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MTN Declares N60Bn H1 Dividend

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MTN Nigeria Communications Plc has earmarked N60 billion as interim cash dividend to shareholders as the telecommunication company marked its first post-listing performance with considerable growths across major indices.

 

The board of the telco indicated shareholders will receive a dividend per share of N2.95 for the first half ended June 30, 2019. This however represented a drop of 17.83 per cent from N3.59 per share paid for the first half of 2018.

 

Key extracts of the six-month report showed that profit before tax rose by 30.9 per cent to N141.8 billion in first half 2019 as against N108.35 billion recorded in comparable period of 2018. Profit after tax grew by 34.8 per cent from N73.4 billion to N98.93 billion.

 

Total turnover grew by 12.12 per cent to N566.95 billion as against N505.67 billion. Operating profit had risen by 39.49 per cent from N136.50 billion to N190.4 billion. Earnings per share rose by 34.8 per cent to N4.86 compared with N3.61.

 

The report showed that the telco’s mobile subscribers increased by 3.3 million within the first six months of this year to 61.5 million while service revenue increased by 12.2 per cent.

 

Voice revenue increased by 11.4 per cent, data revenue rose by 31.7 per cent while fintech revenue increased by 21.2 per cent.

 

However, digital revenue dropped by 64.5 per cent. The company’s earnings before interest, tax depreciation and amortisation (EBITDA) rose by 40 per cent to N304.9 billion while EBITDA margin improved by 10.7 percentage points to 53.8 per cent.

 

Ferdi Moolman, MTN Nigeria Communications Plc Chief Executive Officer, described the first half performance as a solid performance as the company continued to invest to improve network quality and expand 4G coverage.

 

He noted that recent work on revamping data prices and accelerating 4G network has put the company in a strong competitive position to offer more value to customers and provide new impetus for overall corporate growth.

 

He said the listing of the company on the Nigerian Stock Exchange (NSE) in May, this year demonstrated the company’s commitment to the market while providing opportunity to domestic investors to participate in and benefit from the company’s growth.

 

“Our overriding priority for the rest of the year is to focus on our BRIGHT strategy to build a sustainable business and create value for customers. We will continue to progress in the second half of the year making improvements to our network experience, subscriber growth and enhance operational efficiency. We expect lower data pricing and our acceleration of the 4G network expansion to bolster the acquisition of customers and data traffic volumes in the second half,” Moolman said.


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Telecom

MTN Subscribers Enjoyed Best Internet Performances in 2024 – Report

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The subscribers of MTN Nigeria enjoyed the best mobile Internet performances in 2024, according to nPerf’s 2024 report, which analysed mobile internet performance across Nigeria.

MTN Subscribers Enjoyed Best Internet Performances in 2024 - Report

nPerf, a French company has been a trusted partner for both fixed and mobile operators, providing comprehensive network testing solutions and analysis.

According to nPerf, in 2024, the mobile market in Nigeria saw significant developments and the leader for this period is MTN, maintaining its position as the global winner.

From January 1 to December 31, 2024, MTN led mobile internet in Nigeria across every measurable category, with great performance. Its subscribers enjoyed an average download speed of 17.82 Mbps, leaving Airtel at 9.98 Mbps and Glo at a distant 5.66 Mbps.

“This period highlights MTN’s continued dominance as the market leader, with no new entrants taking the lead in 2024. MTN emerged as the sole leader, showing impressive advancements across various KPIs and focus areas. The analysis showcases MTN’s superiority in Download speed, Upload speed, and Latency.

Upload speeds were similar, with MTN averaging 8.05 Mbps, Airtel 4.35 Mbps, and Glo 3.43 Mbps, even as reliance on solid internet connectivity never stopped increasing.

Latency, an important metric for real-time applications such as video calls and gaming, further enhanced MTN’s place in the market. The network achieved an average latency of 79.44 ms, comfortably outperforming Glo’s 89.44 ms and Airtel’s 119.85 ms.

MTN Subscribers Enjoyed Best Internet Performances in 2024 - Report

These figures are particularly important during peak periods (6 PM to 11 PM) when the network issues are at the highest. MTN’s ability to maintain consistent latency levels during these busy hours speaks to its superior infrastructure.

Beyond raw speeds, the quality of experience (QoE) was also analysed. In browsing performance, MTN scored an average success rate of 36.08%, surpassing Airtel at 28.86%, while Glo lagged at 29.42%.

This difference was also seen in video streaming, where MTN recorded an average streaming success rate of 72.35%, overshadowing Airtel’s 67.04% and Glo’s 53.81%.

Airtel, despite being a distant second in most metrics, delivered a commendable performance in specific areas, particularly video streaming.

Its streaming rate, at 67.04%, shows a strong emphasis on delivering quality experiences in this domain.

However, Airtel’s inability to match MTN’s speeds, browsing performance and latency asserted the gap between the two providers.

Glo, on the other hand, had steady progress throughout 2024. Although it lagged in download (5.66 Mbps) and upload speeds (3.43 Mbps), its performance in latency (89.44 ms) revealed some improvement in network responsiveness.

Glo’s focus on enhancing connectivity is obvious, but it remains apparent that the provider has some ground to cover before it can challenge the likes of MTN or even Airtel.

