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MTN Group Records Commercial Momentum in Financial Report

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MTN Group on Wednesday announced an encouraging set of results for the year ended 31 December 2019.

MTN Group Records Commercial Momentum in Financial Report

 

The group also announced the stepping down of  Rob Shuter, group president and CEO at the end of his contract in March 2021.

Commenting on the results, Shuter said: “In 2019, the 25th anniversary of MTN Group, we delivered commercial momentum across our operations as well as great progress in our strategy and strong financial results, despite challenging trading conditions.

“We added 18 million customers to reach a total of 251 million and increased our data users by 17 million to 95 million and our fintech customers by 7 million to 35 million.

“This growth is central to our belief that everyone deserves the benefits of a modern connected life.

“We also saw improvements in customer experience, network quality and market share across the group.

“On the strategic front, we launched our instant messaging platform Ayoba, which is now live in 12 markets with two million monthly active users.

“We launched MoMo in South Africa and Afghanistan and received our super-agent licence in Nigeria, registering more than 100 000 agents by year-end.

“We also delivered R14 billion of asset realisations within the first 12 months of our programme and MTN Nigeria listed on the Nigeria Stock Exchange.

“We recorded progress on various regulatory issues, including the AGF tax matter in Nigeria. Relationships with stakeholders across our markets improved, and we reported our highest employee sustainable engagement score yet.

“On the financial side, we delivered service revenue growth of 9,8% with an acceleration in the second half.

“Our EBITDA margin improved and reported headline earnings per share grew by 62%. Our network rollout brought a further 69 million people into 4G coverage whilst reducing capex intensity. Improved cash flows during the year supported stable balance sheet ratios.”

Operating environment, the group said that this outcome was delivered against challenging macroeconomic conditions, particularly in South Africa, with muted economic activity and the rand weakening against the US dollar.

Financial performance

In constant currency terms, group service revenue increased by 9,8%* to R141,8 billion and earnings before interest, tax, depreciation and amortisation (EBITDA) expanded by 13,6% to R53,4 billion. The holding company leverage ratio improved to 2,2x, which is well within the group’s guidance range of 2,0 to 2,5x, and we reduced our capex intensity to 17,5% from 19,3%, indicating greater efficiency in deploying assets. Driven by the strong earnings performance, operating cashflow increased by 18% and the ROE increased from 11,5% in 2018 to 14,3% in 2019 on an IAS17 basis.

The group’s results were supported by double-digit growth in service revenue by both MTN Nigeria and MTN Ghana. The performance of MTN South Africa was impacted by economic pressure, new data usage rules and changes in recognition criteria for roaming revenue from Cell C due to delayed payments under the networking roaming agreement.

Management succession

MTN announced that the group president and CEO Rob Shuter will be stepping down from his role at the end of his contract in March 2021. The board thanks Rob for the contribution he has made, and continues to make, to MTN. The succession process will be concluded during the year, enabling a seamless handover.

MTN group chief technology and IT officer Charles Molapisi has been appointed to the group executive committee and the fixed contract of the group chief operations officer, Jens Schulte-Bockum, has been extended until 31 March 2022.

Looking ahead, Shuter said: “We are well positioned for growth. Guided by our well-defined BRIGHT strategy, we are building our growth strategy on our digital operator model while optimising efficiencies, capex and cashflow.

“Following data price reductions in South Africa and Nigeria in 2019, we expect price elasticity to improve data revenue growth in 2020, supported by expanded 4G coverage in Nigeria and across the group.

“We will continue to scale up our fintech and digital services as well as grow our enterprise and wholesale businesses.

“We have maintained our service revenue, EBITDA margin, capex intensity and ROE targets and increased our asset disposal target by a further R25 billion over the medium term. We also now target a holding company leverage ratio at below 2x.

“We will use 2020 to implement our succession process and ensure a seamless handover to the new group president and CEO whilst maintaining our operational execution.

“Inspired to harness the pioneering spirit that has built MTN over the last 25 years, we remain committed to delivering on our strategy in a more agile way in close collaboration with our many partners, with whom we are #GoodTogether.”

 


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University.

