Telecoms

MTN Nigeria reports 4.7% drop in half-year profit

MTN Nigeria Plc has posted a profit after tax of N94.88 billion for the half-year ended June 30, 2020 as against N99.537 billion reported in 2019, accounting for a drop of 4.7 per cent. Profit before tax stood at N139.570 billion from N142.404 billion in 2019, a 2 per cent drop.

The telecom firm reported a half-year revenues of N637 billion in 2020 compared to N566.9 billion reported same period last year. The 12.5 per cent was driven by growth in data revenues in the first and second quarters of the year. The company reported a 57.6 per cent growth in data revenues in the half-year of 2020 as its Nigerian customers bought more data in the ensuing Covid-19 economic shutdown. MTN Nigeria CEO, Ferdi Moolman, comments: “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.

“Despite this, we have maintained double-digit service revenue growth of 12.6 per cent for H1, driven by strong growth in our key revenue lines. Data revenue rose by 57.6 per cent supported by an increase in data users and traffic. Revenue from digital and fintech services rose by 121.8 per cent and 29.6 per cent respectively, while voice revenue growth was 2.8 per cent amidst a change in traffic pattern following the lockdowns.

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