MTN posts record annual revenue of N2 trillion and proposes final dividend of N203.5 billion
MTN Nigeria Communications Plc recorded revenue above the 2 trillion naira mark for 2022, a bumper year in which revenue grew by one-fifth and net profit by about the same rates, its audited results report showed on Wednesday.
The feat solidifies the mobile operator's place as Nigeria's largest state-owned company by revenue, with revenue up 21.6% to N2 trillion and with service revenue contributing 99.7% of this sum.
Revenue streams, including data and digital services, have seen significant growth, the report details.
The local unit of MTN Group, based in Johannesburg, registered 7.2 million new subscribers in the year under review, which translates into a 10.5% expansion and brings its base to subscribers at 75.6 million.
“We continued to manage and invest in the resilience of our businesses and networks, expanding coverage and capacity with a focus on spending efficiency and disciplined capital allocation,” said CEO Karl Toriola in a separate document accompanying the financial statements.
"We became the first mobile network operator to launch a 5G network in Nigeria, providing coverage in key cities across six geopolitical regions. Since its commercial launch in September 2022, we have deployed 588 sites and brought the network 5G to 5G-enabled smartphones, starting with iPhone users."
Financial income increased slightly from N11.9 billion to N13.8 billion, driven by interest income on bank deposits.
The telecommunications company launched its payment subsidiary MoMo PSB last May a month after gaining approval from regulators to run the unit, and the latest report says it has added 2 million wallets active mobile money from launch until the end of December.< /p>
The number of active fintech subscribers jumped by more than half to 14.9 million during the year.
Direct network operating costs, which jumped 18.1% to 459 billion naira, and financial costs, which jumped by about a third, were the main pressure points on the profits.
Costs increased significantly, taking a hit to margin, which came in at 17.8% from FY21, when net profit margin was 18.1%.
“As of December 31, 2022, the Group had trade receivables of N85.88 billion before an expected credit loss of N13.65 billion,” independent auditor Ernst & Young noted in its report.
“The telecommunications sector continues to be impacted by certain macroeconomic challenges which have caused the company to experience uncertainty in the collection of some of its receivables from specific customers,” he added.
>Pre-tax profit was N534 billion, up from N436.7 billion last year, while net profit rose 20.2% to N358.9 billion, against N298.7 billion.
MTN Nigeria said in another regulatory filing that it would pay shareholders a final dividend per share of N10, a potential payout of N203.5 billion.
If the proposal wins shareholder approval, the total dividend payout for the year will be N317.5 billion (N15.60 per share). This compares to N267.1 billion (N13.12 per share) a year earlier.
MTN Nigeria is the largest market of the MTN Group,...
MTN Nigeria Communications Plc recorded revenue above the 2 trillion naira mark for 2022, a bumper year in which revenue grew by one-fifth and net profit by about the same rates, its audited results report showed on Wednesday.
The feat solidifies the mobile operator's place as Nigeria's largest state-owned company by revenue, with revenue up 21.6% to N2 trillion and with service revenue contributing 99.7% of this sum.
Revenue streams, including data and digital services, have seen significant growth, the report details.
The local unit of MTN Group, based in Johannesburg, registered 7.2 million new subscribers in the year under review, which translates into a 10.5% expansion and brings its base to subscribers at 75.6 million.
“We continued to manage and invest in the resilience of our businesses and networks, expanding coverage and capacity with a focus on spending efficiency and disciplined capital allocation,” said CEO Karl Toriola in a separate document accompanying the financial statements.
"We became the first mobile network operator to launch a 5G network in Nigeria, providing coverage in key cities across six geopolitical regions. Since its commercial launch in September 2022, we have deployed 588 sites and brought the network 5G to 5G-enabled smartphones, starting with iPhone users."
Financial income increased slightly from N11.9 billion to N13.8 billion, driven by interest income on bank deposits.
The telecommunications company launched its payment subsidiary MoMo PSB last May a month after gaining approval from regulators to run the unit, and the latest report says it has added 2 million wallets active mobile money from launch until the end of December.< /p>
The number of active fintech subscribers jumped by more than half to 14.9 million during the year.
Direct network operating costs, which jumped 18.1% to 459 billion naira, and financial costs, which jumped by about a third, were the main pressure points on the profits.
Costs increased significantly, taking a hit to margin, which came in at 17.8% from FY21, when net profit margin was 18.1%.
“As of December 31, 2022, the Group had trade receivables of N85.88 billion before an expected credit loss of N13.65 billion,” independent auditor Ernst & Young noted in its report.
“The telecommunications sector continues to be impacted by certain macroeconomic challenges which have caused the company to experience uncertainty in the collection of some of its receivables from specific customers,” he added.
>Pre-tax profit was N534 billion, up from N436.7 billion last year, while net profit rose 20.2% to N358.9 billion, against N298.7 billion.
MTN Nigeria said in another regulatory filing that it would pay shareholders a final dividend per share of N10, a potential payout of N203.5 billion.
If the proposal wins shareholder approval, the total dividend payout for the year will be N317.5 billion (N15.60 per share). This compares to N267.1 billion (N13.12 per share) a year earlier.
MTN Nigeria is the largest market of the MTN Group,...
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