Telecom
MTN Nigeria Records N790.3b Increase in Service Revenue in Half –Year Ended 30 June 2021
MTN Nigeria Communications Plc has released its unaudited results for the half-year ended 30 June 2021, as well as plans to celebrate its 20th anniversary with numerous national impact projects.
Commenting on the results, Karl Toriola, ceo, MTN Nigeria, said: “In the first half of 2021, we made good progress strengthening the resilience of the business, managing the impact of the COVID-19 pandemic and enhancing support to our people, customers and other stakeholders.
“We extended our commitment to the Coalition Against Covid-19 (CACOVID) with an additional N3 billion contribution over a two-year period, half of which has already been paid.
“This is in support of efforts to promote the health and security of Nigerians, as we navigate our way through the pandemic; and in line with our Y’ello Hope initiatives through which we provided support to our broad base of stakeholders to the value of approximately N25 billion in 2020.
“Our progress towards achieving greater business resilience is reflected in the upgrade by Global Credit Ratings (GCR) of our national scale long-term issuer rating to AAA and affirmation of our national scale short-term rating of A1+ with a stable outlook.
“This puts MTN Nigeria on the highest possible GCR scale for short-term andlong-term ratings, providing asolid platform for growth.
2021 marks the 20th anniversary of MTN’s presence in Nigeria. As we celebrate this milestone, we are pleased to announce that our Board of Directors has approved our participation in the Road Infrastructure Tax Credit (RITC) Scheme.
“This is in response to Government’s drive towards public-private partnerships in the rehabilitation of critical road infrastructure in Nigeria.
“We intend to participate in the restoration and refurbishment of the Enugu-Onitsha Expressway.
“Conversations in this regard have already commenced, and further announcements will be made in due course.
“In line with our desire to plant deeper and more permanent roots in Nigeria, we have also initiated plans to commission a purpose-built, state of the art MTN Head Office, designed to act as a central hub for our network, a catalyst for creativity and innovation, and a showcase for the flexible working structures that are driving efficiency gains in this new normal working environment.
“Aligned with our wider commitment to environmental sustainability, it will meet the highest global environmental standards, demonstrating the role of green technology in our future.
“Following MTN Group’s stated intention to sell down up to 14% of its investment in MTN Nigeria, subject to market conditions over the medium-term, MTN Nigeria’s shareholders approved an equity shelf programme at the last Annual General Meeting.
“This will facilitate a process to increase ownership of the Company by more Nigerian retail and institutional investors.
“Alongside this, we further localised our predominantly Nigerian management team with the appointment of Nigerians to two key senior positions (Chief Marketing Officer and Chief Information Officer) previously held by expatriates.
:MTN Nigeria continues to invest in improved world class services and its network, accelerating the expansion of our 4G coverage and providing home broadband. As part of our rural connectivity programme,
“we plan to connect approximately 1,000 rural communities to our network this year with additional 2,000 communities in 2022. We are delighted that these are translating into strong operational performance in line with the objectives of Ambition 2025.
“In the next 3 years, we will invest over N600 billion to expand broadband access across the country in support of Government’s Broadband Plan”.
He further said, “Operationally, our mobile subscribers closed H1 at 68.9 million, down 9.9% from December 2020.
“This was due to the regulatory restrictions on new SIM sales and activations, which was lifted on 19 April 2021.
“Although the initial run-rate of additions has been slower than usual due to new process requirements, we anticipate growth to normalise in the short-term as more of our acquisition centres are certified for SIM registration.
“Finally, our Board of Directors has approved an interim dividend of N4.55 kobo per share to be paid out of distributable net income. This represents a growth of 30% over N3.50 kobo per share paid in H1 2020.”
Operational Review
Service revenue grew by 24.1% YoY, driven by the sustained growth in data and also partly due to the lower base in comparative 2020 voice revenue that resulted from lockdowns during that period.
Voice revenue grew by 13.1%, benefitting from an 11.8% increase in traffic and our customer value management (CVM) initiatives.
The impact on voice revenue from the industry-wide suspension of new SIM registration was partly offset by higher usage in our active SIM base as well as migration to a higher quality of experience.
Data revenue continued the positive momentum from H2 2020, rising by 48.3%. This was driven by increased usage from the existing base, supported by the accelerationin our 4G rollout and enhanced network capacity following the acquisition and activation of additional 800MHz spectrum in Q1.
Data traffic rose by 83.0% YoY, while smartphone penetration was up by 5.8pp to 49.3%. Our 4G network now covers 65.1% of the population, up from 60.1% in December 2020.
Fintech revenue rose by 48.2%, driven by increased adoption of Xtratime and our core fintech services. We continue to expand our MoMo agent network and broaden our service offerings. Our registered MoMo agents increased by 121,000in H1 2021 to more than 515,000. Transaction volumeincreased by 280.8% YoY to 55.6 million in H1 2021, and our active subscriber base is now more than 6.1 million, up 180.0% YoY.
