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MTN Nigeria Telecommunication Plc has overtaken Dangote Cement to become the largest firm by revenue in Africa’s most population, validating Buy ratings sundry investment houses place on the telco giant stocks.
MTN Nigeria (MTNN) posted sales of N1.64 trillion as at December 2021, according to data compiled by MoneyCentral.
That compares with Dangote Cement’s revenue of N1.38 trillion; Flour Mills of Nigeria (FMN), N1.04 trillion; Access Bank, N971.9 billion; Ecobank Transnational Incorporation N956.40 billion; Zenith, N765.60 billion; United Bank for Africa, N660.20 billion; FirstBank Holding N562.40 billion, and Guaranty Trust Holding Company N447.80 billion.
Since listing on the Premium Board of the Nigeria Stock Exchange (NSE) in 2019, MTNN has been delivering higher returns to shareholders by bumper dividend and it has not fallen short of magnifying earnings.
It maintains the largest market share of mobile subscribers and it has increased its market share of active subscribers to 50.8 percent in 2021 in a population of 200 million with a huge number of young people and approximately 195 million total subscribers.
MTN Nigeria the largest Firm by revenues has been taking advantage of the country’s huge young population that crave for consumption, and it significantly grew revenue during the Covid-19 crisis as a lockdown accelerated data usage, and there were lots of video conferencing, visual meetings and boredom means people surf the internet.
Aside from being the largest and most valuable platforms and driving industry-leading connectivity operations, the telco giant is poised for future challenges and a torrent of consumer demand as it has been proactively investing in 5G infrastructure.
MTNN is also the most liquid stock in Nigeria, and it is attractively priced, a good entry point for investors who wish to add good stocks in their portfolios.
It has FY-23E EBITDA multiples of 3.8x and 3.1x respectively vs. emerging market peers and African peers FY-22E multiples of 7.1x and 5.9x and FY-23E multiples of 6.7x and 5.3x respectively.
Shareholders are guaranteed steady return on their investment because financial technology (Fintech) and data are going to be the major driver of MTNN future revenue growth.
MTNN has received final approval from Nigerian regulators to run a payment service bank, and what this means is that the wireless carrier will be cannibalizing the revenue of banks.
“The date of commencement will be communicated to the CBN (Central Bank of Nigeria) in accordance with its requirements,” the telco heavyweight said of the bank to be known as MoMo Payment Service Bank Limited in a note to the Nigerian Exchange.
The approval, the fruit of well over two years of waiting for the permit, gives the local unit of Johannesburg-headquartered MTN Group Limited the leave to operate virtually all the services offered by conventional commercial banks with the exception of granting credit and processing foreign exchange transactions.