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FX-Linked Costs to Pressure Earnings of MTN, Airtel, Others

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By Modupe Gbadeyanka

The present foreign exchange (forex) crisis in Nigeria will pose a huge threat to the 2020 earnings of players in the nation’s telecommunications sector, the Head of Equity Research at FBNQuest, Mr Tunde Abidoye, has projected.

In a research note made available to Business Post, he said though now more than ever, the industry was set to take a leading role in the government’s effort to diversify the economy, the FX issue could truncate this.

It was stated that through consistent significant investments by the mobile networks, the sector’s contribution to GDP has risen steadily from about 7.7 per cent in 2012 to 10.9 per cent in Q1 2020, now larger than that of the oil sector (9.5 per cent Q1 2020 oil GDP).

With respect to broadband, studies conducted by the International Telecommunications Union (ITU) indicate that a 10 per cent increase in broadband penetration is likely to translate to increases of 2.0 per cent and 1.8 per cent in GDP for low-income and middle-income countries.

The targets (of 90 per cent broadband coverage at speeds of 10Mbps-25Mbps) stated in the national broadband plan 2020 is ambitious and audacious.

“Notwithstanding, we believe they are achievable. The plan’s success will depend on the right mix of policy implementation, private sector-led infrastructure investment, and government incentives. Specifically, impediments to right-of-way access and cost must be removed,” the note said.

In contrast to other sectors that were hit hard by the economic outcomes of the COVID-19 pandemic, the sector was one of the few that recorded growth in Q1.

Its essential role in easing the lockdown through the provision of digital tools for home working and social distancing resulted in a surge in demand for telecom services during the quarter.

In Q1, MTN Nigeria (MTNN) and Airtel Nigeria (not covered) both delivered strong revenue growth of 17 per cent y/y and 27 per cent y/y respectively, mainly driven by stellar growth in data revenue – which were up by more than 50 per cent for both firms.

The solid performance was carried on into Q2 on the back of strong data demand during the lockdown, with solid revenue growth of 17 per cent y/y (data 40 per cent y/y), Airtel’s Q1 2021 (end-June 2020) results which were recently published, providing positive read-across for the broad sector.

“Due to FX liquidity pressures, we expect a rise in FX-linked costs to exert downward pressure on the earnings of telecom operators,” it noted.

Recently, MTNN disclosed that the NAFEX rate of N385/$1 will now be applied to dollar-linked tower costs (vs. CBN’s official rate of N360 previously). The rate was only recently reviewed to N360/$1 in April (from N307 previously).

“However, we believe that the revenue growth from the surge in data traffic will more than offset the rise in costs.

“Regardless, our estimates are conservative. For MTNN, we forecast 2020 revenue and PBT growth of 13 per cent y/y and 6 per cent y/y respectively,” FBNQuest said.

The Nigerian Communications Commission (NCC) takes the quality of service (QoS) very seriously. As such, on a monthly basis, it measures the operators on four key QoS performance indicators namely; (1) the call setup success rate (CSSR), (2) dropped call rate (DCR), (3) the standalone dedicated control channel congestion (SDCCH), (4) the traffic control channel congestion rate (TCCH). The most recent disclosure (October 2019) from the NCC shows that MTNN and Airtel were within the required threshold for all the KPIs, it added.

It was stated that an independent survey on the service quality of GSM operators conducted by REACH Technologies, an indigenous fintech firm, corroborates the results of NCC’s monthly QoS assessment.

The random survey draws a conclusion from a sample size of 133 respondents residing in Nigeria’s urban region. Out of a maximum score of five points, MTNN scored the highest number of points – 2.3 points – on a weighted average basis. Airtel was the next best in terms of QoS with a score of 1.

About 60 per cent of the 133 respondents that were randomly polled subscribe to the MTNN network. This result is important because it underscores MTNN’s larger wallet share of urban subscribers.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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OPay, Coinbase, Others Crash as Cloudflare Suffers Another Glitch

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Daudu Gotring OPay

By Adedapo Adesanya

Cloudflare Incorporated, a business providing cloud-based services to various enterprises, said in a note on Friday it is investigating issues with its Dashboard and related Application Programming Interfaces (APIs).

Numerous companies and services, including payments platform like OPay as well as Canva, Coinbase Global Incorporated, Investing.com , Shopify Incorporated, and Zoom Video Communications Incorporated, all appeared to crash, with some seeing “500 internal server error” and “Please check your internet connection and try again”.

The global outage has left many users unable to access these key services as this disruption has not only affected individuals but also businesses relying on these platforms for their operations.

Customers using the Dashboard or Cloudflare APIs are impacted as requests might fail and errors may be displayed, the company said on its status page.

In its latest update, Cloudflare added that “a fix has been implemented,” with the firm monitoring the results.

Users from all over the world have taken to social media platform X (formerly Twitter) to voice their frustrations over the issue.

This is Cloudflare’s second major disruption in nearly a month, following another incident in November that affected services like Spotify and ChatGPT.

At the last outage, Cloudflare’s services were largely restored within three hours, and fully restored after approximately five hours.

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Google Unveils AI Skilling Blueprint for Africa

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Google AI Skilling Blueprint for Africa

By Modupe Gbadeyanka

As part of broader Africa-focused Artificial Intelligence (AI) initiatives, Google has launched the AI Skilling Blueprint for Africa, designed to help governments build a future-proof workforce.

