Nigerian telecommunication company, MTN Nigeria has reported a total profit of N181 billion for the first half of the year 2022. The amount is 28% more than what was recorded in the same period of last year at N141.8 billion.
The financial report by the firm shows that this could be attributed to a boost in its revenue in the first half of the year by 20% in spite of the double-digit inflation seen during the period. Total revenue for the first six months was N950 billion, a 20% spike from 791 billion in the first half of last year.
The company increased revenue from contracts with customers in all ramifications with Voice generating the most revenue; Voice, Data and SMS saw improved revenue from N412 billion, N229 billion, and N22 billion to N417 billion, N348 billion, and N29 billion.
The story behind the numbers
While revenue attributed to other items such as intercommunication and roaming jumped from N83 billion to N94 billion, Handset and accessories rose from N964 million to N2 billion, and Digital spiked from N8 billion to N11 billion, and value-added services were up from N31 billion to N39 billion.
- In line with the increase in revenue, the company also increased spending across direct network operating costs, costs of starter packs, handsets and accessories, value-added services, employee costs, and others.
- Similarly, spending on publicity increased by 67% to a record N14 billion from N8.6 billion. Indicating that the increase in revenue may be due to the effort made by the company to promote its presence and reach more Nigerians.
Other key highlights of the result
- The company increased its taxation during the period from N73 billion to N87 billion.
- Recall that the company recently cleared the air on discrepancies in the figure it has paid as tax to the federal government of Nigeria and its relevant agencies through taxes, levies, fees, and duties.
- It stated that as of 31st December 2021, it had reported a total contribution of up to N757.7 billion to the federal government of Nigeria and its relevant agencies through taxes, levies, fees, and duties.
- MTN Nigeria also increased the basic/diluted earnings per share from N6.97 in of first half of last year to N8.92 as of the first half of this year, showing a 28% increase.
As of the market close on Friday, 29th of July 2022, MTN’s share price is worth N200.1 and its market capitalization is N4.07 trillion.
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