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MTN Nigeria Records N790.3b Increase in Service Revenue in Half –Year Ended 30 June 2021

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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.

 


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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. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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India Asks Meta to Suspend WhatsApp Username Rollout over Fraud Concerns

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Indian government has asked Meta Platforms to suspend the rollout of WhatsApp’s proposed username feature in the country over fears that it could fuel online fraud, impersonation and phishing attacks.

India Asks Meta to Suspend WhatsApp Username Rollout over Fraud Concerns

WhatsApp

The directive, issued by the Ministry of Electronics and Information Technology (MeitY), comes days after WhatsApp announced plans to introduce usernames globally, allowing users to connect without sharing their phone numbers in a move aimed at enhancing privacy.

India, WhatsApp’s largest market with more than 500 million users, expressed concern that the feature could make it easier for cybercriminals to impersonate individuals and organisations, particularly among users with limited digital literacy.

According to media reports, the ministry, in a letter to Meta, warned that the feature could increase incidents of online fraud, phishing, digital arrest scams and identity theft.

A senior government official was quoted as saying that malicious actors could claim usernames resembling those of legitimate individuals and use them to deceive unsuspecting users.

The ministry has reportedly asked Meta not to launch the feature in India until consultations with the government are concluded and the company provides satisfactory explanations on the safeguards built into the system. Authorities have also asked WhatsApp to respond to the concerns within three days.

Responding to the concerns, Meta said the username feature had not yet gone live in India and stressed that multiple security measures had been incorporated to prevent abuse.

The company said usernames for high-profile public figures and verified organisations had already been reserved to prevent impersonation.

Meta added that users would still require a phone number to register for WhatsApp and that the platform had introduced several layers of protection, including limits on messaging unknown users, restrictions on repeated attempts to guess usernames, and systems to detect and remove impersonation and scam-related activities.

The latest development comes as India intensifies efforts to combat cybercrime amid a sharp rise in digital fraud cases across the country.

Government data indicate that financial losses from cyber fraud have risen significantly in recent years, prompting closer scrutiny of digital platforms and their security features.


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WhatsApp Usernames Spark Privacy Fears

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WhatsApp’s introduction of usernames ostensibly to increase privacy for users so they don’t have to swap phone numbers – could backfire if hackers turn usernames into a new avenue for privacy attacks.

This is according to two experts, who both note that usernames will be fair game for hackers, while also being accessible to governmental agencies and advertisers, upending WhatsApp’s key to success: conversations and calls are end-to-end encrypted by default.

WhatsApp has always stated that its encryption “ensures that only you and the person you are communicating with can read or listen to them, preventing anyone in between – including WhatsApp, Meta, or cyber criminals – from accessing your data”.

Over the weekend, the messaging app said it was introducing usernames so that users provide these as contact details instead of phone numbers, which it calls “a major privacy feature”. It is encouraging users to “reserve your username now, before the feature launches later this year”.

“Sometimes you just want to chat without handing over your digits,” WhatsApp says, noting that a phone number is personal and tied to many parts of a user’s life.

The Facebook and Instagram owner says: “This is also true for group conversations. You want to join the parent chat for the soccer team but you’re not ready to give your phone number to people you’ve never met.”

Trading View, a financial markets analysis platform, says: “The approach could help Meta position the update as a controlled privacy tool rather than a discovery feature, while bringing WhatsApp closer to rival messaging apps such as Signal, which already allows username-based conversations.”

It adds there will be no directory or username suggestions, so users will need to know a person’s exact username to contact them for the first time. An optional username key can be enabled to further restrict who is able to message them.

Meta is also introducing safeguards as the feature rolls out to reduce the risk of impersonation and scams, Trading View explains. Existing Facebook and Instagram usernames will be reserved for their current owners during the reservation period, and certain usernames associated with public figures, celebrities and government entities will remain permanently protected.

ICT veteran commentator Adrian Schofield, however, questions whether the feature will deliver the privacy benefits users expect. “Short usernames will not be difficult to find and are likely to become a new ‘game’ for those who enjoy breaking privacy protection,” he says.

The big issue is privacy, says T4i director Mark Walker, formerly with research company IDC. WhatsApp built its reputation on shielding users’ identities regardless of which groups they joined, or who they associated with. That promise, he argues, is now being quietly redefined.

