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Tag: MTN

  • MTN Contemplates Exit from Liberia, Guinea-Bissau, and Guinea-Conakry

    MTN Contemplates Exit from Liberia, Guinea-Bissau, and Guinea-Conakry

    MTN, the prominent African telecommunications company, is reportedly considering withdrawing from three markets on the continent, as indicated by a report from Business Insider Africa. The mobile operator, which currently operates in 19 countries across Africa and the Middle East, has initiated discussions about the potential “orderly exit” from its operations in Guinea-Bissau, Guinea-Conakry, and Liberia.

    While the specific reasons for the contemplated exit have not been disclosed, MTN’s financial reports highlight multiple challenges faced in the West and Central Africa region. CEO Ralph Mupita cited signs of inflation and currency devaluation in various markets. The company’s 2022 financial year-end report revealed a 1.7 percentage point decline in the EBITDA margin to 33.1%, attributed to pricing pressures, fintech channel subsidies, and macroeconomic challenges, including local currency devaluations and increased inflation.

    According to Bloomberg, these three countries contribute only 1.6% to MTN’s total revenue in 2022, making them relatively minor contributors. MTN holds a substantial market share in Guinea-Bissau and Guinea-Conakry, accounting for approximately 30%, while in Liberia, Lonestar MTN is the second-largest telecom provider in the country.

  • “Stock Market Begins Week on Positive Note, Registers N75bn Gains”

    “Stock Market Begins Week on Positive Note, Registers N75bn Gains”

    The domestic stock market started the week with a positive trajectory, recording a gain of N75 billion, primarily driven by investor interest in MTN Nigeria Communications (MTNN) Plc and 24 other stocks.

    This led to a rise of 0.21% in the All-Share Index, representing a significant increase of 138.63 points, culminating in a closing value of 65,336.71 points. Furthermore, the overall market capitalization saw an uptick of N75 billion, settling at N35.555 trillion.

    The positive performance was fueled by the upward movement of prices in large and medium capitalization stocks, particularly MTNN, Nigerian Enamelware, BUA Foods, GlaxoSmithKline Consumer Nigeria, and Cadbury Nigeria.

    United Capital Plc anticipates the bullish sentiment to persist in the equities market due to its appeal in contrast to the subdued rates within the fixed-income market. Additionally, the positive market sentiment tied to new policy directions and Nigeria’s improved S&P outlook from ‘negative’ to ‘stable’ is expected to sustain the ongoing market rally.

    Market breadth remained balanced with 25 gainers and 25 losers. Nigerian Enamelware achieved the highest price gain of 9.86%, closing at N19.50 per share. Wema Bank followed with a 9.77% gain, closing at N4.72, while University Press saw a rise of 9.73%, closing at N2.48 per share.

    Conversely, Omatek Ventures led the decliners with an 8.82% drop, closing at 31 kobo per share. Prestige Assurance came next with a 7.84% decline to close at 47 kobo, while McNichols recorded a 7.35% loss, closing at 63 kobo per share.

    Trading volume decreased by 7.9% to 334.33 million units, valued at N3.89 billion, executed across 6,940 deals. Sterling Financial Holdings Company dominated the activity chart with 55.141 million shares worth N197.266 million. FCMB Group followed with 28.249 million shares worth N173.844 million, and Fidelity Bank traded 18.842 million shares valued at N150.847 million.

    Japaul Gold & Ventures accounted for 17.356 million shares valued at N17.019 million, while Access Holding transacted 17.101 million shares worth N296.636 million.

  • CBN’s Forex Policy Results in MTN Recording N131.4bn Loss

    Telecommunications giant, MTN has suffered a foreign exchange loss of N131.4 billion, dragging its profits down, its 2023 second-quarter report has revealed.

    The report showed a pre-tax profit falling a whopping 64 per cent to N44.6billion. This took its half-year profits to N200.3 billion compared to N268.6 billion same period in 2022.

    The Q2 report also revealed that “MTN recorded revenue of N590.6 billion, representing over 23.3 per cent year-over-year (YoY); gross profit of N393.5 billion, representing over 22.9 per cent YoY and operating profits of N214.9 billion, representing 24.3 per cent YoY.

    “Pre-tax profits of N44.6 billion; forex losses of N131.4 billion; finance cost of N182 billion, representing over 259 per cent YoY; total debts of N855 billion, compared to N689.6 billion, recorded in December 2022; net assets of N258.2 billion, compared to N355.6 billion, recorded in December 2022 and working capital of N588.7 billion.”

    In its reaction, MTN averred that the Central Bank of Nigeria’s recent forex policy caused a significant 60 per cent movement in the exchange rate to N756.24 per dollar by the end of June 2023.

