MTN Nigeria Communications Plc’s group profit after tax was N1.165 trillion for the nine months through Sept. 30, a 55.3% year-over-year increase as data revenue grew and net finance costs fell.
Total revenue reached N4.613 trillion, an increase of 23.6%. Service revenue, a separate measure, rose 23.7% to N4.586 trillion, according to the company’s results.
Data revenue increased 35.8% to N2.684 trillion. MTN counted 57.2 million active data users, up 12%, while average monthly use per active data user rose 16.2% to 15.3 gigabytes. Network data traffic grew 30.1%. Chief Executive Karl Toriola pointed to a larger base of data users, heavier consumption and rising demand for home broadband. The figures extend the trend covered in EconoTimes’ earlier report on MTN Nigeria’s first-half network spending and traffic growth.
Profitability measures rose faster than revenue. EBITDA, or earnings before interest, taxes, depreciation and amortization, increased 36.8% to N2.624 trillion, and its margin widened by 5.5 percentage points to 56.9%. Operating expenses grew 8.5% to N1.422 trillion, while net finance costs declined 25.3% to N277 billion. Profit before tax rose 59.4% to N1.796 trillion; tax expense increased 67.6% to N630.5 billion.
Fintech revenue fell 25.9% to N97.5 billion. MTN attributed the decline to its suspension of airtime and data credit services between April and June, while reporting 102.2% growth in core mobile money revenue.
Capital expenditure excluding leases rose 14.2% to N864.8 billion. MTN said the spending supported network coverage and capacity, service quality and home broadband; its fiber-to-the-home network carried about 13% of total data traffic. Free cash flow increased 57.5% to N1.170 trillion, and the company reported paying N860.8 billion in dividends during the period.
MTN said cost control benefited from operational efficiencies, naira appreciation and value-added tax (VAT) input claims, even as diesel-related tower costs rose. The company said its results were within guidance for revenue growth of at least the low-20% range and an EBITDA margin in the mid-to-high-50% range. Its next analyst and investor call is scheduled for 9 a.m. ET (14:00 UTC), or 3 p.m. West Africa Time, on Monday, Nov. 2.
