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MTN Nigeria Reports N385Bn Revenue for Q1 2021

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MTN Nigeria Communications Plc (MTN Nigeria) has announced its unaudited results for the quarter ended 31 March 2021, showing service revenue up by 17.2 per cent to N385.2 billion.

MTN Nigeria Reports N385Bn Revenue for Q1 2021

Karl Toriola, Chief Executive Officer, MTN Nigeria

The result also showed that earnings before interest, tax, depreciation, and amortisation (EBITDA) grew by 19.1 per cent to N204.5 billion

Karl Toriola, CEO, MTN Nigeria, said “We made good progress in the first quarter of 2021 despite the continued impact of the COVID-19 pandemic. We continue to prioritise the safeguards put in place to protect the health and well-being of our people, customers and stakeholders and to control the spread of the virus while ensuring network resilience and efficiency.

As part of our Y’ello Hope initiatives, we continue to support Government’s efforts in combatting the COVID-19 pandemic. We supported the most vulnerable in our communities, providing them with free-to-access services (including SMS and data) as well as essential medical supplies (tests and personal protective equipment).

We continue to support the Coalition Against COVID-19 (CACOVID) that has driven multiple initiatives, such as building isolation centres across the country. MTN Nigeria also paid taxes early in support of Government’s ongoing efforts. In addition, our REVV support programme for Micro, Small and Medium Enterprises (MSME) helps them navigate the new digital reality” Toriola stated.

Operationally, service revenue in Q1 grew by 17.2% YoY, in line with our medium-term target, supported by growth of 42.6% and 8.0% in data and voice revenue respectively.

He said that “This was achieved despite the impact of the pandemic and a decline in our subscriber base due to the effects of customer churn and the restrictions on new SIM sales and activations arising from changes in SIM registration regulations. We continue to collaborate with the Nigerian Communications Commission (NCC) and the Nigerian Identity Management Commission (NIMC) to update subscriber records with the National Identity Number (NIN).

Thus far, more than 35 million subscribers have submitted their NINs as at 30 April 2021, representing approximately 50% of our subscriber base and 63% of service revenue. We are also actively supporting the Government’s NIN enrolment programme, with 182 points of enrolment active across the country. We are working with NIMC to increase the enrolment centres to provide an access point for as many Nigerian as possible.

Impacted by the reduction in the overall subscriber base in Q1, active data subscribers declined marginally by 71,000 to 32.5 million. However, we recorded an 86.7% increase in data traffic and a 48.5% increase in usage (MB per user) from the existing base.

The improvement in data services was supported by the completion of our acquisition and activation of an additional 800MHz spectrum, enabling us to further increase traffic by 10% and enhance throughput by 79%.

Digital revenue grew by 101.0% and fintech revenue by 28.5% as customers continued to adopt more digital products and services, a trend accelerated by the pandemic. As at the end of March 2021, we had 449,100 registered MoMo agents and 4.6 million fintech customers.

Our ability to drive service revenue growth while managing the growth in expenses resulted in an acceleration in EBITDA growth to 19.1% and EBITDA margin expansion of 0.9pp to 53.1% YoY. This enabled profit before tax (PBT) and profit after tax (PAT) growth of 33.9% and 42.5% respectively.”

Voice revenue grew by 8.0%, supported by an 8.7% increase in traffic and our customer value management initiatives. The impact on voice revenue of the industry-wide suspension of new SIM registration in mid-December was partly offset by increased usage by active SIMs in our base and migration to a higher quality of experience.

Data revenue maintained the positive momentum from Q4 2020, rising by 42.6% YoY. This was led by increased usage and traffic, supported by 4G penetration and increased network capacity following the acquisition and activation of an additional 800MHz spectrum in March 2021. In line with our 4G acceleration, the 4G network now covers 61.8% of the population, up from 60.1% in December 2020. We added approximately 1.2 million new smartphones to the network, bringing smartphone penetration to 47.5% of our base, up from 45.9% in 2020.

Fintech revenue rose by 28.5%, driven by increased adoption of Xtratime and our core fintech services. We continue to expand our MoMo agent network and broaden our service offerings to include assisted withdrawal irrespective of the bank where the account is domiciled. Our registered MoMo agents increased by 54,000 to 449,146. The volume of transactions processed was over 24 million in the quarter, up more than four times YoY, from an active base of 4.6 million subscribers.