Our digital business continued to gain traction on the back of our strong partner ecosystem and the uptake of our products and services. Digital revenue rose by 61.8%, also supported by our rich media and value-added services. Our active user base rose by 38.0% to over 3.9 million, led by Ayoba – our instant messaging platform – with more than 2.3 million active users.
The enterprise business revenue increased by 6.0%, demonstrating the continued recovery from the impact of the COVID-19 lockdown and the uptake of our services by the businesses we serve. We have made significant progress in concluding the operational modalities for the new pricing framework for USSD services, which incorporates the recovery of outstanding USSD debts.
We continue to pursue and realise efficiency through cost discipline and enhanced digitisation. However, due to an accelerated site rollout, the effects of Naira depreciation on lease rental costs and Covid-19 related expenditure, operating expenses increased by 24.6%.
Our continued ability to drive operating leveragehelped to drive EBITDA growth to 27.6%, with a1.4pp expansion in our EBITDA margin to 52.7%.
Capital expenditure in the period was 39.1% higher to N186.4 billion, as we continued to invest in our network to maintain service quality and aggressively expand our footprint in terms of 4G and rural coverage. We recorded a healthy free cash flow of N230.8 billion, up by 19.6%.
Despite a 50.6% increase in core capex excluding right of use assets to N114.5 billion, capex intensity remained within target levels at 14.5%. Depreciation and amortisation rose by 17.1% and net finance costwas down by 9.8%, resulting from a lower average cost of borrowings. Overall, we recorded a PBT growth of 54.1%, also reflecting the softer base of H1 2020.
New SIM Registration Requirement
We are actively supporting the Government’s NIN enrolment programme with more than380 points of enrolment active across the country. We are working with National Identity Management Commission (NIMC) to complete bulk verification of the National Identity Numbers (NINs) collected and increase the enrolment centres to provide an access point for as many Nigerian as possible.
To this end, we have acquired over 40,000 enrolment devices, which are being configured for this purpose. As of 26 July 2021, approximately 37 million subscribers have submitted their NINs, representing around 54% of our subscriber base and 65% of service revenue. The deadline for NIN verification has been extended to 31 October 2021.
Outlook
To enable us to continue to take advantage of emerging opportunities, we have refined our strategy. The new strategy called Ambition 2025 is closely aligned with that of MTN Group and is built on four key strategic priorities: build the largest and most valuable platforms, drive industry-leading connectivity operations, create shared value and accelerate portfolio transformation.
These priorities will define our focus for the next five years. Taking advantage of MTN’s existing platforms and assets, we are well-positioned to accelerate long term growth as we continue to monitor and manage the impacts of the pandemic.
We have a clear focus on sustaining double-digit service revenue growth ahead of inflation, driving 4G and rural network expansion, as well as positioning our fintech and digital businesses for accelerated growth in order to unlock their full value. In addition, we will continue to sustain our expense efficiency programme to strengthen our financial position and support margins.
In the remainder of the year, we anticipate that the base effects will partly influence our commercial and financial trends. Although the availability of foreign exchange remains a constraint, we strive to minimise its impact on the business.
We are driving a positive culture change across the organisation to enhance productivity and further improve performance. We maintain our strong focus on deeper, proactive and inclusive engagements to drive shared value for all stakeholders, while ensuring that our activities align with and contribute to the Government’s development agenda.
Finally, emerging trends indicate a steady recovery in economic activity. However, given the ongoing uncertainties presented by the new wave of the COVID-19 outbreak and the NIN registration exercise, we remain mindful of changes to the operating environment as the rest of the year unfolds.
MTN Foundation has been spotlighted as a model for private sector-driven healthcare development in Nigeria, following commendations at the 6th Arthur Mbanefo Lecture held at the University of Lagos, Akoka.
Themed “A Healthy Nation is a Wealthy Nation: The Role of Impact Investments and Sustainable Financing in Nigeria,” the lecture featured Dr. Tolulope Adewole, Managing Director of NSIA Advanced Medical Services Limited (MedServe), as keynote speaker.
Dr. Adewole praised the Foundation’s strategic investments, noting that MTN commits 1% of its profit after tax annually to development sectors. “They’ve invested ₦31.75 billion, reaching over 32 million Nigerians. Though only 25% went to health, it accounted for 51% of all lives impacted. That’s catalytic,” he said.
He cited MTN’s dialysis centre programme as a transformative intervention for patients with kidney disease, and highlighted community-focused initiatives like the Y’ello Doctor mobile scheme and ‘What Can We Do Together’ (WCWDT) programme, which revitalised 164 Primary Healthcare Centres, including 44 in 2024 alone.
Executive Director of MTN Foundation, Odunayo Sanya, reflected on the COVID-19 pandemic’s exposure of systemic health vulnerabilities. “When COVID hit, we realised a health emergency is also an economic and social emergency,” she said.
