MTN Nigeria Communications Plc has released its unaudited financials for the half-year ended June 30, 2019,
The company recorded growth in revenue by 12.14% from N505.667bn in half-year 2018 to N566.946bn in half-year ended June 30, 2019. The management has attributed the growth in revenue was as a result of growth in voice revenue by +11.4% to N421.1bn, and data revenue by +30% to N103.3bn. As 3.3 million Customers were added to the network, increasing the subscriber base to 61.5 million. Also, the data subscribers increase in the period by 2.1 million to 20.7 million.
The half-year 2019 result recorded an EBITDA margin of 53.8% on account of the implementation of IFRS 16. On an IAS 17 bass, operating expenses increased by 9.7%, below inflation. The 1.5pp improvement in the EBITDA margin was supported by a stable naira against the US dollar benefiting our operating expenses as well as lower digital expenses arising from our VAS optimization initiatives.
Pre-tax profit grew 31% to N141.8bn in H1 2019 from N108.4bn in H1 2018. A lower effective tax of 30% in H1 2019 compared to 32% in H1 2018 ensures Profit after tax grew by 35% to N98.9bn in H1 2019 from N73.2bn in H1 2019.
EPS grew by 35% to N4.86 in H1 2019 compared to N3.60 in H1 2018. The firm declared an interim dividend of N2.95 per 2kobo share, translating to a payout ratio of 60.7%.
The interim dividend is payable to shareholders whose names appear in the register of members as at close of business on August 8, 2019. The payment date will be on August 16, 2019.
The company announced that the rest of the year will be a focus on strategy to build a sustainable business and create value for customers. “We will continue to progress in the second half of the year making improvements to our network experience, subscriber growth and enhance operational efficiency. We expect lower data pricing and our acceleration of the 4G network expansion to bolster the acquisition of customers and data traffic volumes in the second half” said the Chief Executive Officer Mr.Ferdi Moolman.