Telecom
MTN Investment in Nigeria Hits N2trn
MTN Nigeria Communications Plc has invested more than N2 trillion in its business operations over the past 18 years.
The market value of MTN Nigeria closed at the weekend at N2.585 trillion.
MTN Nigeria, in a regulatory filing at the Nigerian Stock Exchange (NSE) at the weekend, indicated that it has invested more than N2 trillion since incorporation in 2001.
MTN Nigeria reiterated its commitments to the Nigerian economy, noting that it had paid more than N1.7 trillion in taxes, levies and other regulatory fees in its nearly two decades of existence.
The market value of MTN Nigeria dropped by 1.59 per cent to close weekend at N2.585 trillion.
The share price decline came on the heels of what the telecommunications company described as “technical disagreement” with the Federal Inland Revenue Service (FIRS) over the tax treatment of the N330 billion fine imposed on the company for failing to deactivate more than five million unregistered SIM cards. MTN Nigeria had completed the payment of the N330 billion fine in May 2019 but the tax treatment remains a subject of judicial review at the Tax Tribunal.
MTN Nigeria believes the N330b fine should be treated as part of operating cost and not subjected to any other tax but FIRS holds that the fine should be subjected to tax.
MTN Nigeria has remained Nigeria’s second largest quoted company since listing on the NSE in May 2019. MTN Nigeria last month earmarked N60 billion as interim cash dividend to shareholders as it released its first earnings report as a quoted company.
The board of the telco indicated shareholders will receive a dividend per share of N2.95 for the first half ended June 30, 2019. This however represented a drop of 17.83 per cent from N3.59 per share paid for the first half of 2018.
Key extracts of the six-month report for the period ended June 30, 2019 showed that MTN Nigeria’s profit before tax rose by 30.9 per cent to N141.8 billion in first half 2019 as against N108.35 billion recorded in comparable period of 2018. Profit after tax grew by 34.8 per cent from N73.4 billion to N98.93 billion.
Total turnover grew by 12.12 per cent to N566.95 billion as against N505.67 billion. Operating profit had risen by 39.49 per cent from N136.50 billion to N190.4 billion. Earnings per share rose by 34.8 per cent to N4.86 compared with N3.61.
The report showed that the telco’s mobile subscribers increased by 3.3 million within the first six months of this year to 61.5 million while service revenue increased by 12.2 per cent. Voice revenue increased by 11.4 per cent, data revenue rose by 31.7 per cent while fintech revenue increased by 21.2 per cent.
However, digital revenue dropped by 64.5 per cent. The company’s earnings before interest, tax depreciation and amortization (EBITDA) rose by 40 per cent to N304.9 billion while EBITDA margin improved by 10.7 percentage points to 53.8 per cent.
Nigeria is MTN’s largest market, accounting for one-third of the South African Group’s business. The telco last week announced that the Central Bank of Nigeria (CBN) has granted its subsidiary, Yello Digital Financial Services Limited (YDFS), full Super Agent Licence. The licence will enable MTN Nigeria to convert its existing airtime agents and recruit other small businesses to distribute financial services.
The telco stated that the Super Agent Licence will enable it to pursue its fintech strategy, as part of efforts to deepen financial inclusion in Nigeria.
Ferdi Moolman, chief executive officer, MTN Nigeria Communications Plc, described the first half performance as a solid performance as the company continued to invest to improve network quality and expand 4G coverage.
He noted that recent work on revamping data prices and accelerating 4G network has put the company in a strong competitive position to offer more value to customers and provide new impetus for overall corporate growth.
He said the listing of the company on the Nigerian Stock Exchange (NSE) in May 2019 demonstrated the company’s commitment to the Nigerian market while providing opportunity to domestic investors to participate in and benefit from the company’s growth.
“Our overriding priority for the rest of the year is to focus on our BRIGHT strategy to build a sustainable business and create value for customers. We will continue to progress in the second half of the year making improvements to our network experience, subscriber growth and enhance operational efficiency. We expect lower data pricing and our acceleration of the 4G network expansion to bolster the acquisition of customers and data traffic volumes in the second half,” Moolman said.
Telecom
NCC Advises Subscribers to Opt for Strong Passwords to Beat Hackers
Nigerian Communications Commission (NCC), has advised telecommunications subscribers to opt for strong passwords to prevent unauthorized access to their mobile devices.
In a recent update on its official Facebook page, the NCC focused on how cyber-attacks could be prevented, emphasizing the importance of creating strong passwords to safeguard online accounts
The Commission urged subscribers to ensure that they have a password to log in securely.
The NCC wrote on its official Facebook page, “Protect your online accounts (such as banks and digital media) by using strong and complex passwords.”
