MTN Nigeria Records 22.0% Growth In Service Revenue

MTN Nigeria has said that in tbe first quarter of 2022, the telecommunication giant recorded a 22.0% growth in service revenue and EBITDA margins.

In a statement quoting the company’s Cheif Executive Officer, Karl Toriola over the weekend, the company added that it’s voice revenue also grew by 5.8% due to increased gross connections and higher usage from an active SIM base.

According to the statement, which was made available to kadecommunicationng, “MTN Nigeria recorded a solid Q1 2022 performance, tracking positively against our medium-term targets with 22.0% growth in service revenue and the expansion of EBITDA margins. This was delivered through solid commercial momentum and the ongoing execution of our Ambition 2025 strategy despite challenging trading conditions.

“Voice revenue grew by 5.8% as we recorded increased gross connections and higher usage from our active SIM base. This was enabled by our expanded customer acquisition touchpoints and rural telephony initiatives, as well as  our enhanced customer value management (CVM) toolkit, which reduced the impact of the SIM registration and activation restrictions.

“Data revenue rose by 54.0%, maintaining the accelerated growth trajectory through growth in subscriber base and data usage. This was sustained by an aggressive 4G network expansion and enhanced quality and capacity of our network to support rising data traffic. Data traffic rose by 84.8% YoY and usage (MB per user) by 69.8%.

“In addition, we added about a million new smartphones to our network in Q1, bringing smartphone penetration to 50.0%. As a result, our 4G network now covers 71.7% of the population, up from 70.3% in December 2021.

“We continue to drive home broadband penetration, reaching over 775k users, up by over 160k in Q1. Our goal is to Own the Home through differentiated value propositions, creating experiences that position MTN as the broadband service provider of choice. We are leveraging our unique assets and capabilities to capture a significant share of market growth.

“Fintech revenue rose by 46.5% on the back of the growing adoption of our fintech services and expanded user base. We continue to expand our MoMo agent network with more than 800k registered agents and over 166k active agents (agents who perform a minimum of ten revenue-generating transactions within 30 days).

“Having established a significant foundation of registered agent network, we are now focusing on scaling the active base. We have expanded our agent services to include card withdrawal services by deploying point of sales (POS) terminals to the agent network. This has contributed to growing our total volume of transactions to over 56.1 million, up 132.7% YoY, by more than 10.7 million active users (up 135.2%).

“Digital revenue grew by 35.3% as penetration of our digital products continues to deepen, driven by increased usage from our active base. We have reached 7.4 million digital subscriptions (up 164.1% YoY), with ayoba accounting for 45% of the subscriptions and Rich Media accounting for 55%.

“Revenue from digital services was driven by Rich Media, Mobile Advertising and Content VAS. We are transforming our Y’ello Digital Platforms into a one-stop destination that caters to all consumer segments.

“Revenue from the enterprise business rose by 34.3%, underpinned by the onboarding of new customers across segments and the uptake of our enhanced services. Our enterprise business is transitioning from product to platform while leveraging core mobile and fixed connectivity to serve customers across all segments better.

“We have commenced executing programs to digitise and transform micro, small and medium enterprises (MSMEs) in Nigeria. Key among these is developing a cloud technology marketplace to empower, educate and enrich MSMEs. Our goal is to drive further adoption of enterprise platforms (internet of things and cloud), creating additional value for our customers and enabling them to innovate while remaining profitable