MTN plans to raise about R15 billion ($1 billion) from shareholding sales in markets outside Africa, proceeds which will be used to reduce its huge debt of nearly R50 billion ($3.5 billion) for the year to December 2020 as well as allocate more capital investments in Africa by 2025.
In Nigeria, MTN, through its local unit, has earmarked N600 billion ($1.5 billion) over the next three years to expand broadband access in the country.
For MTN Nigeria, half-year 2021 results show that service revenue increased by 24.1 percent year-on-year, despite the number of its mobile subscribers declining by 7.6 million (nearly 10%).
“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,” MTN Nigeria’s CEO, Karl Toriola, said on an analyst call.
While user numbers fell, MTN Nigeria company managed to increase service revenue to N790.3 billion (about R27 billion, $1.9 billion) driven by a surge in data usage.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 27.6 per cent to N417.2 billion ($1 billion) while transaction volume for mobile money increased by 280.8per cent year-on-year to 55.6 million. Its total MoMo active subscribers reached 6.1 million,” the financial statement said.
