By Dipo Olowookere
Africa’s leading telecommunication company, MTN Nigeria Plc, had a good year in 2020 despite the disruption caused to businesses across the globe.
In the year, according to the financial statements of the firm released to the Nigerian Stock Exchange (NSE) and analysed by Business Post, the sum of N1.4 trillion was generated in the year, higher than the N1.2 trillion achieved in 2019.
A significant part of the revenue was contributed by voice revenue, N766.4 billion versus N725.5 billion, while data revenue contributed N332.4 billion in contrast to N219.4 billion in 2019.
However, the direct network operating costs increased to N310.3 billion from N246.6 billion as a result of a rise in BTS leases to N225.6 billion from N170.1 billion, a jump in the regulatory fees to N34.8 billion from N30.3 billion and a rise in the network maintenance to N48.6 billion from N45.2 billion.
In the period under review, the telco reduced its roaming costs to N3.0 billion from N4.0 billion. It also cut is advertisements, sponsorships and sales promotions to N15.1 billion from N19.9 billion, while the other operating expenses moved higher to N66.6 billion from N51.0 billion due to the N2.0 billion expended on COVID-19, including the N1 billion donation to the Coalition Against COVID-19 (CACOVID) in April 2020 and costs of Personal Protective Equipment (PPE).
As of December 31, 2020, MTN Nigeria was left with an operating profit of N426.7 billion, higher than N393.2 billion a year earlier.
With a finance income of N15.9 billion versus N20.1 billion and N143.7 billion finance costs in contrast to N122.1 billion a year earlier, the GSM network provider was left with a profit before tax of N298.9 billion compared with N291.3 billion in 2019, while the profit after tax stood at N205.2 billion, slightly higher than N203.3 billion as at December 31, 2019, with the earnings per share closing at N10.08 as against N9.99 in 2019.
Meanwhile, the board of directors of MTN Nigeria has recommended the payment of a final dividend of N5.90 per ordinary share of 2 kobo each subject to shareholders’ approval at the forthcoming Annual General Meeting (AGM).
If the proposed final dividend is approved, the total dividend for the financial year ended December 31, 2020, will be N9.40 per share of 2 kobo each.