Sanya revealed that of the 52 PHCs remodeled in 2024, only one had clean water. “I’m not a doctor, but I know you can’t live a good life without clean water,” she added, reaffirming the Foundation’s commitment to bridging healthcare gaps in underserved communities.
Hundreds of university students across Africa are set to benefit from a new gamified learning experience on digital rights and inclusion launched by the leading pan-African non-profit organisation, Paradigm Initiative (PIN).
The Digital Rights and Inclusion Board Learning Experience (DRIBLE) is a game developed by Paradigm Initiative with support from the Open Society Foundations (OSF). The custom-designed board game provides young individuals with a fun and engaging entry point into digital rights and inclusion conversations, training sessions and storytelling tools.
The board game aims to build digital literacy, deepen understanding of online safety, and introduce young individuals to the organisation’s tools of impact. Currently being piloted in three universities: University of Lagos, Nigeria, the Catholic University of Eastern Africa (CUEA) in Nairobi, Kenya and the Dakar American University of Science and Technology (DAUST) in Dakar, Senegal, it will enhance interactions and create a holistic experience.
Speaking at the event launch at the University of Lagos, Nigeria, ‘Gbenga Sesan, Paradigm Initiative’s Executive Director, said: “PIN’s vision is to reach 20 million people through our Digital Inclusion and Digital Rights interventions. From Lagos, to Dakar, to Nairobi.. we will use the vehicle of our new Digital Rights and Inclusion Board Learning Experience (DRIBLE) which entails using gamification, training, multimedia materials, tools and other interventions to connect African youth with digital opportunities and protect their digital rights.”
‘Gbenga gave the keynote address on “Digital inclusion at PIN, our Past, Present and Future” and Nnenna Paul-Ugochukwu, the organisation’s Chief Operating Officer, said the goal of the learning experience would be instrumental in raising awareness of digital rights among the youth, building their capacity to address digital rights and inclusion issues in their communities. Prof. Olunifesi Adekunle Suraj shared a goodwill message with the students and other stakeholders.
Paradigm Initiative, which has been operational since 2007, started in a tiny cybercafe in Ajegunle, Lagos, Nigeria. Today, the organisation has expanded its wings to cover six African countries; Cameroon, Kenya, Nigeria, Senegal, Zambia and Zimbabwe, impacting the livelihoods of over 150,000 young Africans.
The launch of DRIBLE builds on the progress the organisation has made over the years in tackling the challenge of digital exclusion across Africa.
Paradigm Initiative’s tools of impact include Ripoti, a platform that enables individuals to report digital rights violations, Ayeta, a platform that provides digital security resources for stakeholders, more so human rights activists, defenders, journalists and other vulnerable groups, and the organisation’s latest short film, Whispers in the Wires.
Targeted at students, PIN rolled out a Campus Tour in the three universities on the continent starting July 15th, 2025.
Meta, the parent company of Facebook, has intensified its crackdown on fake accounts and spam, announcing it removed over 10 million fake profiles and roughly 500,000 spam accounts in the first half of 2025.
The sweeping purge is part of Meta’s broader effort to combat impersonation, fake engagement, and content duplication, aiming to elevate authentic creators and improve the quality of content across its platforms.
In a blog post, Meta said: “We’re making progress. In the first half of 2025, we took action on around 500,000 accounts engaged in spammy behaviour or fake engagement. We also removed about 10 million profiles impersonating large content producers.”
Meta stressed that accounts which primarily repost or recycle content without meaningful edits will face penalties such as reduced reach and the loss of monetisation tools.
The company also warned that repeatedly sharing unoriginal content — whether videos, photos, or text — undermines the platform’s integrity by crowding out genuine voices and making it harder for new creators to grow.
To support authentic creators, Meta is rolling out new tools that automatically trace reposted content back to its original source. The company says this will help ensure rightful credit and give higher visibility to original posts.
“Pages and profiles that post mostly original content tend to enjoy wider distribution across Facebook. Simply stitching clips together or adding a watermark will no longer count as meaningful editing. Content that provides real value and tells an authentic story is likely to perform better,” Meta explained.
Creators are also being cautioned against uploading content that includes watermarks from other platforms. Such posts could see their reach restricted or lose monetisation privileges altogether.
As part of its latest update, Meta introduced post-level insights on the Professional Dashboard, allowing creators to monitor how individual posts perform. They can also check their Support Home screen to see if their content or earnings are facing restrictions.
In a parallel development, Google’s YouTube updated its monetisation guidelines, stating that content deemed mass-produced or excessively repetitive will no longer qualify for ad revenue. The announcement initially sparked concern among creators, who feared it was a blanket ban on AI-generated content. YouTube later clarified:
“We welcome creators using AI tools to enhance their storytelling, and channels that use AI in their content remain eligible to monetise.”
Both tech giants say these new policies are aimed at raising content standards and safeguarding genuine creators in a crowded and rapidly evolving digital landscape.
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