Economy
MTN to Pay N3.50 Interim Dividend Amid 4.7% Drop in Profit
By Dipo Olowookere
Shareholders of MTN Nigeria Communications Plc will get the sum of N3.50 paid to them for each of the company’s stock in their possession.
This is what the board of the telco is proposing to pay as an interim dividend for the half-year ended June 30, 2020.
This information was contained in the financial statements of the organisation submitted to the Nigerian Stock Exchange (NSE).
The interim dividend is subject to appropriate deduction of withholding tax and will be paid to shareholders whose names appear in the register of members as at the close of business on August 14, 2020, MTN Nigeria said.
Also, it stated that the register of members will be closed from August 17, 2020, while the cash reward would be paid electronically directly to bank accounts of shareholders on August 24, 2020.
In the period under review, MTN Nigeria increased its revenue by 12.5 per cent to N638.1 billion from N567.0 billion in the corresponding period of last year.
The 15.6 per cent growth in the mobile subscriber base of MTN Nigeria to 71.1 million provided support for the 2.8 per cent rise in the voice revenue, which contributed 67.9 per cent to the service revenue of N637.0 billion versus N565.9 billion in H1 2019.
Also, data revenue, which accounted for 24.2 per cent of the service turnover, grew in the period by 57.6 per cent to N154.1 billion from N97.8 billion in the first six months of 2019.
According to the telco, this significant increase in data consumption of its customers was achieved through improved 4G penetration and enhanced network capacity to support traffic growth due to the lockdown imposed on Lagos, Abuja and Ogun State in the most part of the second quarter of the year by the federal government.
In the period under review, 4.0 million new smartphones were added to MTN Nigeria network, bringing the smartphone penetration to 43.5 per cent on its base.
Also, in the first half of 2020, the digital revenue of MTN Nigeria continued to rise, with digital offerings recording a growth of 121.8 per cent and this was because of the uptake of its digital products and services.
In addition, fintech revenue recorded a growth of 29.6 per cent, driven by the airtime lender platform called MTN Xtratime as well as the agent network. The total number of transactions processed by its agents during the period was over 14.6 million.
For capital expenditure, there was a 20.9 per cent decline to N76.0 billion because of slower site rollout caused by port congestion, movement restriction and scarcity of foreign exchange.
Also, the pre-tax profit of MTN Nigeria dropped 2.0 per cent as a result of an increase in finance costs from higher borrowing. In the first half of the year, the company issued a N100 billion commercial paper at 5.74 per cent, allowing the firm to widen its sources of funding.
In addition, the post-tax profit and earnings per share (EPS) depreciated by 4.7 per cent respectively, reflecting an increase in taxation mainly due to lower investment allowance and exempt income.
By Aduragbemi Omiyale
The ban on the export of raw shea nuts from Nigeria has been extended by one year by President Bola Tinubu.
A statement from the Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, on Wednesday disclosed that the ban is now till February 25, 2027.
It was emphasised that this decision underscores the administration’s commitment to advancing industrial development, strengthening domestic value addition, and supporting the objectives of the Renewed Hope Agenda.
The ban aims to deepen processing capacity within Nigeria, enhance livelihoods in shea-producing communities, and promote the growth of Nigerian exports anchored on value-added products, the statement noted.
To further these objectives, President Tinubu has authorised the two Ministers of the Federal Ministry of Industry, Trade and Investment, and the Presidential Food Security Coordination Unit (PFSCU), to coordinate the implementation of a unified, evidence-based national framework that aligns industrialisation, trade, and investment priorities across the shea nut value chain.
He also approved the adoption of an export framework established by the Nigerian Commodity Exchange (NCX) and the withdrawal of all waivers allowing the direct export of raw shea nuts.
The President directed that any excess supply of raw shea nuts should be exported exclusively through the NCX framework, in accordance with the approved guidelines.
Additionally, he directed the Federal Ministry of Finance to provide access to a dedicated NESS Support Window to enable the Federal Ministry of Industry, Trade and Investment to pilot a Livelihood Finance Mechanism to strengthen production and processing capacity.
Shea nuts, the oil-rich fruits from the shea tree common in the Savanna belt of Nigeria, are the raw material for shea butter, renowned for its moisturising, anti-inflammatory, and antioxidant properties. The extracted butter is a principal ingredient in cosmetics for skin and hair, as well as in edible cooking oil. The Federal Government encourages processing shea nuts into butter locally, as butter fetches between 10 and 20 times the price of the raw nuts.
