MTN Nigeria (MTNN) Plc has reported higher revenue for full year 2023 largely driven by improvement in voice and data sales, despite a challenging market environment.
The largest telecommunications firm in Africa’s most populous nation has been investing in infrastructure to boost services in a country where customers who are mainly young crave for data usage.
Data from the Nigerian Exchange (NGX) shows MTNN’s revenue increased by 22.58 percent to N2.46 trillion from N2.01 trillion as at December 2022.
A breakdown of total top-line figures shows revenue from voice jumped by 9.70 percent to N1.13 trillion from N1.03 trillion while sales from data rose 39.80 percent to N1.07 trillion from N764.35 billion.
It is important to note that total subscribers was up by 5.30 percent to 79.7 million as at December 2023, a rare feat that is practically difficult for peer rivals to achieve.
Active data users were up by 12.70 percent to 44.60 million, while active mobile money (Momo PSB) wallets surged by 163.20 percent to N5.30 million.
Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 12.3 percent to N1.2 trillion.
Investors should not fret about the balance-sheet strength of the telco giant as its free cash flow grew by 11.6 percent to N631.60 billion.
However, just like most big firms, MTNN felt the pinch of a currency devaluation which led to a foreign exchange loss of N740.43 billion.
Companies operating in Nigeria are reeling from inflationary pressures, high interest rates, and foreign currency volatility that aggravated imported inflation while consumer wallets remain squeezed.
Nigeria’s inflation rate accelerated further in January and reached almost 30 percent in annual terms, driven by soaring food costs and the fall of the country’s naira currency to record lows.
The naira has lost around 70 percent of its value against the dollar since the currency’s widely-criticized peg was relaxed in June.
“2023 witnessed a very challenging operating environment characterised by rising inflation, currency devaluation and foreign exchange shortages, complicated by geopolitical disruptions and cash shortages in Q1 arising from a redesign of the naira. These factors created severe headwinds for our customers and our business during the year,” said Karl Toriola, chief executive officer of MTN Nigeria.
“Notwithstanding the elevated volatility in our operating environment in 2023, we maintained our pledge to create shared value in Nigeria, which is a key priority of our Ambition 2025 strategy. From an environmental perspective, we progressed our commitment and work towards achieving net-zero emissions by 2040 through the utilisation of the most up-to-date and efficient technologies,” said Toriola.
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