MTNN Dips 3%, Airtel Steadies Amidst Brand Cold War
MTN Nigeria Plc’s market valuation slumped 3% in the stock market while Airtel Africa traded sideways after the two leading telecom companies kickstarted a fresh, brand COLD war. The two rival brands are seeking to gain consumers’ attention with 5G network.
Following Airtel Nigeria’s 5G network launch, the telecom giant threw indirect jabs at each other as they compete for consumers’ wallets to drive earnings growth. In Nigeria, both MTN and Airtel are major rivals accounting for more than 60% of the industry assets.
The rivalry between the companies peaked following a moderate decline in mobile subscriptions in April, according to a regulator report. Nigerian Communications Commission (NCC) reported that mobile subscriptions declined marginally by 1% to 223.3 million in April 2023 from 225.8 million in March, indicating a decrease of 2.5 million subscribers.
MTN Nigeria recorded a decline in mobile subscriptions in April, though it maintained the industry’s leadership identity due to healthy past performance records. Despite the battle for supremacy, MTN continues to guide its 40% market share jealously.
MTN Nigeria remains the most preferred telecom service provider, according to Nigerian Communications Commission data. However, the telco giant lost market share to its immediate rivals in the industry in April.
In its latest release, NCC reported that Nigeria’s mobile subscriptions declined marginally by 1% to 223.3 million in April 2023 from 225.8 million in March, indicating a decrease of 2.5 million subscribers. Airtel Nigeria’s overall subscriptions grew to 60.33 million from 60.32 million in March.
Yesterday, MTN Nigeria kickstarted a cold brand war when it congratulates Airtel for the successful launch of its 5G network. “Congratulations Airtel Nigeria, it feels good to have company at last! Welcome onboard!”, MTN Nigeria said in a post on its social media.
In a swift, Nigeria subsidiary of Airtel Africa responded by saying, thank you @MTN Nigeria, “Truly, you’ve don’t a good job, but we know it can be better. We will take it from here. MTN Nigeria outraced Airtel Africa’s market valuation in the stock market amidst diverging investors’ sentiments.
Last year, the Yhello brand increased Nigerian investors’ market participation in its shareholding structure. However, Airtel Africa acquired Nigerian minority interests to boost shareholders’ value.
At the close of the trading session on Monday, the market placed N5.393 trillion market valuation on MTN Nigeria, spread across its 20.354 billion outstanding shares. Airtel Africa saw a flattish price movement that kept its market valuation at N4.844 trillion, spread across its 3,758 billion outstanding shares. #MTNN Dips 3%, Airtel Steadies Amidst Brand Cold War