MTN Nigeria Deploys 2,260 4G Sites, Makes N421.49 Billion on Calls, Data

In an effort to boost its network coverage, MTN Nigeria Communications PLC has deployed 2,260 4G Sites.

Revealed in the company’s unaudited financial statement made available to Business Remarks, MTN Nigeria disclosed its focus on the 4G network and rural telephony programme.

This represents approximately 85% of the total sites deployed during the period which as a result is reflected in its solid data revenue growth.

According to the financial statement released active data users increased by 3.4 million to 35.9 million YoY. It added 1.6 million active users in Q1 2022 vs Q4 2021.

Although its mobile subscribers declined by 1.3 million to 70.2 million YoY,  the telco said this was impacted by the regulatory restrictions on new SIM sales and activations.

Active fintech subscribers however rose by 6.2 million to 10.7 million YoY, and it added 1.3 million subscribers in Q1 2022 vs Q4 2021. Its service revenue increased by 22.0 per cent to N469.8 billion.

Furthermore, it was revealed that MTNN made N421.49 billion from calls and data in the first quarter of 2022.

This represents a 20.32 per cent increase from N350.31bn that the telecoms company made from voice and data in the corresponding period of 2021. In its Q1, 2021 announcement, MTN revealed that it made N470.98bn in total revenue.

With the statutory 7.5 per cent consumption/transaction tax imposed as Value Added Tax (VAT) deductible at source, telecom subscribers paid nothing less than N31.62 billion as VAT on calls and data consumed in the first quarter of 2021.

Speaking on this, MTN Nigeria CEO Karl Toriola noted that the capital expenditure in the period was up by 80.8% off a lower base in Q1 2021 and aggressive coverage expansion to capture growth opportunities, focusing on the 4G network and rural telephony programme. We are also frontloading some of our CAPEX plans for the year as part of risk mitigation on supply chain disruption.

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“Core CAPEX, excluding the right of use assets, increased by 156.8%, with CAPEX intensity of 17.2% remaining within target levels. We deployed 2,260 4G sites, representing approximately 85% of the total sites deployed during the period and reflecting solid data revenue growth.

“Digital revenue grew by 35.3% as penetration of our digital products continues to deepen, driven by increased usage from our active base. We have reached 7.4 million digital subscriptions (up 164.1% YoY), with ayoba accounting for 45% of the subscriptions and Rich Media accounting for 55%.

“Revenue from digital services was driven by Rich Media, Mobile Advertising and Content VAS. We are transforming our Y’ello Digital Platforms into a one-stop destination that caters to all consumer segments.

“We have continued to make good progress in the first quarter, building on the momentum we achieved in Q4 2021 and delivering several key milestones as we grow our connectivity business and platforms” Karl noted.