“‘Privacy’ now means protection from impersonation by other users, not privacy from the platform’s own surveillance, data linkage, or other entities. It’s a security feature rebranded for a privacy-sensitive audience, directly trading away individual privacy for a form of collective safety,” he says.

Walker adds: “Users value WhatsApp for its privacy; none of the groups you join or people you associate with are shared externally with advertisers. That is what is being eroded.”

This move, Walker says, is “a sophisticated monetisation play,” using privacy, security and regulation to motivate users to verify their identities – for a fee – while positioning Meta as what he calls “the all-seeing trusted eye” attractive to both advertisers and government agencies.

In its announcement, Meta says users can reserve a username to use later this year when the feature launches. “A lot of names overlap, which is why we’re opening reservations early so everyone has the opportunity to select the username that matters to them.”

Content creators, small businesses and organisations that want to maintain a consistent online presence will be able to claim their existing Instagram or Facebook username on WhatsApp through reserved username options, says Meta.

“For most people, choosing a WhatsApp username should be something unique that only people you want to contact you will know. If you need help picking one, we have a username generator to make one work just for you,” Meta says.

WhatsApp had reached three billion users globally as of Meta’s 2025 first quarter results, or 36% of the world’s population. “WhatsApp now has more than three billion monthly actives, with more than 100 million people in the US and growing quickly there,” CEO Mark Zuckerberg said at the time.

During Meta’s latest results, Zuckerberg said: “WhatsApp continues to see strong momentum too, including in the US.”

Schofield questioned whether desirable short usernames could become targets for impersonation. “Look at the older Gmail accounts! Time to take a good look at alternative platforms? This feature will be rolled out in tranches,” Meta says.

 


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Airtel Nigeria CEO Urges Adoption of Intelligent Technology Platforms to Accelerate National Growth

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Dinesh Balsingh, Airtel Nigeria’s Chief Executive Officer, has called on business leaders to accelerate Nigeria’s digital future by embracing intelligent technology platforms that drive innovation, productivity, and sustainable economic growth.

Speaking at the Lagos Business School (LBS) Breakfast Club on the theme, “From Telco to Techno,” Balsingh said the telecommunications industry is evolving beyond connectivity to become the foundation for enterprise transformation and the country’s digital economy.

Balsingh explained that while previous generations of mobile technology connected people through voice, internet access, and mobile broadband, the future lies in intelligent ecosystems powered by artificial intelligence (AI), the Internet of Things (IoT), satellite connectivity, and integrated enterprise solutions.

“The role of telecommunications has fundamentally changed. Businesses are no longer asking only for connectivity; they want solutions that improve productivity, strengthen security, and accelerate digital transformation. That is the journey Airtel is leading. We are evolving from a telecommunications company into a technology partner that helps organisations unlock growth and create long-term value,” he said.

Noting that value is no longer measured by the volume of data consumed but by the business outcomes technology delivers, he highlighted a key shift in telecommunications to AI-powered customer protections, industry-specific digital solutions, IoT platforms, and hybrid satellite-terrestrial networks that extend reliable connectivity to underserved communities and remote business locations.

“Technology should do more than connect people. It should protect them, simplify operations, and help businesses make better decisions. Investments are now focused on building smarter, more resilient digital infrastructure that supports organisations across every sector of the economy.”

He added that sectors including retail, education, healthcare, government, manufacturing, and oil and gas increasingly require integrated digital solutions that combine connectivity with cloud services, intelligent networking, surveillance, automation, and data analytics.

Balsingh also urged business leaders to rethink their digital priorities, noting that future competitiveness will depend on how connected, intelligent, secure, automated, and resilient their organisations become.

“The organisations that will lead the next decade are those that invest today in intelligent digital infrastructure. Our customers are no longer buying connectivity alone. They are investing in productivity, intelligence, and digital transformation.”

The session, which also featured the IMF Resident Representative for Nigeria, Christian Ebeke, formed part of the Lagos Business School Breakfast Club, a platform that brings together business executives and industry leaders to examine emerging trends shaping the future of enterprise and economic development.

Airtel Nigeria’s participation reinforced its commitment to supporting Nigeria’s digital transformation by enabling businesses with innovative technologies that improve efficiency, strengthen resilience, and unlock new opportunities for growth across the country’s rapidly evolving digital economy.

 


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