WorldStage Newsonline– MTN Nigeria Communications Plc (MTNN) has released its second quarter 2024 (Q2-24) unaudited results with a pre-tax loss amounted to N175.60 billion from a pre-tax loss of N282.35 billion in Q2-23, while loss after tax dropped by 34.87% to N126.36 billion from a loss after tax of N194.02 billion in Q2-23 following a tax credit of NGN49.24 billion from N88.32 billion in Q2-23.
The company’s service revenue grew by 33.1% y/y in Q2-24 (H1-24: +32.6% y/y) following a broad-based increase across MTNN’s value channels – Voice (+10.0% y/y), Data (+56.0 y/y), Digital (+107.9% y/y), Fintech (+22.2% y/y) and Others (+55.6% y/y).
According to management, voice revenue growth (+10.0% y/y | 40.1% of total revenue) was supported by increased usage of voice services, and a higher subscriber base.
Specifically, MTNN’s subscriber count increased by 2.9% in H1-24 to 79.40 million, with the addition of 2.3 million customers (Q2-24: net addition of 1.70 million) showing management’s efforts to retain customers affected by the Nigerian Communication Commission’s (NCC) directive on NIN-SIM linkage.
Likewise, growth in data revenue (+56.0% y/y | 48.4% of total revenue) was driven largely by increased usage and an expanded data subscriber count (+11.2% y/y in H1-24 to 45.60 million | net addition of 1.10 million in Q2-24). Management highlighted that this was supported by a strong demand for data with total data traffic increasing by 42.6%, and data usage (GB per user) increasing to 10.6GB (+30.5% y/y).
Total expenses in the quarter grew by 92.0% y/y (H1-24: +82.2% y/y) owing to naira depreciation; higher energy costs, and; VAT payment on tower leases.
Consequently, EBITDA margin declined by 20.90 ppts y/y to 31.9%. Accordingly, H1-24 EBITDA margin fell by 17.44 ppts y/y to 35.6%. Stripping out the effects of currency weakness on operating performance, management noted that EBITDA margin in H1-24 would have printed 50.9%.
Net finance costs (+60.4% y/y) rose markedly during the quarter owing to a 48.6% y/y increase in finance costs.
The higher finance cost balance was as a result of higher interest expense on leases (+28.6% y/y) and a jump in prepaid transactions costs (Q2-24: NGN26.07 billion | Q2-23: NGN927.00 million).
Meanwhile, net FX loss declined by 48.6% y/y in Q2-24 but increased by 95.2% y/y in H1-24 highlighting the substantial exchange loss incurred in Q1.
Meanwhile, the telco reported a loss per share of N6.08 from loss per share of N9.22 in Q2-23, bringing the H1-24 loss per share to N24.71 from loss per share of N4.09 in H1-23 due to the higher net FX loss (+95.2% y/y) recorded in the period.