Our digital business continued to gain traction with the uptake of our products and services and the structural turnaround in the business. As a result, digital revenue rose by 101.0%, supported by our rich media and value-added services, while our active user base was largely flat at 2.8 million.

The enterprise business continued its recovery from the impacts of the COVID-19 lockdown as economic activity improved. However, service revenue for enterprise was largely flat YoY, mainly due to the non-recognition of USSD revenue in Q1. Normalised growth (excluding USSD revenue) was 2.6%. We continue to engage with the NCC, Central Bank of Nigeria (CBN) and deposit money banks (DMBs) to conclude the operational modalities for the new pricing framework that has been agreed upon for USSD services. The mechanism for and timing of the recovery of the industry-wide outstanding debts that exist for USSD services provided to the DMBs form part of this process. As at the end of Q1, N40.3 billion was due to MTN Nigeria. In the meantime, we continue to account for USSD revenue on a cash basis.

Expenses rose by 14.8%, mainly driven by a 19.2% increase in operating expenses arising from an accelerated site rollout and the effects of Naira depreciation on lease rental costs. The overall increase in expenses was partly mitigated by the comparatively moderate growth of 7.8% in cost of sales following the suspension of new SIM sales and activations. As a result, EBITDA rose by 19.1%, supported by revenue growth, with the EBITDA margin expanding by 0.9pp to 53.1%.

Capital expenditure in the quarter was N89.9 billion, up 19.3% mainly due to site rollouts, while free cash flow increased by 18.9% to N114.7 billion. Our core capex excluding right of use assets was up 27.8% to N31.6 billion. Depreciation and amortisation rose by 16.8% due to the impacts of Naira depreciation and a 2.5pp increase in value added tax in February 2020. We recorded a 10.5pp reduction in our overall cost of funding, despite higher borrowings, leading to a 10.6% decline in net finance costs. This was enabled by a 95% reduction in the reference benchmark rate to 0.6%.  Overall, we recorded a PBT growth of 33.9%, while PAT rose by 42.5% due to the release of an overprovision in deferred tax in the prior year.

Outlook

Our 2021 priorities remain unchanged, with a clear focus on sustaining double-digit revenue growth, driving 4G network expansion and positioning our fintech business for accelerated growth in order to unlock its full value. The acquisition of additional 800MHz spectrum positions us to deliver improved service speeds to Nigerians in support of the Government’s broadband initiative.

We will continue to sustain our expense efficiency programme to strengthen our financial position and support margins. We remain in dialogue with the DMBs on a pricing option for airtime sales commission while diversifying our airtime recharge channels to offer our subscribers more options to purchase airtime and stay connected.

We will pursue stronger and deeper stakeholder relationship and enhanced shared value across our stakeholder ecosystem while ensuring that our activities align with the Government’s development agenda. Environmental, social and governance (ESG) principles remain at the core of everything we do, with a focus on aligning our priorities to drive eco-responsibility, sustainable society, sound governance and economic value for all in Nigeria.

Following the commencement of SIM sales and activations, the initial run-rate of additions may be slower than usual due to new process requirements, system limitations and reduction of qualified locations for SIM registration. While this may impact the rate of additions in the short term, we are optimistic that the current processes underway will entrench a more robust and sustainable registration process as we reaccelerate subscriber growth over the medium term.

As the economy continues its steady recovery from the effects of the COVID-19 pandemic that impacted the business in 2020, we anticipate that the base effects will partly influence our commercial and financial trends in the remainder of the year. Although the availability of foreign exchange remains a constraint, we strive to minimise its impact on the business. Finally, we will continue to manage and invest in the resilience of our business and networks as we monitor the longer-term economic potential impacts of the pandemic.

 

 


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Beware of Quishing: The New QR Code Scam You Need to Know About – Sophos

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Sophos, a global leader of innovative security solutions for defeating cyberattacks, has released the results of Sophos X-Ops research on a new type of threat: quishing.

This new attack vector involves the use of fraudulent QR codes, emailed by threat actors, to bypass the phishing security measures put in place by companies.

