MTN Nigeria Plc has achieved record sector profit margins and strong sales even amid the impact of the coronavirus pandemic and regulatory restrictions on new SIM revenue.
The telecoms giant is a silver lining in a recovering economy as it continues to generate employment while ensuring that millions of people have access to affordable data service needed to accelerate business transactions.
For the first three months through March 2020, MTN Nigeria’s net profit margins increased to 19.13 percent from 15.71 percent as at March 2020.
Also, earnings before interest taxation and amortization (EBITDA) margins increased to 53.10 percent in March 2021 from 52.20 percent the previous year.
An improvement in margins means more Naira of revenue ends up as profit at the bottom line, which gives the telecommunication giant the cushion to lower price and attract more customers.
The company that has been recording double digit growth in earnings since it went public a few years ago saw net income surge by 42.50 percent to N73.74 billion as at March 2021.
Aside from making money from core operations, MTN Nigeria has a mobile subscribers base of 71.50 million, albeit it declined by 5 million die to the effect of customer churn and regulatory restriction of new SIM sales and activations.
The company said in a statement that more than 35 million subscribers have submitted their National Identification Numbers (NINs) as at 30 April 2021, representing approximately 50 percent of its subscriber base and 63 percent of service revenue.
“We are also actively supporting the Government’s NIN enrolment programme, with 182 points of enrolment active across the country. We are working with NIMC to increase the enrollment centres to provide an access point for as many Nigerian as possible,” said MTN Nigeria CEO, Karl Toriola.
According to news reports, a total of 56.18 million NINs have been collected by the mobile network operators and subscribers who do not integrate their NIN to their SIM by the stated deadline will have their lines blocked.
But this will be disadvantageous to telecoms operators if significant lines are disconnected, and such a decision will undermine economic recovery because the major telecom industry is a major driver of economic growth.
Despite regulatory headwinds, MTN Nigeria’s revenue increased by 17.20 percent to N385.11 billion as at March 2021 from N328.54 billion the previous year.
A breakdown of the top line (sales) shows voice data revenue was up 8 percent to N244.61 billion as at March 2021, while data spiked by 42.60 percent to N105. 69 billion.