Connect with us
nairametrics

Blurb

MTN wins data war, as 1.88 million subscribers dump Glo, 9mobile 

Nigeria’s largest mobile telecommunication company, MTN, is leading the race for greater data market share among Telcos for the second month in a row. Operators in the industry showed no signs of relenting on their efforts to outsmart each other for market share in the industry. #MTN, #AIRTEL,#GLO

Published

on

Data War: MTN edges our Airtel for first time in 5 months as 493,556 subscribers dump Glo, 9mobile , MTN is winning the data war, as 1.88 million subscribers dump Glo, 9mobile, Data War: MTN gains 8.18 million subscribers in 2019, as Airtel edges Glo, 9mobile

The battle for a greater data market share among Telcos in Nigeria continues to heighten, as Nigeria’s largest mobile telecommunication company, MTN, led the pack, second month in a row. Operators in the industry showed no signs of relenting on their efforts to outsmart each other for market share in the industry.

According to data released by the Nigerian Communication Commission (NCC), 1.88 million internet subscribers dumped Glo and 9mobile in November 2019 in favour of MTN and Airtel, two of Nigeria’s largest data sellers.

MTN leads the pack

From the previous report, MTN edged out Airtel for the first time in 5 months. In a similar fashion, MTN appears to be winning the data war again, as the telecom company gained 850,285 internet subscribers in November 2019.

[READ ALSO: MTN missing as 9 Mobile gets final 5 bidders(Opens in a new browser tab)]

  • MTN now has a total of 53.01 million subscribers compared to 52.16 million subscribers in the previous month.
  • Airtel, which had been the leading gainers’ table in recent months, recorded another drop. Though it continues to witness additional internet subscribers on a month-on-month basis, the Telco has lost its top table rank.
  • In November 2019, Airtel gained 307,070 subscribers, compared to 420,031 and 444,598 internet subscribers in October and September respectively. In total, active internet subscribers for Airtel rose to 33.92 million.
  • In terms of market share, Airtel continues to trail MTN as the latter expands its market share. While Airtel has significantly gained subscribers this year, it has remained behind MTN in terms of total internet subscriber base.
  • At the end of November 2019, MTN’s total market share rose to 67.34 million subscribers from 65.87 million subscribers recorded in October.
  • On the other hand, Airtel’s number of subscribers rose to 49.65 million from 49.08 million recorded in the previous month.
  •  Pertaining to overall market share, MTN now controls 36.93%, while Airtel controls 27.20%.

MTN is winning the data war, as 1.88 million subscribers dump Glo, 9mobile 

Glo suffers monumental drop as 9mobile slips further 

In a complete turn of events for Globacom, 1.67 million internet subscribers dumped the network in just one month. The GSM company continues to lose internet subscribers as more people dumped the network for the third month in a row.

  • Globacom lost about 1.67 million internet subscribers, an increase from 370,845 and 155,118 internet subscribers lost in October and September respectively. This means the GSM company has lost a cumulative 2.19 million internet subscribers in just 3 months.
  • 9mobile also failed to attract new subscribers in the month under review, maintaining its steady decline. In November alone, 210,374 internet subscribers dumped the GSM  company,  a rise from 122,711 internet subscribers in October and 156,065 recorded in September.
  • Overall, Globacom now has 27.3 million subscribers, while 9mobile has 8.13 million internet subscribers.
  • Following the big drop recorded by both Glo and 9mobile, the number of internet subscribers across GSM networks has dropped to 122.4 million from 123.2 million recorded in the previous month.
  • Year-on-year, internet subscribers rose by 10.85 million since December 31, 2018, representing a growth of just 9.7%. The number of internet subscribers was 73,122,552 in October 2014, 5 years ago.
  • In terms of market share in percentages, Glo still controls 28% (51.1 million) market share, while 9mobile controls 7.80% (14.1 million) market share.

MTN is winning the data war, as 1.88 million subscribers dump Glo, 9mobile 

Telcos jostle for subscribers but Nigerians are not impressed

While GSM companies continue to jostle for market share, it has often come at the expense of poor service and lack of accountability. Quite frankly, as an average internet user in Nigeria, one is usually left at the mercy of poor mobile internet services which frustrates one to seek limited alternatives.

Nigeria’s internet download speed remains among the slowest in the world, and while the telcos continue to rake in heavy gains from data sales, consumers continue to groan for lack of fast and affordable internet services.

While reporting, Nairametrics sought random subscribers’ opinions to determine recent developments during the month.

app

[READ MORE: Telcos disregard Pantami’s directives over voicemail, data costTelcos disregard Pantami’s directives over voicemail, data cost]

According to a Glo user“I subscribed for an 8.7 gig data bundle for N4,000. As I am talking to you, I have not been able to use the data for once. To worsen the situation, I did not even get the full data bundle and I’m still unable to use the data. I had to buy Airtel data to use at the moment.”

