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MTNN 9-month profit falls by 3.3% to N144bn

MTNN 9-month profit falls by 3.3% to N144bn

The profit of MTN Nigeria for the 9 month period to September 2020 declined by 3.3% to N144.239 billion compared to the same period of 2019, its unaudited financial report posted on the Nigerian Stock Exchange (NSE) showed on Wednesday.

MTNN, which became Nigeria’s biggest company by market value recently after displacing Dangote Cement, said its operations were adversely impacted by devaluation of the naira, adding that the unavailability of foreign exchange remained a big issue and declared plans to scale back exposure to foreign currency.

It earned N654.52 billion in voice revenue, which comprised interconnect and roaming voice, signalling a 4.2% growth over the figure reported in the relative period of last year.

Data revenue also expanded by 57% to N241.6 billion but SMS revenue dived by 19% to N8.3 million.

Read also: MTNN half-year revenue rises, helped by data income, but soaring costs hurt profit

Digital revenue including bulk SMS and USSD services came to N6.68 billion, representing a modest increase of 0.27% year on year.

MTNN noted that much as there were no significant operating losses or deterioration asset value, there was a huge impact of fore deterioration on the business on account of hike in NAFEX rate from N365 to about N387 to a dollar.

There are plans to re-dominate some categories of foreign-denominated costs to local currency in an effort to pare down exposure to exchange rate volatility, it said

MTNN declared it had swiftly adapted its operations to accommodate the current challenges and market situation caused by the coronavirus pandemic.

Ferdi Moolman, MTNN’s CEO said the volatility in both voice and data revenue impacted the trajectory of the overall service revenue.

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