MTN Nigeria is attracting more customers as it prioritises upgrading its network capacity to accommodate growth in traffic while continuing to expand 4G network coverage, albeit at a slower pace given the constraints presented by COVID-19.
In the first half of the year, MTN Nigeria achieved 6.8 million in net additions to connect over 71.1 million customers to its network.
The company also connected 3.8 million new users to the internet, bringing its active data subscribers to 29 million.
MTN Nigeria’s MoMo (mobile money) subscribers increased by 1.6 million to 2.2 million in the six months to end June, according to its first-quarter earnings announcement on Thursday.
Data revenue rose by 57.6% supported by an increase in data users and traffic.
Revenue from digital and FinTech services rose by 121.8% and 29.6% respectively, while voice revenue growth was 2.8% amidst a change in traffic patterns following the lockdowns.
However, the company said costs also increased leading to an overall decline in profit before tax and earnings per share.
“Following a strong first quarter, we experienced a challenging operating environment in the second quarter characterised by COVID-19 induced lockdowns and the broader macro-economic impact it has had,” MTN Nigeria CEO, Ferdi Moolman said.
“Despite this, we have maintained double-digit service revenue growth of 12.6% for H1, driven by strong growth in our key revenue lines.”
Moolman added that MTN Nigeria’s funding and liquidity remain well-managed, supported by strong cash flows and approved headroom facilities.
“Our headroom to leverage is comfortably within banking covenants and are able to meet our operational, investment and financial requirements and obligations. Our foreign currency exposure is within manageable limits, with 95% of our debt in local currency, so that our balance sheet can withstand currency volatility.
“Further impacts of COVID-19 are very uncertain and will depend on the evolution of the virus throughout the remainder of the year, any reinstatement or intensification of lockdowns and any other economic impacts caused by the global situation. However, we remain confident in the resilience of the business, and the ability of our employees to adapt as the situation develops.”