It believes that by opting for strong passwords, individuals could defend themselves against cyber attacks.
Telecom
Starlink Users in SA to be Cut Off April 30
Starlink users in South Africa are facing a major setback as the satellite internet service provider has issued a warning that their services will be terminated by the end of the month.
In an email sent to many South African users, Starlink stated that their internet access will cease on April 30 due to violation of its terms and conditions.
The email emphasized that using Starlink kits outside of designated areas, as indicated on the Starlink Availability Map, is against their terms. Consequently, users will only be able to access their Starlink account for updates after the termination.
Starlink, a company owned by Elon Musk’s SpaceX, operates a fleet of low earth orbit satellites that offer high-speed internet globally. Despite its potential to revolutionize connectivity, Starlink has been unable to obtain a license to operate in South Africa from the Independent Communications Authority of South Africa (Icasa).
Independent Communications Authority of South Africa (ICASA) requirements mandate that any applicant must have 30% ownership from historically disadvantaged groups to be considered for a license.
However, many in South Africa resorted to creative methods to access Starlink services, including purchasing roaming packages from countries where Starlink is licensed.
However, ICASA. clarified in a government gazette last November that using Starlink in this manner is illegal.
Additionally, Starlink itself stated in the recent email to users that the ‘Mobile – Regional’ plans are meant for temporary travel and transit, not permanent use in a location. Continuous use of these plans outside the country where service was ordered will result in service restriction.
Starlink advised those interested in making its services available in their region to contact local authorities.
Telecom
9mobile Clinches 2 Trophies at the Prestigious SABRE Awards 2024
Organizers of the SABRE awards have adjudged 9mobile winner in two distinct categories – The SABRE Award for Superior Achievement in Reputation Management and Special Event/Sponsorship based on the telco’s innovative and transformative campaign titled The Hack, Expand Your Hustle.
The SABRE Awards, organized by PRovoke Media, is the world’s most prestigious Public Relations awards programme dedicated to benchmarking the best PR works across the globe.
It recognizes exceptional campaigns, by brands, and agencies that exhibit the highest levels of strategic planning, creativity, integrity, effectiveness, and business results across Europe, North America, Asia and Africa.
9mobile carted home these awards based on its recognition of the importance of SMEs in driving the economic growth of Nigeria, thus positioning itself as an SME-friendly company to support their development and success to thrive and scale their businesses.
This drive to see SMEs succeed led the telco to launch a novel entrepreneurship programme – The Hack, an Enterprise Business Growth Series designed to empower entrepreneurs by giving them the knowledge, technology, and access to the market required to help them grow, with imprints in various Nigerian cities and university campuses.
With the Hack, 9mobile showed the endless opportunities in the SME sector while addressing challenges that business owners confront, assisting them in expanding their enterprises and overcoming obstacles, taking them through the hacks the SMEs need for business growth.
Expressing her delight at this global recognition, Saidat Lawal Mohammed, Director, Marketing Communications said: “It gives us great joy to see our work recognized by such a prestigious and globally respected organization such as PRovoke Media, organizers of the SABRE Awards.
“We know that this is a highly sought-after award and based on other projects we beat to clinch these awards, we are super delighted to be recognized on a global stage. What is key for us are the results we achieved and the impact we made which has served as an elevation for this recognition”, she said.
She went on to thank the management of 9mobile for their support of the Hack initiative, and the marketing communications team for the synergy in driving the campaign.
Lawal Mohammed affirmed that through this project, 9mobile burnished its reputation as Nigeria’s SME friendly telecommunications company, adding that “in the end we reached over 23.7 million people online, had over 20,000 knowledge participants, 382 entrepreneurs exhibit and over N10 million in Grants to budding entrepreneurs. The journey of the Hack has been fun and equally impactful”.
The SABRE Awards for Superior Achievement in Reputation Management recognizes public relations work that has played a central role in corporate strategy, positioning and messaging.
In its submissions 9mobile demonstrated that its PR professionals took a lead role in creating and developing a corporate reputation platform and explain how that platform shifted perceptions, built stronger stakeholders’ relationships, and ultimately contributed to corporate performance.
The Special Event/Sponsorship category recognizes the creative spark and execution by brands and agencies in how to bring to life their ideas and strategy and propel their campaigns into the target audience consciousness, raising brand exposure and providing a competitive advantage.
9mobile had previously won Certificates of Excellence under the Corporate Social Responsibility category for its Health Talk Series and Health Workers Appreciation as well as Future CEO Initiative under the Technology category.
The 2024 Awards for Superior Achievement in Branding Reputation and Engagement (SABRE) will be held on May 16 in Abidjan, Cote D’Ivoire, on the sidelines of the annual Conference of the African Public Relations Association (APRA).
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