A 9mobile user stated, “I have resolved to drop my 9mobile line. Honestly, it appears I don’t understand what is wrong with the network anymore. My data bundle burns out very quickly in a matter of days even without any download.”

According to an MTN user“MTN internet service is fast as always, but the data burns out quickly. Although my current data bundle seems to last longer right now, this is quite unusual.”

To an Airtel user, “Airtel data is fast and I am enjoying it. I switched from Globacom due to bad network in recent times, although, Airtel data bundle has been burning out quickly lately.”

app

Samuel is an Analyst with over 5 years experience. Connect with him via his twitter handle

6 Comments

6 Comments

  1. Kingsley Obillor

    January 16, 2020 at 10:34 am

    Airtel is faster and expensive.
    MTN is a bit fast and cheaper.
    Glo is very poor when it’s comes to browsing but very very cheap.
    9mobile …………………

  2. I'm ola

    January 16, 2020 at 11:25 am

    We go for the highest bidder. We know they are all scamming and ripping us off. But since I got 10gb plus 10 gb bonus on my mtn. I clinged to mtn and let my other lines go on hibernation. Shikinah.

    • Anonymous

      January 17, 2020 at 7:08 pm

      10gb plus 10gb bonus? You mean you get 20gb altogether, how do you subscribe to this plan. Drop the code abeg

  3. Femi

    January 16, 2020 at 12:51 pm

    Am currently using glo for my data needs it used to be the cheapest but never the fastest my resolve now at the expiration of my current subscription is to migrate to MTN no going back. Glo has lost the steam

  4. Adedinsewo adetomiwa

    January 17, 2020 at 8:01 am

    Glo will give you much data, but won’t give you the network to use the data. Airtel or mtn all the way guys😘

  5. Iwuala michael

    May 11, 2020 at 10:31 pm

    All they said is truth, GLO has been the worst network so far in a city like lagos. How can one give you something with right hand and collect it with left hand, its cheating. Glo will give you cheap data and you won’t see network to use it, rubbish! MTN is the best, I give them 5stars.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Blurb

Analysis: Total Nigeria needs a financial overhaul

 Total Nigeria’s Q1’20 results are a testament that some might have it worse than others as it recorded a revenue drop of 9.3% to N70.2 billion

Published

on

Total Nigeria, Analysis: Total Nigeria needs a financial overhaul

The Oil Industry has had a particularly tough year, owing primarily to the novel pandemic. The International Energy Agency (IEA) predicts that the global oil demand is expected to further decline this year as Covid-19 spreads around the world, constraining travel as well as other economic activities.

Organizations like Total depending on international trade will be forced to scale down operations until restrictions ease off. However, Total Nigeria’s Q1’20 results are a testament that some might have it worse than others.

The period recorded a revenue drop of 9.3% to N70.2 billion in the first quarter of this year compared to Q1 2019. Total earns its revenue from three main sectors namely: Networks, General Trade, and Aviation. Revenue from Aviation fell by 39.5%. The decline in Networks is attributed to the reduced demand as a result of the enforced lockdown and restriction on travel across the nation.

READ ALSO: Analysis: MTN’s blow out Q1 profit vs Covid-19 headwinds  

Yet, it is clear that the company had its own challenges pre-COVID-19. In the quarter, it attained a loss after tax of N163 million which was 65.6% better than the loss after tax of the comparative quarter; it is overwhelmed by a myriad of distinct issues.

First off, its revenue has experienced a steady fall over the years; reasons for this is tied largely to its lack of importation of petroleum products.

It is also burdened by inefficiencies in its operations evident in its high operational and direct expenses, as well as its high debt over the past years. The company has carried on huge loans and borrowings in its books: N40.6 billion in 2019 and only a marginal reduction of N2.2 billion in the current year.

(READ MORE:Nigeria’s Bonga crude oil export terminal shut down)

Even higher are its expenses after an 8.38% reduction in the just-released results, it arrived at N69.7 billion for Q1 2020. Amongst its high operational expenses is the high and increasing technical fees it pays to its parent company. From N251 million in the first quarter of last year, it incurred around N700m in the year under review. It also has cash flow issues with about N22b in negative cash and cash equivalents. In its 2019 report, it revealed that the year had been tough with its cost of doing business rising exponentially as evident in its interest expense, 395% higher than the previous year as a result of repayment for products and a high level of borrowing.

