MTN Reports Growth Despite Pandemic
Mobile operator MTN released a financial and statistical report on Wednesday for the year ended December 2020. According to the report, MTN has received a growth of 19.9%, characterised by an increase of 28.8 million subscribers to a whopping 279.6 million in totality. The operator has reported a boost of 14.6% in MTN Nigeria, 1.6% in MTN SA and 16.6% in MTN Ghana. The earning per share increase has been reported to be sitting at 60%.
MTN said its near-term focus is the reduced net debt from just above US$3.5 billion (R55 billion) to US$2.8 billion (R43 billion). Ralph Mupita, the Chief Executive Officer, said the board is currently working on a revised medium-term dividend policy to be announced in March 2022 during the 2021 financial year feedback. MTN has projected that payment of 260cents per share in the 2021 financial year will be released towards ordinary dividends. Other costs will be in the form of special dividends and share repurchases.
The expansion of MTN’s 3G coverage yielded an increase of 16.3million people, while 4G increased by 55 million people. The 5G investment, currently in SA, recorded 140 million smartphones on the MTN network. A data revenue increase of 31% brought by the 110% increase in traffic was brought by the higher online demands, which are learning and working from home due to Covid.
“While Covid-19 accelerated the adoption of mobile financial services, growth in fintech revenue was moderated by reductions in transaction fees to support our customers, lockdown restrictions on agents and a slowdown in economic activity,” the Chief Executive said.