This fraudulent QR code, embedded in a PDF document attached to an email, takes the form of a message about payroll, employee benefits, or other forms of official paperwork a business might send to an employee. Because QR codes are not readable by computers, the employee must scan the QR code using their mobile phone.

The QR code links to a phishing page, which the employee may not recognize as malicious since phones usually are less protected than a computer. The goal of the attackers is to capture employees’ passwords and their multi-factor authentication (MFA) tokens in order to access a company’s system by bypassing the security measures in place.

“We spent a considerable amount of time sifting through all the spam samples we had to find examples of quishing,” comments Andrew Brandt, principal researcher at Sophos X-Ops. “Our research has revealed that attacks that exploit this specific threat vector are intensifying, both in terms of volume and sophistication, especially when it comes to the appearance of the PDF document. »

In addition to social engineering tactics, the quality of emails, attachments and QR code graphics, these attacks seem to be growing in terms of organization as well. Indeed, some malicious actors now offer as-a-service tools to run phishing campaigns using fraudulent QR codes. In addition to features such as CAPTCHA bypasses or the generation of IP address proxies to bypass automated threat detection, these criminal organizations provide a sophisticated phishing platform that can capture the credentials or MFA tokens of targeted individuals.

To encourage organizations to better protect systems against this type of attack, Sophos X-Ops shares a list of recommendations:

· Be vigilant about internal emails about HR topics, salaries or company benefits: Sophos X-Ops’ research has found that social engineering tricks exploit these themes to trick employees into scanning fraudulent QR codes from their mobile devices.

· Install Sophos Intercept X for Mobile : Available on Android, iOS and Chrome OS, this solution includes a secure QR code scanner that helps identify known phishing websites and alert if the URL is considered malicious.

· Monitor risky sign-ins: Using identity management tools, organizations can detect unusual sign-in activity.

· Enable Conditional Access: This feature helps enforce access controls based on the user’s location, device status and risk.

· Enable effective access monitoring thanks to sophisticated logs: this type of advanced monitoring allows you to better visualize all access to the system and detect this type of threat in time.

· Implement advanced email filtering: Sophos’ QR code phishing protection solution detects fraudulent QR codes included directly in emails and plans to expand its solution to QR codes in attachments as early as the first quarter of 2025.

· Leverage on-demand email retrieval: Sophos Central Email customers who use Microsoft 365 have this feature to eliminate spam or phishing emails from corporate emails.

· Encourage employees to be vigilant and report incidents: Prompt reporting of anomalies to the incident response team is essential to protect company systems from phishing.

· Revoke suspicious user sessions: It is imperative to have a plan in place to revoke user access that shows signs of compromise.

Despite the continuous development of new attack vectors, organizations can protect themselves from compromised systems by equipping themselves with the right tools, fostering a culture and work environment, and surrounding themselves with security vendors that, like Sophos.


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DRIF25: PIN Announces Call for Session Proposals

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Stakeholders in the digital rights and inclusion space now have an opportunity to advocate for the same and shape policy development in the Global South.

This follows today’s call for session proposals by Paradigm Initiative (PIN) for the 2025 Digital Rights and Inclusion Forum (DRIF25) scheduled to be held in Lusaka, Zambia from April 29th to May 1st, 2025.

The session proposals should demonstrate tangible outcomes and be innovative.

At the same time, Paradigm Initiative will this time round provide delegates with an opportunity to support Digital Rights and Inclusion efforts by purchasing tickets for the event, which will be held under the theme, “Promoting Digital Ubuntu in Approaches to Technology.”

This new development resonates with the theme that calls for inclusive and collaborative approaches to advancing digital rights and inclusion across the Global South.

It also does not deny delegates the opportunity to register and attend the event for free. More details will be announced at a later date.

Sessions at DRIF25 will include panel sessions, lightning talks, pre-event workshops, exhibitions, launches, world cafe, workshops, tech demos and fireside chats.

They will be covered under the following thematic areas; Artificial Intelligence and Emerging Technologies, Trust and Accountability, Data Protection, Privacy and Cybersecurity, Digital Inclusion and Marginalised Groups, Digital Security, Human Rights and Freedoms.

The proposals should align with the event theme and demonstrate clear outcomes, creativity, and potential for impact.

Thobekile Matimbe, PIN’s Senior Manager, Partnerships and Engagements said in an era where technology profoundly shapes societies, DRIF25 is a call to action for advocates to champion and drive meaningful change in the Global South.