The programme provides governments with a comprehensive, step-by-step guide to formulate national skilling strategies. It focuses on developing three critical cohorts: AI Learners, who will gain foundational AI literacy; AI Implementers, professionals upskilled to integrate AI tools into their work; and AI Innovators, deep technical experts dedicated to building the next generation of AI solutions.

Africa is home to the world’s youngest and fastest-growing population. The continent shows immense potential for AI-driven economic growth.

However, new research highlights a significant challenge: while optimism for AI is exceptionally high, reaching 95 per cent in Nigeria and 76 per cent in South Africa, 55 per cent of firms across the continent report needing AI talent more than financing. Closing this skills gap is key to unlocking Africa’s opportunity.

Google’s Vice President of Government Affairs and Public Policy, Doron Avni, explained that, “The AI Skilling Blueprint provides a clear roadmap for governments to build the workforce of the future.

“By also investing in AI-ready data and expert local organisations and partners, we are helping build the interconnected ecosystem needed for a prosperous, AI-driven future for the continent.”

As part of its broader initiatives, Google also announced $2.25 million to support projects building trustworthy public data sets for AI by the UN Economic Commission for Africa (UNECA), the UN Department of Economic and Social Affairs (UN DESA) and PARIS21.

This contribution will help national statistical offices modernize their infrastructure and empower decision-makers with the reliable data they need to address challenges from food security to economic growth.

“For Africa to drive sustainable development, evidence-based policymaking is indispensable. This requires accessible, reliable, and AI-ready data.

“This effort is a crucial step forward. By building a Regional Data Commons, we can empower African institutions with the data and tools they need to make strategic choices that will drive growth and prosperity,” the Executive Secretary of the UN Economic Commission for Africa, Claver Gatete, said.

Finally, building on its $7.5 million Google.org Skilling Fund commitment, Google announced the first set of expert social impact organizations who will receive funding to execute on projects consistent with its skilling mission, including FATE Foundation and the African Institute for Mathematical Sciences (AIMS), which will embed advanced AI curricula into universities; and JA Africa and CyberSafe Foundation, which will advance crucial work in online safety and digital literacy.

“We are incredibly proud to partner with the African Institute of Management Sciences on the Advanced AI UpSkilling Project, with support from Google.org. This groundbreaking initiative is a direct response to the urgent need for deep AI competencies in Africa, empowering tertiary institutions, lecturers, and students in Nigeria, Ghana, Kenya, and South Africa.

“This strategic support aligns perfectly with FATE Foundation’s mission to foster innovation and sustainable economic growth across the continent, ensuring Africa is fully equipped to lead in the global technological future,” the Executive Director for FATE Foundation, Adenike Adeyemi, stated.

“We live in an age defined by rapid technological change and our mission at JA Africa is to ensure that African youth are not left behind. However, even as we engage our youth in more digital programs and encourage AI literacy, we are fully aware of the harmful effects of unchecked online exposure and, therefore, invest equally in protecting their data, physical safety and mental wellbeing.

“Through this support from Google.org, we will give young people the tools, knowledge, and confidence they need to navigate the digital world safely and responsibly,” the chief executive of Junior Achievement Africa, Simi Nwogugu, remarked.

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Zoho Updates All-in-One Business Software Platform Zoho One

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Zoho One Update

By Modupe Gbadeyanka

Global technology firm, Zoho, has enhanced its all-in-one business software platform known as Zoho One with improve security, and deeper intelligence across all over 50 applications.

The company improved the user interface, placing context at the centre of the user journey and removes traditional boundaries between applications.

Spaces now organise tools by purpose—such as Personal, Organisation, and Department-specific groups—enabling employees to access what they need without switching between apps. A centralised search bar spans the entire ecosystem, allowing users to find information or trigger workflows instantly.

An enhanced Action Panel provides a full view of upcoming meetings, unread messages, pending tasks, and other key updates, helping employees remain informed regardless of which app they are using.

The updated Dashboard consolidates data from Zoho and third-party apps into one central hub that can be customised using pre-existing or bespoke widgets.

The platform also introduced Vani, a new visual-first collaboration space that supports brainstorming, planning, and creation through diagrams, whiteboards, mind maps, and integrated video calling.

A central integrations panel enables administrators to monitor and configure all connections. Foundational integrations bring application-specific portals—Zoho or third-party—into a single unified portal. Practical tasks such as domain verification and authentication can now be configured more easily.

The new Smart Offboarding feature introduces outcome-based integrations, allowing organisations to transfer department ownership, manage employee device data, and determine data access rights within a single workflow, ensuring smooth transitions.

Also, Zia, Zoho’s AI assistant, is now accessible throughout Zoho One, providing unified intelligence that supports decision-making and improves productivity. Zia can aggregate and contextualise information from various platforms, including third-party systems such as Google Workspace, and present it as clear, actionable insight.

Zia Hubs, the platform’s intelligent content management system, now has a dedicated space where contracts, meeting recordings, and other important assets are automatically organised. Through Zia Search, employees can quickly surface relevant information without navigating multiple locations.

In addition, Ask Zia, available from the bottom toolbar, enables prompt-based searches across Zoho One, providing quick visibility into schedules, tasks, recent interactions, and other key details.

Commenting on the changes, the Country Head for Zoho Nigeria, Mr Kehinde Ogundare, said, “The Zoho One update reflects how work has evolved from using individual applications to operating within a unified platform.

“Zoho One customers are not simply licensing apps; they are choosing a solution that allows Zoho to handle the technology while they focus on productivity. The enhancements announced today deliver a cohesive experience built on unified integrations, context, and data.”

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