MTN Nigeria Interim Profit Jumps 35% on Broadband, 4G Rollout

LAGOS (Capital Markets in Africa) – MTN Nigeria Communications Plc, the largest unit within MTN Group Ltd., grew interim profit by 35% as its newly acquired spectrum enabled it to increase broadband and 4G offerings in the West African country.

Chief Financial Officer Adekunle Awobodu will be leaving the business later this year “for family reasons,” and the process to find his replacement is well underway, the company said.

Earnings before interest, tax, depreciation and amortization for the six months through June surged 40% to 304.9 billion ($842 million) as measured by IFRS 16, the wireless carrier said in a statement on the Nigerian Stock Exchange website.

“We made significant network investments to improve quality and expand our 4G coverage,” Chief Executive Officer Ferdi Moolman said in the statement. “Our recent work to revamp our data prices and accelerate our 4G network has put us in a strong competitive position.”

The stock gained 1.6% in Lagos, while the parent company was little changed at 106.45 rand in Johannesburg.

MTN sold shares in Nigeria as part of a settlement it reached with Nigerian authorities over a $1 billion fine in 2017. The listing valued the unit at $6.9 billion, making it the biggest company on the Nigerian Stock Exchange after Dangote Cement Plc.

While MTN is involved in another dispute relating to a $2 billion tax claim, it has been investing in its Nigerian business, increasing its customers there by 3.3 million to 61.5 million.

Source: Bloomberg Business News