The federal government said it remains committed to policies that promote inclusive growth, local manufacturing and position Nigeria as a competitive participant in global agricultural value chains.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange expanded for the first session this week by 1.27 per cent on Wednesday, February 25.
This lifted the NASD Unlisted Security Index (NSI) above 4,000 points, with a 50.45-point addition to close at 4,025.25 points compared with the previous day’s 3,974.80 points, as the market capitalisation added N30.19 billion to close at N2.408 trillion versus Tuesday’s N2.378 trillion.
At the trading session, FrieslandCampina Wamco Nigeria Plc grew by N5.00 to trade at N100.00 per share compared with the previous day’s N95.00 per share, Central Securities Clearing System (CSCS) Plc improved by N4.18 to sell at N70.00 per unit versus N65.82 per unit, and First Trust Mortgage Bank Plc increased by 14 Kobo to trade at N1.59 per share compared with the previous day’s N1.45 per share.
However, the share price of Geo-Fluids Plc depreciated by 27 Kobo at midweek to close at N3.27 per unit, in contrast to the N3.30 per unit it was transacted a day earlier.
At the midweek session, the volume of securities went down by 25.3 per cent to 8.7 million units from 11.6 million units, the value of securities decreased by 92.5 per cent to N80.7 million from N1.2 billion, and the number of deals slipped by 33.3 per cent to 32 deals from the preceding session’s 48 deals.
At the close of business, CSCS Plc remained the most traded stock by value on a year-to-date basis with 34.1 million units exchanged for N2.0 billion, trailed by Okitipupa Plc with 6.3 million units traded for N1.1 billion, and Geo-Fluids Plc with 122.0 million units valued at N478.0 million.
Resourcery Plc ended the trading session as the most traded stock by volume on a year-to-date basis with 1.05 billion units valued at N408.7 million, followed by Geo-Fluids Plc with 122.0 million units sold for N478.0 million, and CSCS Plc with 34.1 million units worth N2.0 billion.
By Dipo Olowookere
The bears consolidated their dominance on the Nigerian Exchange (NGX) Limited on Wednesday, inflicting an additional 0.09 per cent cut on the market.
At midweek, the market capitalisation of the domestic stock exchange went down by N73 billion to N124.754 trillion from the preceding day’s N124.827 trillion, and the All-Share Index (ASI) slipped by 114.32 points to 194,370.20 points from 194,484.52 points.
A look at the sectoral performance showed that only the consumer goods index closed in green, gaining 1.19 per cent due to buying pressure.
However, sustained profit-taking weakened the insurance space by 3.79 per cent, the banking index slumped by 2.07 per cent, the energy counter went down by 0.24 per cent, and the industrial goods sector shrank by 0.22 per cent.
Business Post reports that 25 equities ended on the gainers’ chart, and 54 equities finished on the losers’ table, representing a negative market breadth index and weak investor sentiment.
RT Briscoe lost 10.00 per cent to sell for N10.35, ABC Transport crashed by 10.00 per cent to N6.75, SAHCO depreciated by 9.98 per cent to N139.35, Haldane McCall gave up 9.93 per cent to trade at N3.99, and Vitafoam Nigeria decreased by 9.93 per cent to N112.50.
Conversely, Jaiz Bank gained 9.95 per cent to settle at N14.03, Okomu Oil appreciated by 9.93 per cent to N1,765.00, Trans-nationwide Express chalked up 9.77 per cent to close at N2.36, Fortis Global Insurance moved up by 9.72 per cent to 79 Kobo, and Champion Breweries rose by 5.39 per cent to N17.60.
Yesterday, 1.4 billion shares worth N46.2 billion were transacted in 70,222 deals compared with the 1.1 billion shares valued at N53.4 billion traded in 72,218 deals a day earlier, implying a rise in the trading volume by 27.27 per cent, and a decline in the trading value and number of deals by 13.48 per cent and 2.76 per cent, respectively.
Fortis Global Insurance ended the session as the busiest stock after trading 193.7 million units for N152.7 million, Zenith Bank transacted 120.7 million units worth N11.1 billion, Japaul exchanged 114.8 million units valued at N407.0 million, Ellah Lakes sold 98.4 million units worth N999.2 million, and Access Holdings traded 63.1 million units valued at N1.7 billion.
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