MTN Nigeria raked in a whopping N127 billion from data subscription revenue for the year ended 2017. The telecoms giant revealed this in its 2017 annual report released last week.
According to MTN, data revenue was R4,376 million up 89% year on year giving a naira value of about N126.9 billion using an exchange rate of N29.05 (MTN used this as its closing exchange rate for the year) to one South African Rand.
MTN Nigeria (MTNN) made a whopping N1 trillion up 27% year on year (in Naira terms). MTNN reports in South African Rands and suffered exchange rate losses due to the devaluation of the Naira in 2017 compared to 2016.
MTN also reported that it made R3.8 billion (N112.3 billion) from digital revenue for the year under review.
MTN on Exchange rate
“The stronger rand and the significant year-on-year (YoY) depreciation of the naira against the US dollar had a negative translation impact on rand-reported results for the period. The average naira depreciated by 25,8% against the US dollar in the year, and the closing rate was down 13,1% YoY. The average rand strengthened by 9,6% against the US dollar YoY and the rand closed 10,7% stronger. In light of recent developments in South Africa, we expect the rand to remain robust throughout 2018.” MTN
MTN on Data revenue
“According to MTN, Data revenue increased by 34.2%, benefiting from significantly improved data network quality and capacity across their key markets and a continued increase in active data users to 69.1 million.
Data revenue increased in South Africa (up 25.8%∆), Nigeria (up 86.6%), Uganda (up 41.4%), Ghana (up 50.6%), Cameroon (up 21.1%) and Ivory Coast (up 87.5%*).”
MTN on Digital Revenue
“Digital revenue increased by 14.2%*, underpinned by solid growth in MFS. This was partly offset by slower growth in VAS revenue, impacted by the optimisation of the VAS business across our markets, in particular, Nigeria. Our e-commerce JVs, while being equity accounted as opposed to consolidated within the results, remain an important element of our digital strategy. We will work to further enhance synergies between our existing platform and our e-commerce businesses.”
MTN Internet Subscribers
Data from the NCC reveals MTN has about 36,069,597 internet subscribers up from 31,753,369 in December 2016. Nigeria has a total internet subscriber base of 98,391,456 up from 91,880,032 in December 2016.
Internet subscription growth has catapulted revenues for most telcos in a period where voice calls have fallen under intense competition from Voice Over Internet Protocol companies. For MTN the strategy over the last few years is to expand on its digital and data subscription divisions to drive revenue growth across its country of operations.
The company has also relied heavily on Nigeria to drive its revenue growth, with the country\’s making up over 50% of its revenue.
MTN plans to list on the Nigerian Stock Exchange and disclosed in its annual report that it is making good progress and will be listing on the Premium Board in 2018.
It is also interesting to note that MTN Digital, which comprises its Value Added Services (VAS), E-commerce and Mobile Financial Services (MFM) business, generated a massive N112.3 billion business down 3.5% Year on Year (YOY).
MTN reported that the group added 5.7 million active MTN Mobile Money (MoMo) customers during the year.