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FCT Lifts Suspension Order on Masts, Towers

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Federal Capital Territory Administration (FCTA) has finally lifted the suspension order it earlier placed on telecoms masts and towers in Abuja metropolis.

FCT Lifts Suspension Order on Masts, Towers

The FCTA has therefore asked telecoms operators to commence fresh moves to regularise, update and settle all outstanding bills on their masts and towers to enable them resume installation of masts and towers in the territory.

Relieved of the burden of the suspension of telecoms masts installation in Abuja, Mr. Gbenga Adebayo, chairman of the Association of Licenced Telecoms Operators of Nigeria (ALTON), said that the suspension order would enable telecoms operators resume telecoms masts and other telecoms infrastructure rollout in Abuja, a situation, he said would address the issue of poor telecoms services in Abuja and its environ, having suffered from poor telecoms service delivery in the territory since the suspension order in February this year.

The FCT Administration had on February 3, 2020, placed a suspension order for the installation of telecoms masts and towers in the federal capital territory and communicated same to all telecoms operators through a letter.

In a recent letter dated September 25, 2020, written to all telecoms operators through their association, ALTON, the FCT Administration lifted the suspension order and asked telecoms operators to commence masts installation after seeking the necessary approvals.

Part of the letter with reference No: FCDA/ES/460/Vol.1, which was signed by the Permanent Secretary, Federal Capital Territory Administration, Olusade Adesola, read: “I wish to refer to our letter dated February 3, 2020, which conveyed the suspension of the grant of permits for the erection of telecoms masts/towers in the FCT and the series of correspondences by you dated April 30, July 14, and September 8, 2020, wherein you appealed for reconsideration of the directive to facilitate prompt resumption of the issuance of the build permit process.

“After carefully studying your concerns, the FCT Administration is delighted to convey the lifting of the suspension of the processing/grant of permits for telecoms masts and towers in the FCT, with effect from the date of this letter.”

Reacting to the letter, Adebayo said: “For some time now, telecoms operators in Abuja have not been able to provide adequate capacity to carry the load of Abuja subscribers because of the non-approval of the expansion of telecoms masts and towers by the FCT Administration.

The implication is that those who travelled into Abuja from other states and from other countries were not able to have uninterrupted telecoms services, which was a reputation issue for the country, because travelers will leave the country with the impression that telecoms services are poor in the country. But with the lifting of the suspension order, telecoms operators will be able to install more masts that will lead to better user experience of telecoms services in Abuja. The government agencies will also have better user experience and service delivery.”

“We are happy with the lifting of the suspension order for the telecoms masts and towers in Abuja, and we are glad that the Minister of Communications and Digital Economy, Dr. Isa Ibrahim Pantami, was able to resolve this for us. So we are ready to expand telecoms infrastructure in the FCT.”


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FG Launches Digital Nigeria Portal, Mobile App

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Dr Isa Pantami, minister of Communications and Digital Economy (FMCDE) has unwrapped a Digital Nigeria Portal and Mobile Application in furtherance of the Digital Nigeria Programme.

FG Launches Digital Nigeria Portal, Mobile App

Dr Isa Ibrahim Pantami

The Digital Nigeria Programme was kick-started by President Muhammadu Buhari, on March 19, 2020.

At the virtual launch of the mobile application in Abuja, Pantami, said it was part of the government’s key initiatives aimed at empowering innovators and entrepreneurs with the requisite skills to thrive in an emerging digital economy.

He explained that the Digital Nigeria programme was a key component of the Digital Literacy and Skills Pillar of the National Digital Economy Policy and Strategy (NDEPS) for a Digital Nigeria which was being championed by himself.

Pantami said the ministry was partnering with global institutions including the African Development Bank (AFDB) and Microsoft to enable Nigerians to acquire cutting edge digital skills within the comfort of their homes.

The Minister, however, reiterated the government’s resolve to promote skills over paper qualifications.

“We are championing a paradigm shift that lays emphasis on skills, in preference to merely having degrees without skills.

“Degrees are only meant to validate skills, this is a growing trend across the globe.

“The digital literacy and skills pillar recognises the fact that citizens are the greatest assets in any economy, including the digital economy.

