MTN Nigeria Dazzles with Double-Digit Earnings Growth

MTN Nigeria Dazzles with Double-Digit Earnings Growth

MTN Nigeria Plc.’s revenue increased significantly, up by 20.71% at the end of 9-month of the financial year 2022 to N1.456 trillion from N1.206 trillion, according to its interim result for the third quarter of 2022 submitted to the Nigerian Exchange.

The telecom company’s overall revenue performance was supported by healthy growth across revenue sources including data, SMS, interconnected roaming and other revenue lines. However, revenue from the voice segment was unimpressive in the period compared with growth seen in other areas.

The strong topline growth seen in the period resulted in healthier profitability in the same period, though stock market performance appears to have slowdown amidst selloffs.  In the period, MTN Nigeria’s earnings per share (EPS) surged to N1,330, up more than 22% from N1,082 in the comparable period.

Ahead of the dividend declaration, stockbrokers told MarketForces Africa that more investors and value hunters in the local bourse will position due to expectation of upside potential after the telco’s earnings beat. Already, Broadstreet has expressed satisfaction with the telecom leader’s stronger than expected profit declaration.

On the costs side, MTN Nigeria’s direct network operating costs inched upward 14.43% year on year to N333.925 billion amidst a higher inflation rate, from N291.815 billion in the comparable period in 2021.

Though finance costs rose, detail from the interim financial statement shows that profit after tax popped higher by 22.12% year on year to N2269.039 billion, from N220.312 billion 12-month ago. The company’s net finance costs rose 41.25% to N137 billion in the period from about N97 billion in the comparable period.

For the third quarter, the company reported sales was N506.048 billion compared to N414. 997 billion a year ago. Detail from the interim result showed that the company’s net income was N88.403 billion compared to N78. 481 billion a year ago.

Consequently, basic earnings per share from continuing operations printed at N4.35 compared to N3.86 a year ago. Meanwhile, diluted earnings per share from continuing operations was N4.35 compared to N3.86 a year ago.

“We expect cash flow contribution from Nigeria, MTN’s largest country of operations, to reduce but credit quality will be preserved thanks to low leverage and strong liquidity”, Moody’s said. 

Detail from the result shows that MTN Nigeria’s borrowing increased by 19.61% from the beginning of the year to N1.416 trillion from N1.184 trillion as of December 2021. Other liabilities also inched upward by more than 15%. #MTN Nigeria: Why You Should Not Miss 575mln Shares Public Offer

In the 9-month period, the telecom giants grew the balance sheet by about 7% to N2.417 trillion from the beginning of the year when the total asset was valued at N2.259 trillion.  #MTN Nigeria Dazzles with Double-Digit Earnings Growth