “added Moolman.

During the period under review, mobile subscribers increased by 6.8 million to 71.1 million while active data users rose by 3.8 million to 29 million.

The CEO added that MoMo subscribers increased by 1.6 million to 2.2 million, the majority of which were in the second quarter.

However, Profit before tax declined by 2% to N139.6 billion.

In light of the pandemic, Moolman said, “We launched a free SMS initiative in early April targeted at the low-income mass market, which concluded at the end of June, with more than 4.3 billion free SMS’s sent by more than 53 million customers. Customers used more than 3,000TB of free data to access zero-rated healthcare websites. We have now expanded this initiative to include a range of education platforms endorsed by Nigerian federal and state governments.”

On the outlook, the company said further impacts of COVID-19 are very uncertain and will depend on the evolution of the virus through the remainder of the year, however, MTN Nigeria remains confident in the resilience of the business.

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