MTN hits 78m subscribers in Q1 2024
MTN Nigeria has announced that as of March 31, 2024, its total subscribers grew by 1.3 percent to 77.7 million users from 76.7 million during the same period in 2023.
The company’s Chief Executive Officer, Karl Toriola, highlighted this in its unaudited financial statement submitted to the Nigerian Exchange Ltd. (NGX) in Lagos.
However, Toriola said the adoption of NIN-SIM directive had an adverse effect on the growth of its user base, resulting in a two million decrease in subscribers as compared to the year that concluded in December 2023.
In comparison to 41.2 million recorded in the same quarter of 2023, he mentioned that the number of active data customers for the telecom service provider climbed by 8 percent to 44.5 million in the quarter under review.
He said: “Active mobile money (MoMo PSB) wallets of the service provider increased by 48.7 percent to 4.8 million in the first quarter of 2024, from 3.2 million recorded in the first quarter of 2023.
“Total revenue also increased by 32.5 per cent to N752.98 billion in the period under review, as against N568.13 billion posted in the corresponding period of 2023.”
The CEO noted the telecom company’s Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) decreased by 1.9 percent to N297 billion as of March 31, 2024, according to the managing director.
This according to him contrasted with the N303 billion reported during the same period in the previous year.
“The company recorded a net loss of N392.69 billion for the quarter under review, indicating 462.2 percent decline, compared to N108.43 billion posted in the same quarter of 2023.
The company’s cumulative losses and negative shareholders’ funds increased to N599.2 billion and N434.7 billion, respectively, as a result of the quarter’s net loss, Toriola stated, adding that the robust operating performance of the company was obscured by substantial macroeconomic challenges.
He said: “The operating environment in the first quarter remained very challenging, with rising inflation and continued naira depreciation off an already low base.
“The Naira depreciated to an all-time low of N1,627/per dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) in March, from N907 per dollar at the end of December 2023, before moderating to N1,309 per dollar by the end of the quarter.
“Additionally, the inflation rate maintained an upward trajectory, rising to 33.2 percent in March with an average rate of 31.6 percent in the quarter.
“During the quarter, we also continued to manage the effects on our business of the industry-wide directive of the Nigerian Communications Commission (NCC) for a full barring of subscriber lines not linked to their National Identity Number (NIN) – the NIN-SIM directive.”
According to the CEO, the telecom service provider implemented a directive on subscribers without NIN submission and those with more than five lines linked to an unverified NIN which impacted the development of its users’ base across all of its key business units including voice, data and fintech in Q1.
Notwithstanding, he assured of the company’s commitment to serve customers despite challenges, noting it would also prioritise value-based capital allocation, disciplined expansion of its commercial operations, and cost-cutting measures.