“It will support the development of a large pool of digitally literate and digitally skilled citizens. The “Digital Nigeria” mobile app is available on play store and apple store, enabling Nigerians to enrol in ICT courses within the comfort of their homes,” he said.

Pantami said that much of the content was provided through AfDB’s partnership with Microsoft, adding that students can download certificates after completing the courses.

According to him, across the globe, there is a growing focus on the need for developing skills, rather than merely acquiring degrees.

“To this end, Nigerians are encouraged to take advantage of this opportunity by enroling today at https://digitalnigeria.gov.ng; or https://academy.nitda.gov.ng/ accordingly.

“The portals will give details on how to register and how to download the relevant Mobile Apps.

“The Ministry of Communications and Digital Economy is committed to developing the capacity of Nigerians to use technology to solve problems.

“We will keep updating the course offerings to reflect global trends. The Digital Nigeria Programme will provide a platform to empower Nigerians to develop relevant skills and build innovative solutions to address challenges within,” Pantami said.

Some of those present at the launch included Prof. Umar Danbatta, executive vice chairman of the Nigerian Communications Commission (NCC), and Prof. Mohammed Abubakar, managing director of the Galaxy Backbone (GBB).


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Digital Explorers Launch Paid Traineeship in Lithuania for Nigerian Female Data Analysts

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Digital Explorers has launched applications for the second cohort of the program. This time, it is a female-only track that will select up to 15 female Data Analysts and Data Scientists at entry-level who will undergo up to 6 months paid traineeship in Lithuania. The program will consist of an intensive training and a placement at a Lithuanian company.

Digital Explorers launched in 2019, selecting 15 Nigerian ICT specialists, from a pool of 1,400 young talents. The first cohort of 15 digital explorers have spent a year in Lithuania, working, learning, and networking. They are now wrapping up their 1 – year career advancement journey and transitioning to full-time, more permanent employment.

For the next cohort, Digital Explorers is partnering with Data Science Nigeria to identify and select Data Analysts/Scientists for its 2020 Virtual Bootcamp (to commence on 20th October, 2020).

The objective of this cohort is to support women in tech and contribute to closing the global tech gender gap by offering tailored data analysis / data science traineeships to selected participants.

Interested Nigerian entry-level female data analysts/scientists are required to register for the DSN Hackathon through this link – bit.ly/AIBootcamp20_hack in order to make it into the Virtual Bootcamp.

This also gives an opportunity for Nigerian Companies with existing female entry level data scientists and analysts to encourage their staff to apply.

Participants will receive tailored training, international exposure and return after 6 months better equipped to contribute to the success of the organization. Application for the DSN Hackathon closes on October 3rd, 2020.

The training participants will receive will be tailored to meet market demands in Lithuania and Nigeria. At the end of the programme, participants will be further assisted in finding the right employment opportunities in Nigeria.

Nigerian companies interested in hiring data analysts and data scientists in the future can partner by registering here to recruit participants who successfully complete the programme on their return from Nigeria.

In his vision essay about this program, Kola Aina – Founder of Ventures Platform says this project is “about upskilling the next generation of Nigerian entrepreneurs and knowledge workers with global networks and connections.

“Our ‘Digital Explorers’ will be working side by side with amazing people on world class teams, building products and services for global clients, and spending a lot of time in structured learning and networking activities… Looked at from a certain perspective, the people who make it into the Digital Explorers programme are effectively being paid to learn and acquire world class skills.”

Speaking on the launch of the second track of the Digital Explorers program, Eugenija Kovaliova, Co-founder of AfriKo says, “Lithuanian ICT sector has been maturing significantly over the past decades and this has been recognized by many international tech companies, hiring Lithuanian specialists to work on complex projects.

“At Digital Explorers we want to open up an opportunity for Nigerian talents to work alongside Lithuania’s best and bring back acquired skills and knowledge for a stronger Nigerian digital landscape.”

Mimshach Obioha, the Executive Director at Ventures Platform Foundation, added, “The choice to focus on Data Analysts and Data Scientists is fueled by the growing global demand across different industries for jobs such as Artificial Intelligence and Machine Learning Specialists or Data Scientists.”


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