MTN Group Limited, the parent company of MTN Nigeria, has released its financial result for the first quarter period ended March 31st, 2019.
The result shows a generally impressive performance across the company’s markets in Africa and the Middle East, with a 10.0% increase in the Group’s total operating revenue; year on year.
Focus on MTN Nigeria’s performance: As expected, focus is on MTN Group‘s biggest market (i.e., MTN Nigeria), which witnessed a 13.4% increase in service revenue, year on year. The subsidiary’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins also increased by 53.3%.
According to the financial report which was obtained by Nairametrics, the company’s reported performance from Nigeria is “in line with our medium-term guidance of double-digit growth.”
While reacting to MTN Nigeria‘s Q1 EBITDA increase of 53.3%, an Equity Sales Manager with Stanbic IBTC Stockbrokers, Mr Akinbamidele Akintola, said:
“What a beautiful business! Just focus on the 53.3% EBITDA Margin; it ranks up there with Dangote Cement Plc.”
Important indicators from the report
- Group subscribers increased quarter-on-quarter (QoQ) by 4.0 million to 236.6 million
- Active data subscribers increased QoQ by 2.6 million to 81,3 million
- Active MTN Mobile Money customers increased QoQ by 1.2 million to 28.3 million
- Group service revenue increased year-on-year (YoY) by 10.0%
- MTN South Africa service revenue increased YoY by 4.6% with earnings before
interest, tax and depreciation (EBITDA) margin of 38.8% (35.3%)
- MTN Nigeria service revenue increased YoY by 13.4% with an EBITDA margin of
- Reported growth rates for both service revenue and EBITDA were higher than
constant currency rates
What influenced MTN Nigeria’s impressive performance? According to the financial report, the Nigerian performance was influenced by a 32.4% increase in revenue realised from data sales, as well as a 12.7% increase in voice revenue. What this shows is that the company’s Nigerian customers spent more money buying data than they did making phone calls.
“This was led by a 32.4% increase in data revenue and a 12.7% increase in voice revenue. A general slowdown in economic activities during the election period impacted voice revenue growth. Growth in data revenue was supported by an increase in smartphone penetration, improved network quality and a 9.1% increase QoQ in active data subscribers to 20.4 million. Total subscribers increased by 3.6% QoQ to 60.3 million. MTN Nigeria reported an EBITDA margin of 53.3%. On an IAS 17 basis the margin increased to 44.2%, up 2,4 percentage points YoY, driven by the growth in revenue and effective cost management.”
Group CEO’s comment: While commenting on the overall group performance, MTN Group‘s Chief Executive Office, Rob Shuter, said the overall growth in revenue was made possible by expansion in voice, data, and fintech.
“The growth in service revenue was supported by the continued expansion in voice, data and fintech revenue. Outgoing voice revenue increased by 5.9%, data revenue increased by 18.3% and fintech revenue increased by 30.6%. Digital revenue declined by 45.4%, impacted by the work that continues around optimising our value added services business. Currency markets were favourable in the quarter, resulting in reported service revenue
growth higher than constant currency rates.”
Recall that a recent report by Nairametrics had it that MTN Nigeria remains the leader in the Nigerian telecoms industry. As at February 2019, the company recorded the highest number of mobile internet subscribers. MTN‘s subscriber base increased by 41% to 46.5 million. We also reported that MTN Nigeria has finally completed the registration of 20.345 billion ordinary shares of N0.02 each with the Securities and Exchange Commission.
Upshots: This result is a major booster for MTN’s planned listing on the Nigerian Stock Exchange. Retail investor interest in the stock exchange is also expected to rise and most stock brokerage firms should be on the line to earn significant fees from the volumes of trade this listing could provide.
Hyundai and Kia to set up an assembly plants in Ghana by 2022
The automobile giants will join Toyota-Suzuki, Nissan, Kantanka, Volkswagen, and Sinotruck who already have plants in Ghana.
Few weeks after Twitter announced its plans to open its first African office in Ghana, Hyundai and Kia have also concluded plans to set up an assembly plants in Ghana by 2022. The automobile giants will join Toyota-Suzuki, Nissan, Kantanka, Volkswagen, and Sinotruck who already have plants.
Ghana’s Minister for Trade and Industry, Alan Kyerematen announced this on Twitter.
Pleased to announce that Hyundai & KIA are set to establish assembly plants in Ghana by the end of 2022 to join Toyota-Suzuki, Nissan, Kantanka, Volkswagen & Sinotruck. The Ghana Auto Development programme = 3,600 assembly & 6,600 manufacturing parts jobs in Ghana. #InvestforJobs pic.twitter.com/JMHAmlM5VI
— Alan John Kyerematen (@AlanKyerematen) April 22, 2021
“Pleased to announce that Hyundai & KIA are set to establish assembly plants in Ghana by the end of 2022 to join Toyota-Suzuki, Nissan, Kantanka, Volkswagen & Sinotruck. The Ghana Auto Development program = 3,600 assemblies & 6,600 manufacturing parts jobs in Ghana.
“The local assembly of vehicles, 3,600 direct and indirect jobs would be created in Ghana, and the addition of components and parts manufacturing will also add about 6,600 direct and indirect jobs.”
Why this matters
More foreign companies are shunning Nigeria in favour of Ghana. Recently, Nairametrics reported that Amazon is set to situate its African Headquarters in South Africa, a multi-billion dollar investment that is projected to create over 20,000 jobs both directly and indirectly.
Following its move to Ghana, Twitter CEO, Jack Dorsey cited a number of human rights-related reasons for the choice of Ghana over Nigeria. Added to this are rising insecurity, stifling government regulations and the gapping infrastructural deficit bedevilling Nigeria. Consequently, our nation is steadily losing opportunities to attract foreign companies that could be very instrumental in bridging its unemployment gap which is currently over 30%.
Passports: Backlog of undelievered passports to be fixed before May 31st – Minister
The government also announced the launch of a new passport application system, which would be aided by fast track services nationwide.
The Federal Government disclosed that all backlogs of undelivered passport requests would be fixed before May 31st, and announced the launch of a new passport application system, which would be aided by fast track services nationwide.
This was disclosed by Minister of Interior, Rauf Aregbesola, in a press briefing with newsmen on Thursday.
What the Minister said
“On or before May 31st, all backlogs of undelivered requests for passports will be totally met, unless such applications have a problem,” he said.
“But before the deadline, the problematic application would be contacted, so that we know what’s wrong with the applications. Assuming there would be no problem, every successful application for a passport would be given a passport on or before May 31st,” he added.
The new passport process
The Minister disclosed that the FG will launch a new passport application process which would come into effect soon.
“When you finish your application process, there would be a waiting period of six weeks to collect your passport, however, if you want an express service, there would be fast track centres nationwide, to meet requests for express passport users,” he said.
What you should know
- Recall Nairametrics reported last month that the Federal Government inaugurated the Nigeria Immigration Service Passport Express Centre, which is a partnership with the private sector to enable the government offer passport services to Nigerians and make passports available in a maximum of 72 hours of a successful application.
- The FG also launched the Electronic Temporary Passport to cater for Nigerians desirous of returning home but whose national passport is not available.
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