    The company believed that the liberalization of the forex system and removal of the fuel subsidy will attract foreign capital, spur foreign direct investment, and have a net positive impact on their longer-term outlook, despite the fact that the immediate impact led to unrealised currency losses for H1.

  • MTN, Airtel rake in N1.92tn from calls, data in 9 months

    MTN, Airtel rake in N1.92tn from calls, data in 9 months

    MTN and Airtel made N1.92tn from calls and data between January and September, 2022.

    This is according to data from the financial results of MTN Nigeria Communications Plc and Airtel Africa’s Nigeria subsidiary.

    This is an 18.27 per cent increase from the N1.62tn that was earned by the telcos on calls and data in the corresponding period of 2021.

    MTN Nigeria revealed that its customers spent N753.78bn and N549.66bn on calls and data respectively while Airtel Nigeria customers spent N342.71bn ($780m) and N274.61bn ($625m) on calls and data, respectively.

    In its result, MTN stated that inflation, supply chain uncertainties and foreign exchange scarcity were putting financial pressure on consumers and businesses.

    It said, “Our operating environment remained challenging in the first nine months of 2022. The ongoing global macroeconomic and geopolitical volatility continued to drive up energy, food, and general inflation, with the annual inflation rate in Nigeria rising to a 17-year high of 20.8 per cent in September 2022.

    “Supply chain uncertainties were exacerbated by the availability of foreign currency needed for capital expenditure. These headwinds continue to put severe financial pressure on consumers and businesses.”

    MTN’s result disclosed that data traffic grew by 70.6 per cent y-o-y, while Airtel revealed that data usage per customer increased to 4.8 GB per month (from 3.9 GB in the prior period).

    Commenting on the growth of voice and data revenues, MTN Nigeria Chief Executive Officer, Karl Toriola, said, “Voice revenue grew by 4.4 per cent, maintaining a steady recovery as more customers are reactivated, and gross connections continue to ramp up.”

  • MTN Launches 5G Trial In Nigeria

    MTN Launches 5G Trial In Nigeria

    MTN Nigeria on Wednesday said it had turned on the 5G spectrum in Nigeria with 20,000 subscribers.

    The telecoms giant also said potential users can pre-order a home broadband device to experience internet “downloads in seconds, not minutes.”

    “2G brought us SMS and picture messaging,” MTN CFO Modupe Kadiri said in a post. “3G was about mobile internet access. 4G made streaming and sharing a part of everyday life. 5G delivers the future and it’s here – higher internet speeds, downloads without delay, near-instant connection when streaming, using apps, loading websites, playing games, or connecting to smart home devices.

    “So today we started another phase in our journey to Brighten the lives of our esteemed subscribers. Yes today we turned on the 5G spectrum and kicked off our 5G pilot. 20,000 customers with enabled devices can now try out our next-generation network where coverage is available. So seeing 5G on your phone? It means you’re part of the pilot. Welcome to the wonder of 5G!”

  • MTN’s Public Offer Oversubscribed by 139.47%

    The Series 1 offer for sale of 575 million shares held by the MTN Group in MTN Nigeria (the Offer) to Nigerian investors, which held last December, has been successfully completed and was oversubscribed by 139.47 per cent, which is an additional 82.25 million MTN Nigeria shares.
    The oversubscription raised the initial number of shares sold from 575 million to a total of 661.25 million shares.

    The Offer was implemented by way of a bookbuild to qualified institutional investors and a fixed price offer of N169.00 per share to retail investors.
    A breakdown of the sale shows that approximately 76 per cent of successful applicants via digital platform were women, thus making women to lead digitally, while 85 per cent of the sale were from under age 40.
    Following the successful completion of the Offer, MTN Group’s shareholding in MTN Nigeria reduced by 3.25 percentage points, from 78.83 per cent to 75.58 per cent.

    According to a statement released Tuesday by MTN Nigeria and signed by the Company’s Secretary, Uto Ukpanah, the offer was oversubscribed with valid applications for a total of 801.97 million units, leading to the activation of the approved 15 per cent over-subscription clause of an additional 86.25 million MTN Nigeria shares. In all, 661.25 million MTN Nigeria shares were allotted. A total of 126,720 retail investors submitted valid applications and received full allotment. Institutional investors including pension funds, insurance companies, asset managers, corporates, and foreign portfolio investors that participated in the bookbuild were allotted 72.09 per cent of their applications. This includes Nigerian pension funds representing approximately 6.5 million Nigerian contributors.
    In line with the innovative incentive structure of 1 free share for every 20 purchased, subject to a maximum of 250 free shares per investor, an additional 4.28 million MTN Nigeria shares will be allotted to qualifying investors who hold the shares allotted to them for 12 months till 31 January 2023.

