MTN Nigeria says operating cost hits by naira devaluation, dollar shortages
The local unit of South Africa’s telecoms giant, MTN Nigeria said its revenue for the first six months of the year climbed 12.5 percent to N638.1 billion, driven largely by sustained growth in data revenue and Value Added Services.
The telecoms firm said its revenue stood at N567 billion in the same period of last year, according to the regulatory filing by MTN on Friday.
The company said total operating expenses rose by 17.5 percent year-on-year ahead of revenue growth to N311 billion in the year to June, from N264.6 billion last year.
The rise in operating expenses was attributed largely to the impact of the devaluation of the naira and foreign exchange scarcity on USD costs.
However, the company recorded a 8.2 percent growth in its EBITDA to N3271 billion in the first half of the year, compared with N302.4 billion recorded last year.
Depreciation and Amortisation Charges edged higher by 8.5 percent year-on-year while operating profit remained resilient, growing by 8 percent to N204.5 billion in the six months period of 2020 from N189.4 billion in the same period of 2019.
On the negative side, Net Finance Cost jumped by 38.2 percent to N65 billion due to a confluence of 27.7 percent decline in Finance Income as well as a 26.2 percent y/y increase in Finance cost. The increased leverage cost pressured Pre-Tax profit which fell 2 percent y/y to N139.6 billion in H1 2020.