The data disclosed that whether downloading, browsing, or streaming, MTN subscribers always enjoyed the best experiences.

In the 4G focus area, MTN also stands out as the leader. These achievements underline the positive trends and strong market dynamics” according to nPerf.

The report also said that not only does MTN excel in download speed, upload speed, and latency, but it also leads in Video streaming.

nPerf’s report added that MTN dominates the 4G focus area, reinforcing its pioneering position in the mobile technology sector.

“Significant improvements include a remarkable enhancement in Upload speed. MTN’s consistent contributions have greatly strengthened the overall market landscape” it said

On Airtel, nPerf reported excellence in browsing and streaming, adding that Airtel, while not the market leader, demonstrates excellence in specific categories.

“With a strong performance in browsing and video streaming, Airtel secures its place as a key player. The operator’s contributions are vital to the market’s competitiveness, and its focus on enhancing user experience is evident” nPerf reported.

nPerf further reported that Glo showed steady progress with a commendable improvement in its overall score.

Although not a market leader, Glo has shown improvements in various areas, contributing positively to the market’s dynamics. The operator’s focus on enhancing connectivity and customer satisfaction is noteworthy, according to nPerf.

 


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NIGCOMSAT, Eutelsat Partner to Deepen Communication Connectivity via LEO Satellite

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Nigerian Communications Satellite (NIGCOMSAT) Ltd, in conjunction with Eutelsat, global leader in satellite  communications , are proud to announce a groundbreaking multi-year, multi-million-dollar partnership to deliver low Earth orbit (LEO) satellite services in Nigeria.

NIGCOMSAT, Eutelsat Partner to Deepen Communication Connectivity via LEO Satellite

This strategic agreement positions NIGCOMSAT as Nigeria’s leading satellite service provider by leveraging the OneWeb LEO network to deliver high-speed, low-latency connectivity.

The services will cater to a wide range of sectors, including government, enterprises, and underserved rural areas, supporting essential applications like remote communications, mobile connectivity, and offshore operations.

Mrs. Jane Nkechi Egerton-Idehen, managing director/chief executive officer, NIGCOMSAT, stated that, “We are delighted to deepen our collaboration with Eutelsat, a globally renowned satellite technology leader. This partnership is a milestone for NIGCOMSAT, enabling us to bridge Nigeria’s digital divide through the cutting-edge capabilities of OneWeb LEO satellites. Together, we will deliver scalable, reliable connectivity solutions to foster growth across government services, businesses and communities nationwide.”

She added, ‘this partnership attests to the strong ties between Nigeria and France in advancing satellite and space technology. By joining forces, Eutelsat and NIGCOMSAT are poised to drive innovation, accelerate digital transformation, and open new opportunities for connectivity across Nigeria and beyond.

Nigerian Communications Satellite (NIGCOMSAT) Limited is Nigeria’s premier satellite communications provider, committed to delivering world-class satellite services to empower communities and industries.

With its flagship NigComSat-1R satellite, NIGCOMSAT supports critical sectors such as  communication, education, health and security.

Eutelsat Group is a global leader in satellite communications, delivering connectivity and broadcast services worldwide.

The Group was formed through the combination of the Company and OneWeb in 2023, becoming the first fully integrated GEO-LEO satellite operator with a fleet of 35 Geostationary satellites and a Low Earth Orbit (LEO) constellation of more than 600 satellites.

The Group addresses the needs of customers in four key verticals of Video, where it distributes more than 6,500 television channels, and the high-growth connectivity markets of Mobile Connectivity, Fixed Connectivity, and Government Services. Eutelsat Group’s unique suite of in-orbit assets enables it to deliver integrated solutions to meet the needs of global customers.


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FG Caps Telecoms Tariff Hike at 60 Percent

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Dr. Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, has stated that, following recent agitations for an increase in telecommunications service tariffs by operators, any increase will not exceed 60 percent.

He disclosed this during an appearance on a Channels Television programme on Thursday, Tijani, who had earlier rejected the telecom companies’ request for a 100 percent hike, stated that the anticipated increase would fall between 30 percent and 60 percent.

According to him, agreeing to a 100 percent increase would negatively impact Nigerians and stifle economic growth.

He also mentioned that his team’s recommendations, based on KPMG reports, will soon be finalized and shared.

He said: “I think they should only increase by not more than anywhere between 30 to 60 percent. We are asking difficult questions, like can we possibly increase the local content in that sector, meaning can we reduce the amount of imports that are coming into that sector, which means they have to look for foreign exchange, which is more expensive.

“We have declared all their infrastructure as critical national infrastructure, that’s something they’ve been looking for for years. President Tinubu did that last year.

“The reason is that when people go and vandalise telecommunications equipment, it drops the quality of service that people get, but it also costs these companies a lot to repair. We’re taking that away.

“If you look at the tax reform, for instance, there are a number of things there to harmonize taxes that they pay, to reduce it in a way that is good for the country, but also allows these companies to thrive.

“We are, as a country, investing in that 90,000 kilometres that I mentioned. When we do the investment, it will allow these companies to be able to reach more people.

“If we are investing in towers in difficult-to-reach locations, in rural areas, it will give them the opportunity to increase the pool of customers that they have without making heavy investments.”


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