    According to the statement, MTN Group adopted a unique structure in the offering by determining a fixed price of N169 per share for the retail offer through a Bookbuild to Qualified Investors that was completed on 26 November 2021. The fixed price offer to Retail Investors was at a discount of 11 per cent to the closing price of MTN Nigeria stock on the day the Bookbuild was completed. The Offer commenced on 1 December 2021 and was completed on 14 December 2021. Nigerian investors across the country supported the Offer through multiple channels – Receiving Agents, Issuing Houses and Primary Offer (a digital application platform).”
    The CEO of MTN Group, Ralph Mupita, said: “We are pleased that this Offer has given so many Nigerians the opportunity to become owners of MTN Nigeria. With over 6.6 million Nigerians directly or indirectly becoming shareholders in MTN Nigeria, the objective of broadening the shareholder base, and creating shared value has been achieved. We are proud that our Offer was the first Nigerian public offer to use the digital application platform, Primary Offer, which enabled wider investor participation across Nigeria. We thank the Nigerian authorities for their support of this Offer. We remain committed to playing our humble role in driving digital and financial inclusion in Nigeria over the medium.”

    Commenting on the Offer, the CEO of MTN Nigeria, Karl Toriola, said: “We are delighted to welcome so many new shareholders to the MTN family, up 11.6 times from the number before the offer. It has been inspiring to see so many Nigerians, many of whom are young, acquire shares for the first time, and use a digital platform to do so. This is the beginning of a journey to broaden our shareholding and there will be more opportunities to participate.
    “We are pleased with the level of digital innovation we championed with this offer with the active collaboration of our lead issuing house and the various regulatory bodies. Deepening retail participation in Nigeria’s capital markets is a process, and we are off to a great start, demonstrating the role digital platforms can play in expanding access. I am particularly pleased that we completed this transaction in an accelerated time frame ensuring new shareholders can realize value almost immediately through participation in our 2021 full-year dividend.”

  • NCC Qualifies Three Telecoms For 5G Auction

    NCC Qualifies Three Telecoms For 5G Auction

    The Nigerian Communications Commission has announced that three telecommunications firms have qualified for its 5G auction.

    This was announced in a statement released on Thursday by the commission.

    The companies include MTN Nigeria Plc, Airtel Networks Limited, and a new firm, Mafab Communications Limited.

    The three qualified bidders met NCC’s criteria for the licensing process for the 3.5 gigahertz spectrum which is required for 5G deployment.

    According to the commission, the stage is now set for the three companies to participate in the Main Auction as well as in the mandatory Mock Auction process, which will come as a precursor to the Main Auction.

    See full statement of the NCC below…

    Consistent with its regulatory principle of open and transparent auction, the Nigerian Communications Commission (NCC) has announced that three telecoms companies have qualitied as approved bidders of the forthcoming 3.5 gigahertz (Ghz) spectrum auction for the deployment of Fifth generation (5G) networks in the country.

    The qualified bidders that have met the criteria for participation in the licensing process of 3.5Ghz spectrum, including payment of the stipulated Intention to Bid Deposit (IBD) as outlined in the Information Memorandum (IM), are MTN Nigeria Plc., Mafab Communications Limited and Airtel Networks Limited.

    Consequently, the stage is now set for the three companies to participate in the Main Auction as well as in the mandatory Mock Auction process, which will come as a precursor to the Main Auction.

    The Commission has also reaffirmed the dates for the conduct of both the Mock Auction and the Main Auction. The Mock Auction is scheduled to hold on Friday, December 10, 2021 at Transcorp Hilton Hotel, Abuja by 11:00 a.m., while the Main Auction will hold on Monday, December 13, 2021 at the same venue and same time.

    Signed:

    Dr. Ikechukwu Adinde

    Director, Public Affairs

    December 2, 2021

  • MTN, Airtel Get CBN’s Approval in Principle to Operate Payment Service Banks

    MTN, Airtel Get CBN’s Approval in Principle to Operate Payment Service Banks

    The Central Bank of Nigeria (CBN) has granted approval in principle to MTN and Airtel to operate payment service bank (PSB) across the country, aimed at further driving financial inclusion in Nigeria.

    CBN had since communicated the approval to both telecoms operators.

    Announcing the approval, MTN in a statement Friday, signed by the Company’s Secretary, Uto Ukpanah, said: “MTN Nigeria Communications Plc (MTN Nigeria) as promoter, received an Approval in Principle (AIP) dated 4 November 2021 from the Central Bank of Nigeria (CBN) for a licence application for the proposed MoMo Payment Service Bank Limited. This is the first step in the process towards a finial approval, subject to he fulfilment of certain conditions as stipulated by the CBN.

    The decision to issue a final approval is firmly within the regulatory purview of the CBN and we respect their right and judgment in that regard.”

    MTN Nigeria therefore affirmed its commitment towards the financial inclusion agenda of the CBN and the federal republic of Nigeria to continue to explore means whereby it can contribute to its fulfilment.

