MTN Makes N2.01 Trillion Revenue in 2022, Declares N358.88 Billion PAT

MTN Nigeria Communications Plc has revealed its revenue for the year has grown by 21.64% from N1.65 trillion to N2.01 trillion.

In its audited results for the financial year ended 31 December 2022, the telecom company said the profit before tax (PBT) grew by 22.3% to N534.0 billion while profit for the year grew by 21.1% to N361.5 billion (excluding non-controlling interest).

Recording N358.88 billion as profit after tax, the telco noted its earnings per share (EPS) rose by 21.3% to N17.79 kobo as share price currently stands at N225.00k.

MTN Nigeria service revenue also increased by 21.5% to N2.0 trillion while earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 22.0% to N1.1 trillion  and EBITDA margin increased by 0.2 percentage points (pp) to 53.2%.

In addition, the result showed capital expenditure (Capex) rose by 23.5% to N504.3 billion (up 18.6% to N361.0 billion, excluding the right-of-use assets).

Commenting, MTN Nigeria CEO, Karl Toriola said, “Navigating a challenging operating environment “2022 was challenging due to global macroeconomic and geopolitical volatility, resulting in higher inflation, supply chain uncertainties, foreign exchange volatility and availability. In Nigeria, Inflation reached a 17-year high of 21.5% in November before moderating slightly to 21.3% in December, bringing the average for the year to 18.8% and putting pressure on consumer spending. To curb rising inflation, the Central Bank of Nigeria increased interest rates four times in 2022, bringing the Monetary Policy Rate to 16.5% – up by five pp during the year. This was further raised by 1pp in January 2023 to 17.5%.

We continued to manage and invest in the resilience of our business and networks, expanding coverage and capacity with a focus on expense efficiencies and disciplined capital allocation.

Finally, we significantly increased our shareholder base through MTN’s Offer for Sale, which was concluded on 31 January 2022, when the Securities & Exchange Commission’s (SEC) clearance of the Offer allotment was obtained. The Offer was the first phase of a series of transactions to increase Nigerian ownership in MTN Nigeria. As part of this, MTN Group offered an incentive of 1 bonus ordinary share for every 20 ordinary shares allotted, up to a maximum of 250 bonus ordinary shares per investor. The qualified investors who hold some or all the shares allotted to them for 12 months until 31 January 2023 (the qualification date) are eligible to receive the incentive shares in their Central Securities Clearing System (CSCS) account after the requisite regulatory approvals are obtained.