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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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Telcos Resume SIM Card Sales after 2-Week Halt

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Telecommunications operators have resumed full SIM swap and related services following a four-week nationwide outage linked to the National Identity Management Commission (NIMC)’s migration to a new verification platform.

Telcos Resume SIM Card Sales after 2-Week Halt

The outage rendered millions of subscribers unable to perform SIM-related tasks such as swaps, replacements, and activations.

Operators in the industry say the disruption began on June 26, 2025 when telcos temporarily halted SIM registrations and swaps due to unforeseen technical challenges during the transition to NIMC’s upgraded identity verification system.

The migration was mandated to enhance the integrity and efficiency of national identity management but caused major service interruptions across all Nigerian networks.

However, July 21, both MTN and Airtel confirmed via their social media handles that SIM swap services have now fully resumed.

MTN announced: “SIM swaps have now resumed. We can confirm that NIMC services are fully operational and appreciate their support in the migration to a new platform for NIN verification services for the telecommunications industry.

In a public update issued via its MTN Nigeria Support handle on X (formerly Twitter), MTN confirmed that SIM swaps have now resumed.

Telecom operators complained that the portal was unreliable or inaccessible, which resulted in the suspension of SIM swaps, number porting, and new SIM registrations, even though NIMC maintained that the platform was operating as intended.

Unexpected technical difficulties arose during the switch to the new platform, according to the Association of Licensed Telecommunications Operators of Nigeria.

Real-time NIN verification for SIM registration, replacement, and network migration was impacted by these issues.

“Unexpected technical difficulties have surfaced, impacting real-time NIN verification for SIM registration, replacement, and porting, following a recent directive from the National Identity Management Commission mandating Mobile Network Operators to transit to a new identity verification platform,” ALTON stated in a previous joint statement signed by Gbenga Adebayo, chairman, and Damian Udeh, publicity secretary.

 


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Nigeria, Others Achieve 84% Adult Mobile Phones Penetration

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The World Bank has affirmed that 84 per cent of adults in low-and middle-income economies, including Nigeria, own personal mobile phones.

The bank in its Global Findex 2025 report said mobile phone ownership was widespread and nearly everywhere. It said data from the Global Findex 2025 Digital Connectivity Tracker, revealed that “86 per cent of adults worldwide, and 84 per cent of adults in low- and middle-income economies, own personal mobile phones.”

The report pointed out that mobile phones and the internet had become widespread and essential to daily life in every economy around the world.

A earlier overview had indicated that Nigeria had a high mobile phone penetration rate, with estimates around 85 per cent to 87 per cent in 2024.

This translates to over 200 million mobile connections, making Nigeria a leading market in Africa for mobile phone ownership and usage. While the overall penetration is high, there’s a growing trend towards smartphone adoption, with forecasts predicting over 140 million smartphone users by 2025.

According to DataReporter, a total of 150 million cellular mobile connections were active in Nigeria in early 2025, with this figure equivalent to 64.0 per cent of the total population.

However, note that some of these connections may only include services such as voice and SMS, and some may not include access to the internet.

There were 107 million individuals using the internet in Nigeria at the start of 2025, when online penetration stood at 45.4 percent. Nigeria was home to 38.7 million social media user identities in January 2025, equating to 16.4 percent of the total population.

These headline stats offer a great overview of the “state of digital” in Nigeria at the start of 2025, but in order to make sense of how digital trends and behaviours have been evolving over time, we need to dig deeper into the data.

According to the World Bank, “as of 2024, individual ownership of mobile phones reached 86 per cent of adults worldwide.

“For many people, barely an hour goes by without their using a mobile device to make a call, ext a friend, read the news, access business information, post a meme on social media, pay for something, play a game, engage with a colleague or a customer, or search for information.

“As access to and use of digitally connected technologies increase, people, businesses, and governments place an increasingly high priority on online interactions. “Digitally connected technologies have clear, well-documented benefits.”

It further highlighted that access to mobile phones and the internet was associated with reduced poverty, increased consumption, and more employment for individuals in lowand middle-income economies.

“Women also experience these benefits, as internet access enables access to flexible jobs3 and has been shown to increase female labor force participation. “Mobile phones also facilitate information sharing.

For instance, in agricultural contexts, farmers’ access to real-time prices and buyer demand data can inform their decisions on where to sell, enhancing market efficiency and reducing the distances they would otherwise travel to get the best return for their product and time.

“Internet access also helps create jobs and aids individuals and countries in exporting goods and services,” it added. The World Bank further noted that owning a mobile phone furthermore enabled financial access through mobile money and other mobile financial services.

It added that these financial accounts and services, typically offered by mobile network operators or fintech firms and accessed via networks of local agents, were associated with lower rates of poverty, increased consumption and savings,and greater resilience to economic shocks.


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Sophos Secures Leadership Spot in 2025 Gartner Magic Quadrant for Endpoint Protection

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Sophos, a global leader of innovative security solutions for defeating cyberattacks, today announced that it has been named a Leader in the 2025 Gartner Magic Quadrant for Endpoint Protection Platforms (EPP), marking the 16th consecutive time the company has received this recognition.

Sophos has been recognized in the Gartner Magic Quadrant for Endpoint Protection Platforms (EPP) since the inaugural publication for this category in 2007.

Sophos’ market-leading endpoint security solutions include Sophos Endpoint powered by Intercept X, Sophos Extended Detection and Response (EDR/XDR), and Sophos Managed Detection and Response (MDR).

Over 300,000 organizations trust Sophos endpoint security solutions to defend against cyberthreats, including advanced remote ransomware attacks and active adversaries.

Unique to Sophos, the solution includes adaptive defenses that automatically disrupt attackers by dynamically adjusting protection levels based on threat context.

“Sophos’ strength lies in its prevention-first strategy, designed to stop breaches before they start, adapt defenses in real time, and strengthen detection and response when it matters most,” said Kyle Falkenhagen, SVP, Product Management, Sophos. “We believe that receiving this recognition in the highly competitive endpoint security market for 16 consecutive reports reflects our relentless focus on developing innovative solutions that stay ahead of the global threat landscape and the adversaries we face every day.”

Sophos and Secureworks: The future of protection, detection, and response

Following Sophos’ acquisition of Secureworks in February 2025, combining two leading and complementary portfolios to offer a comprehensive suite of solutions for small, midmarket and enterprise organizations.

Secureworks Taegis XDR customers can use Sophos Endpoint to elevate their cyber defenses, at no additional charge, delivering both improved protection and return on investment.

The integration of Secureworks also adds a new Counter Threat Unit (CTU) to the Sophos X-Ops advanced threat response joint task force, further expanding the rich threat intelligence that informs all customers’ defenses.

Backed by Sophos’ advanced security technologies and a broad network of intelligence contacts and partners, the CTU plays a critical role in identifying and tracking threat actors and analyzing anomalous activity, uncovering new attack techniques, threats, and major shifts in the threat landscape.


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