    Airtel, which also announced the approval CBN granted it to operate PSB, through a statement signed by the Group Company Secretary, Simon O’Hara, said: “Airtel Africa, with presence in 14 countries across Africa, announces that its subsidiary SmartCash Payment Services Bank Limited has been granted approval in principle to operate a payment service bank business in Nigeria. Final approval is subject to the Group satisfying certain standard conditions within six months.”

    Commenting on the approval, the CEO, Airtel Africa, Segun Ogunsanya, said: “I am very pleased that Smartcash has been granted an approval in principle to operate a service bank business in Nigeria. We will now work closely with the Central Bank to meet all its conditions to receive the operating licence and commence operations.

    The final operating licence will enable us to expand our digital financial products and reach the millions of Nigerians that do not have access to traditional financial services.

    I am looking forward to working closely with the government, the Central Bank and traditional financial institutions to expand financial inclusion and meet the evolving needs of our customers and the economy.”

  • MTN compensates customers with airtime, data over October 9 network outage

    MTN compensates customers with airtime, data over October 9 network outage

    MTN Nigeria has compensated its subscribers with airtime and data due to the outage its consumers witnessed last Saturday. The Chief Executive Officer, MTN Nigeria, Karl Toriola, shared the information with subscribers on Sunday.

    Toriola, via a video message posted on the company’s YouTube channel with its link sent to all subscribers of the network, apologised for the error.

    In his message, Toriola said, “Last Saturday we had an outage that left our customers without connection for several hours. On behalf of the entire MTN team, I want to start with a heartfelt apology. We are truly sorry for the disruption this caused for so many in our MTN family.

    “We know that millions of people rely on us to stay connected to their loved ones, to manage their businesses, to coordinate their lives. We take that responsibility and privilege, very seriously. That is why we are putting new measures in place to make sure we never experience anything like last Saturday again.”

    He further explained the cause of the outage, saying, “Our technical teams have placed the cause of the problem to an error that shifted all over 4G customers to the 3G band. This overloaded the 3G band, causing a domino effect that impacted the whole network. Our engineers were able to resolve the problem.

    “I know that recently, other technology companies suffered similar outages; I want to reassure you that last Saturday’s event is in no way connected to those outages. This incident was not sabotaged but a regrettable error.”

    To compensate subscribers of the network, Toriola stated that the telecommunication company will refund its customers the airtime and data they purchased.

    “While we work to strengthen our network to prevent any further disruption of this kind, we wanted to find a way to say sorry to you. Something more than extending the validity of all time-bound plans by 24-hours which we did as soon as service was restored.

    “So, while we cannot give you back the time you lost on Saturday, we can give you back what you spent yesterday. Every customer on the MTN network has received a refund of the data and airtime they used between 12 noon and 7:00 pm yesterday. We hope that this should show how much we value you, our customer. You are truly our most important focus.

    “We all have challenges — each and every one of us; personally or professionally. What matters is how we respond. With you by our side, we will continue to improve and grow,” he said.

  • Telecom Companies Block Twitter Access In Nigeria

    Telecom Companies Block Twitter Access In Nigeria

    Telecommunications companies including MTN, Airtel, Glo and 9Mobile have blocked access to Twitter in compliance with the Federal Government directives.

    Many Twitter users woke up on Saturday to the inability to access the microblogging website.

    On Friday, Alhaji Lai Mohammed, Minister of Information, had announced the suspension of Twitter operations.

    The announcement came after the platform yanked off a tweet of President Muhammadu Buhari on civil war.

    In a statement on Saturday, the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said they had started blocking access to Twitter.

    “We, The Association of Licensed Telecommunication Operators of Nigeria wish to confirm that our members have received formal instructions from the Nigerian Communications Commission, the industry regulator to suspend access to Twitter.”

    “ALTON has conducted a robust assessment of the directive in accordance with internationally accepted principles.

    “Based on national interest provisions in the Nigerian Communications Act, 2003, and within the licence terms under which the industry operates; our members have acted in compliance with the directives of the Nigerian Communications Commission, the industry regulator.

    “We will continue to engage all the relevant authorities and stakeholders and will act as may be further directed by the NCC. We remain committed to supporting the government of the Federal Republic of Nigeria and upholding the rights of citizens.

    “As an industry, we endorse the position of the United Nations that the rights held by people offline must also be protected online. This includes respecting and protecting the rights of all people to communicate, to share information freely and responsibly, and to enjoy privacy and security regarding their data and their use of digital communications,” read the statement jointly signed by ALTON Chairman, Gbenga Adebayo; and ALTON Executive Secretary, Gbolahan Awonuga.

    Many Nigerians have opted for Virtual Private Networks (VPNs) to circumvent the suspension of Twitter.