Total Nigeria records loss for the first nine months of 2019, Analysis: Total Nigeria needs a financial overhaul

app

The company, in its last full year annual report, noted that to make significant savings to both operational and capital expenditure costs, a series of initiatives relating to cost efficiency, process optimization, and significant reduction of working capital requirement and finance costs, were put in place and are in motion for this year.

READ ALSO: STERLING BANK: Reduced fee income, weak operating efficiency drives steep decline in pre-tax profit

As Dr. Fatih Birol, IEA’s Executive Director put it “The coronavirus crisis is affecting a wide range of energy markets – including coal, gas, and renewables – but its impact on oil markets is particularly severe because it is stopping people and goods from moving around, dealing a heavy blow to demand transport fuels.”

However, Total’s position goes beyond the impact of the pandemic. Its rebound rests on its ability to carry on with cost control and lower debt commitments, together with the speed of the containment of the virus. That said, the company might need to raise capital soon while also coming up with formidable strategies to strengthen its business model.

Continue Reading

Blurb

Merger, Tax incentive boosts BUA Cement FY 2019 result

BUA Cement Plc recently released financials reveal a 47.5% increase in revenues of N175.52 billion up from N119 billion in 2018.

Published

on

BUA Cement gives succour to host communities in Edo

One of the industries set to experience the downsides of the Covid-19 pandemic is the construction industry. Given the slowdown in construction activities as a result of the lockdowns and constrained economic activities, the reasons are not farfetched.

Prior to the outbreak of the pandemic, Globe Newswire had predicted an accelerated growth pace of the global construction industry from 2.6% in 2019 to 3.1% in 2020. This growth has now been revised to 0.5%. What is even more daunting is that the revised growth rate is based on the assumption that the outbreak will be contained across all major markets by the end of the second quarter of 2020.

It is only after that (including freedom of movement in H2 2020) that events could facilitate reverting to the normal course of activities to foster businesses in the industry like BUA Cement or those that depend on it to restart activities.

Nigeria’s third-largest cement company, BUA Cement Plc, however, still has its 2019 victories in order. Involved in the manufacturing and sales of cement, BUA Cement has 3 major subsidiaries and plants in Northern and Southern Nigeria.

(READ MORE:Update: BUA Cement Plc lists N1.18 trillion shares on NSE)

With a market capitalisation of N1.18 trillion ($3.3 billion), BUA is the third most capitalised company on the NSE. Its recently released financials reveal a 47.5% increase in revenues of N175.52 billion up from N119 billion in 2018.

Kalambaina Cement Line 2, BUA Group, Kalambaina Cement, CCNN, Merger, Tax Incentive Boost BUA Cement FY 2019 Results

The company’s profits also increased by 69.1% from N39.17 billion in 2018 to N66.24 billion in 2019. Core operating performance was strong, and this was supported by strong cement sales in the domestic market, impairment writes back, and other income.

Deal book 300 x 250

The main reason for the company’s increased earnings is from the cost synergy and increased revenue as a result of the merger that took place between CCNN Plc and Obu Cement Company Limited.

There was also a striking jump in its income statement on its tax for the year. For FY 2019, it incurred a tax expense of N5.6 billion, in comparison to the N24.9 billion tax credit it received in FY 2018.

app

This was as a result of a reversal of previous tax provision made on Obu Line 1; it received approvals for an extension of the company’s pioneer status on Obu line-1 and Kalambaina line-2 in February 2020, to leave effective tax rate at just over 8% in 2019. The pioneer status will help the company save funds that will otherwise have been spent on higher taxes.

(READ MORE:Dangote Cement to access more debt funding)

BUA reported an impressive FY’19 result. Its performance shows the growing strength of the company and its increasing market share. On the back of the strong performance, management declared an N1.75 dividend per share that translates to a dividend yield of 5.5% on current prices.

Cash flow position was also robust with a strong closing cash balance – from N2.8 billion in 2018 to N15.6 billion as at year ended 2019. The company’s growth, as well as the impact of its merger, present a great buy opportunity of the highly capitalized, low-cost stock. As of today when the market closed (21st May) its share price stood at N35.60 from a 52-week range of N27.6 and N41.

READ ALSO: COVID-19: Best and worst case scenarios for the Nigerian economy

What we see is a great growth stock further heightened by the population expansion and increased urbanization. However, we expect the impact of the Covid-19 pandemic to be felt from the Q1 results of the company.

app

The industry could slow down for the year as the level of commercial construction also slows down. Yet the best part of holding stocks like this is that even with stalled operations for a period, a resurgence will always emerge.

Continue Reading

Blurb

Analysis: Airtel Nigeria is winning where it matters

Airtel has left no stones unturned in ensuring that its provisions are top-shelf – subscribers to the network, of course will have their own ideas.  

