MTNN Proposes N203.55bn Final Dividend

MTN Nigeria Communications  (MTNN) has proposed a final dividend of N203.55 billion, representing N10 per share for the year ended December 31, 2022.

The telecom company released its  audited results for the financial year ended December 2022 on the Nigerian Exchange Limited yesterday.

Mobile subscribers increased by 10.5 per cent to 75.6 million, active data users increased by 15.3 per cent to 39.5 million, while active fintech subscribers rose by 57.5 per cent to 14.9 million.

Service revenue increased by 21.5 per cent to N2.0 trillion. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 22.0 per cent to N1.1 trillion, while EBITDA margin increased by 0.2 percentage points to 53.2 per cent.

Profit before tax grew by 22.3 per cent to N534.0 billion, while net profit for the year rose by 21.1 per cent to N361.5 billion.

Earnings per share (EPS) rose by 21.3 per cent to N17.79, while Capital expenditure (Capex) rose by 23.5per cent to N504.3 billion.

Speaking on the performance, CEO, MTN Nigeria, Karl Toriola said: “navigating a challenging operating environment “2022 was challenging due to global macroeconomic and geopolitical volatility, resulting in higher inflation, supply chain uncertainties, foreign exchange volatility and availability.”

He stated that, “we continued to manage and invest in the resilience of our business and networks, expanding coverage and capacity with a focus on expense efficiencies and disciplined capital allocation.

“We became the first mobile network operator to launch a 5G network in Nigeria, providing coverage in key cities in the six geopolitical regions. Since its commercial launch in September 2022, we have rolled out 588 sites and brought the 5G network to 5G-enabled smartphones, starting with iPhone users. In this regard, we made good progress towards the execution of Ambition 2025 while delivering commercial and financial performance in line with our medium-term guidance.”

He pointed out that, “we significantly increased our shareholder base through MTN’s Offer for Sale, which was concluded on 31 January 2022, when the Securities & Exchange Commission’s (SEC) clearance of the Offer allotment was obtained.

“The Offer was the first phase of a series of transactions to increase Nigerian ownership in MTN Nigeria.”

Toriola added that, in line with the company dividend policy and guided by its ambition to create shared value for its stakeholders, the board of directors has proposed a final dividend of N10 per share.

This, he said, brings the total dividend for the year to N15.60 kobo per share, an increase of 18.9 per cent, delivering economic value to our shareholders.

He also noted that, “we are exploring a scrip dividend option as an alternative form of shareholder return to a cash dividend, subject to regulatory and shareholder approvals.”

Meanwhile, MTN Nigeria, yesterday, announced Kate Ene as its CEO for a day following her emergence as the winner of the 2022 MTN mPulse Spelling Bee out of over 11,000 participants who registered for the competition.

Kate, an inspiring 14-year-old student from Intimacy With Christ Secondary School, Mararaba, Nasarawa state, assumed leadership of Africa’s largest telecommunication network at 9am on Wednesday.

In his symbolic handover, Karl Toriola applauded Kate’s brilliance while reiterating the purpose of the initiative,

In her capacity as the CEO, Kate has met with MTN’s executives, and members of the media where she announced key initiatives, including the unveiling of additional mPulse education data bundles.

In addition to her CEO status, she has been awarded a N2.5m scholarship grant, a laptop, smartphone, and an MTN goody bag. MTN also presented a N350,000 grant and state-of-the-art ICT devices to her English teacher and school respectively.

Rounding off the event, the chief Human Resource officer, MTN Nigeria, Esther Akinnukawe, appreciated the staff members for their warm hospitality.

The MTN mPulse Spelling Bee is a self-development proposition designed by MTN Nigeria to promote digital literacy and academic excellence and thus empower the nation’s educational sector.