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For MTN Nigeria voice revenue growth remains healthy at 8.4%

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Voice revenue growth remained healthy for MTN Nigeria at 8.4% and accounted for 72.7% of service revenue according to the audited (account) results for the full year ended 31 December 2019.

Voice traffic increased by 7.6%, supporting revenue growth.

Commenting on the account results, MTN Nigeria CEO, Ferdi Moolman said:

“In addition, we have seen rapid acceleration in data revenue growth enabled by greater population coverage, a revamp of our data portfolio and initiatives to drive 4G device penetration. We added 5.3 million new smartphones to our network, bringing smartphone penetration to 41.8% of our base, while data traffic rose by 85.8%. Our interventions in the year helped to drive a 42.4% increase in data revenue for the year (63.1% YoY in Q4 2019). Data contributed 18.8% to service revenue, up 3.9pp from 14.9% in 2018.

CEO, MTN Nigeria, Ferdi Moolman

“Digital revenue gained momentum as we started to see quarterly growth from Q3 2019. We further focused on building a sustainable active user base for our digital business, while improving the customer journey and experience on value-added services (VAS).

“In Q4 2019, we launched MusicTime, one of our flagship digital offerings. The active base for our digital subscriptions surpassed 2.1 million users during the year, as we continue to build critical mass for our portfolio of digital products and services. On a sequential QoQ  basis, digital revenue increased by 23.0% and we target sustained growth into 2020.

“Fintech revenue growth was 23.3%, supported by increased adoption of MTN Xtratime, our airtime lending service. We launched a super-agent service in August and are pleased with the initial rollout and uptake of the service. We closed the year with a network of 108,000 agents registered nation-wide. The agent network served almost one million customers in the first four months of operation, and we are maintaining our focus on further expansion. To cater to a broader market and encourage further adoption, we are also widening the service offering – from basic transfer service and airtime/data sales to a more extensive bouquet, including cash deposit and withdrawal services, bill payments and facilitating e-commerce.

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“Our enterprise  business segment continued to deliver solid results, with revenue growth of 20.3%.

MTN Momo Agent

MTN Momo Agent

“On the cost side, the increase in operating expenses on an IAS 17 basis was 4.4%, which was below the rate of inflation. This reflects progress with our cost management initiatives and reduction of non-recurring expenses. We maintained our leadership position in network net promoter score (NPS) as we continued to invest to improve service quality and drive 4G expansion.

“This resulted in a 13.1% increase in capital expenditure and capex intensity of 17.8% on an IAS 17 basis. Our overall cash flow performance was pleasing, with a 26.6% growth in free cash flow to N316.1 billion (IFRS 16: 51.4% to N378.0 billion).

“Overall, our bottom-line remained strong with growth of 31.1% and 38.8% respectively in profit before and after tax. Earnings per share increased by 38.8% to N9.9k”, he said.

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