Published

on

Analysis: Airtel Nigeria is winning where it matters.

Airtel might have won our hearts over with internet-war adverts starring our favourite tribal in-laws, but its fundamentals are what will make us the bucks that keep us happy. Airtel Africa Ltd is a subsidiary of Indian telecoms group, Bharti Airtel Ltd; the group has left no stones unturned in ensuring that its provision of prepaid plans, credit transfers, mobile internet services, messaging, roaming facilities and more, are top-shelf – subscribers to the network, of course, will have their own ideas.

Since last year when Airtel Nigeria became the second telecommunication company in Nigeria listed on the NSE, the company has experienced a steady level of growth. With a presence in 14 African countries, the group’s strength lies in its diversity with stronger companies mitigating the poor performances of others.

Performance Overview: Airtel Africa 

Airtel Africa’s report for the year ended March 2020, revenue jumped by 10.9% from $3.1 billion at the year ended 2019 to $3.4 billion in 2020. The consolidated profit before tax also jumped by 71.8% from $348 million in 2019 to $598 million in 2020. However, profit for the period dropped by 4.23% with earnings of $408 million in 2020 from the $426 million it had earned in 2019. A reason for this is the tax figure that moved from a credit of $78 million in 2019 to tax payments as high as $190 million in 2020. Total assets also jumped by 2.41% from 2019’s value of $9.1 billion to $9.3 billion in 2020 primarily as a result of their acquisition of more property, plant, and equipment (PPE). The total customer base grew by 9.3% to 99.7 million for the year ended.

Full Report here.

Revenue growth of 10.9% was driven by double-digit growth in Nigeria and East Africa. However, the rest of its African operations experienced a decline in revenue. Its success in Nigeria is especially commendable, considering the fact that the company lost more than 100,000 subscribers in Nigeria between December 2019 and January 2020. Raghunath Mandava, Chief Executive Officer, remarked that the results which were in line with the group’s expectations, “are clear evidence of the effectiveness of our strategy across Voice, Data and Mobile Money.”

(READ MORE: NCDC and NNPC-IPPG reinforce #TakeResponsibility theme with multi-lingual campaign)

Behind The Numbers – Nigeria

Airtel Nigeria’s performance indicates the company is making the right calls in a very competitive industry. Nigerians are fickle when it comes to data and voice but will spend if the service is right. The company grew its data revenue by a whopping 58% to $435 million a sign that its strategy to focus on data is working. Voice Revenues for the year was up 15% to $850 million. In total, Airtel Nigeria’s revenue was up 24.4% to $1.37 billion. Ebitda margin, a number closely watched by foreign investors 54.2% from 49% a year earlier. Operating profit for the year ended also jumped by 52.6% for the year from 2019 and 32.4% from Q1 2019. Total customer base in Nigeria also grew by 12.5%.

Regulation forces Airtel Africa to initiate shares listing in Malawi , Analysis: Airtel Nigeria is winning where it matters.

Deal book 300 x 250

Nigeria is surely critical to Airtel Africa’s future seeing that it contributes about one-third of its revenue. Recent results thus indicate it is winning where it matters most and it must continue to stay this way if it desires to survive a brutal post-COVID-19 2020. Telcos are expected to be among the winners as Nigerians rely more on data to work remotely but there are other players in this game. Concerning the impact of the pandemic, he explained that at the time of the approval of the Group Financial Statements, the group has not experienced any material impact arising from the impact of COVID-19 on its business.

On cash flows…

The group has also taken measures to enhance its liquidity. The CEO explained that it is moving its focus to enhance liquidity towards meeting possible contingencies.

app

“Having considered business performance, free cash flows, liquidity expectation for the next 12 months together with its other existing drawn and undrawn facilities, the group cancelled the remaining USD 1.2 billion New Airtel Africa Facility. As part of this evaluation, the group has further considered committed facilities of USD 814 million as of date authorisation of financial statements, which should take care of the group’s cash flow requirement under both base and reasonable worst-case scenarios.”

To this end, they have put in the required strategies to preserve its cash as its cash and cash equivalents, consequently, jumped by 19.1%.

(READ MORE: COVID-19: MTN says it has put strict measures in place to preserve resources)

Buying opportunity

Investors looking at this impressive result will be wondering if this portends a buying opportunity. Airtel Nigeria closed at N298 on Friday and has remained at this price for about a month. The stock is quite illiquid and is not readily available to buy.

It’s the price to earnings ratio of 4.56x makes it quite attractive. Further highlighting this opportunity is its price-to-book ratio which is as low as 0.5273, suggesting that the stock could be undervalued. Whether it is available to be bought, is anyone’s guess.

 

app

 

 

Continue Reading