“This platform is not just about conversations but also pioneering solutions that reflect collective accountability and solidarity.

“By contributing to this event, participants lay building blocks for a more inclusive and responsive digital landscape.

“The journey to shape digital rights and foster unity in technological approaches has continued to gain momentum over the years,” she added.

In 2024, the organisation received 245 session proposals and hosted over 80 sessions, an increase from 2023’s 70 sessions. DRIF24 incorporated a blend of panel sessions, launches, tech demos, pre-event workshops, lightning talks and exhibitions under diverse tracks including digital rights, digital inclusion and digital security.

Key among them was the exclusive premiere of PIN’s fourth short film Undersight, and the launch of the organisation’s annual digital rights and inclusion report Londa, and digital toolkits, Ayeta, and Ripoti. The 2023 Londa report presented findings covering 26 African countries.

Every year, Paradigm Initiative (PIN), a leading pan-African non profit organisation works in collaboration with partners to bring together representatives from government, non-governmental organisations, academia, media, funding partners, the United Nations, the technical community, and the private sector within the digital ecosystem.

The event fosters collaboration across sectors, encouraging input from relevant stakeholders.

PIN is partnering with Bloggers of Zambia, Common Cause Zambia, Internews Network Zambia, Zambian Cybersecurity Initiative Foundation (ZCSI), Internet Society Zambia, Zambia Information and Communication Technology Authority (ZICTA) and the Ministry of Technology and Science to host the DRIF25 event.

Since 2013, PIN and partners have successively held 11 DRIF editions, with 2025 being the 12th Edition. In 2024 DRIF was held in Accra, Ghana, attracting 1,044 registered attendees and delegates from 61 countries across the world. In 2023, DRIF which was held in Nairobi, Kenya was attended by 601 participants drawn from 54 countries across the world.

DRIF has grown significantly over the years, evolving into a premier platform for dialogue on digital policy, rights, and inclusion, accommodating views and opinions from civil society, technology companies, government, academia, and other stakeholders.


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TD Africa Launches TecHERdemy to Empower 400 Nigerian Women in Tech

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In a significant milestone for women in tech, TD Africa officially launched the TecHERdemy program yesterday, 13th November 2024, an initiative aimed at equipping 400 young Nigerian women with essential digital skills to succeed in today’s technology-driven world.

Participants and the Executives of TD Africa at TecHERdemy program held recently

The launch event, held in the Yudala Height Building of the company and co-sponsored by global brands like Huawei, Microsoft and Cisco, brought together participants who had completed a series of online assessments to secure a spot in this highly anticipated program.

Mrs. Chioma Ekeh, ceo of TD Africa, expressed her enthusiasm for the TecHERdemy program, emphasizing how closely it aligns with TD Africa’s mission of “Empowering You.”

She reiterated that the training would offer the participants invaluable skills and insights to help them thrive in the technology sector.

“TecHERdemy is not just a training program; it’s a launchpad to a brighter future for each of you.

“I encourage you to seize this opportunity, as it is a chance to bring positive change, not only in your lives but also to empower others in your communities and beyond,” Mrs Ekeh remarked.

As the co-sponsor of the program, Huawei was represented by Gary Li, Channel Director, who expressed Huawei’s commitment to partnering with TD Africa to make this initiative a success.

“Huawei is proud to be part of TecHERdemy, a program that mirrors our commitment to innovation and equality in the tech sector.

“We are dedicated to supporting each participant’s journey, ensuring they gain industry-relevant skills to meet global standards,” said Mr. Li.

Participants were introduced to the core courses they will undertake over the next six months, which include Cybersecurity, Data Science, Artificial Intelligence, and Software Development.

Each course will be delivered by industry experts to ensure hands-on, practical learning that meets international standards. Successful graduates of TecHERdemy will receive certificates and job placement validating their new skills and expanding their career prospects in the fast-growing tech sector.

The launch of TecHERdemy underscores TD Africa’s commitment to bridging the gender gap in the tech industry by fostering a more inclusive and equitable landscape for all.

By investing in the next generation of female tech leaders, TD Africa and its partners are contributing to a more empowered and digitally savvy Nigeria, paving the way for a brighter future for women in technology.


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