Nigeria: MTN's Subscriber Numbers Decline By 5 Million in Q1 of 2021
MTN Nigeria has released its unaudited results for quarter one of 2021. The result indicates that its mobile subscribers have declined by 5 million to 71.5 million, which has been attributed to the regulatory sim card sale restrictions.
According to the results, the mobile operator's active data users also decreased by 71 000 to 32.2 million users. Although the company was hit with a decrease in subscribers, its service revenue increased by 17.2% to N385.2 billion (over US$ 1 billion). Earnings Before Interest Tax, Depreciation, and Amortisation (EBITDA) increased by 19.1% to N204.5 billion (US$5.38 million).
Although there was a decline of subscribers due to the new regulatory sim card sale restrictions, MTN continued to collaborate with the Nigerian Communications Commission (NCC) and the Nigerian Identity Management Commission (NIMC) to update subscriber records with the National Identity Number (NIN), said MTN.
Karl Toriola, MTN Nigeria CEO, said the telecom company had made good progress in the first quarter despite the continued impact of the COVID19 pandemic. Toriola highlighted that MTN's ability to drive service revenue growth while managing growth expenses has increased EBITDA growth to 19.1%. This has enabled profits before tax (PBT) to rise to 33.9% and profit after tax (PAT) increase by 42.5%.
The general business outlook, Toriola said, is to prioritise sustainable revenue growth whilst driving 4G network expansion and positioning the telecoms fintech business in order to unlock its full potential. MTN will continue to pursue stronger stakeholder relationships to align the organisation's priorities to drive sound governance, and economic value for all in Nigeria, said Toriola.