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MTN Nigeria’s Mobile Subscribers Decline by 5 Million to 71.5 Million in Q1 2021

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MTN Nigeria Communications Plc has announced its unaudited results for the quarter ended 31 March 2021.

The telecom company in a released unaudited result, reveals that its mobile subscribers declined by 5 million to 71.5 million due to the effects of customer churn and the regulatory restrictions on new SIM sales and activations.

The telelecom company’s active data users also declined marginally by 71,000 to 32.5 million.

However, its service revenue increased by 17.2 per cent to N385.2 billion, while

Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) grew by 19.1 per cent to N204.5 billion.

EBITDA margin increased by 0.9 percentage points to 53.1 per cent. Capital expenditure was up by 19.3 per cent to N89.9 billion, up 27.8 per cent to N31.6 billion excluding right of use (RoU) assets.

The result showed that profit before tax grew by 33.9 per cebt to N102.9 billion, while earnings per share rose by 42.5 per cent to N3.60 kobo.

According to the report, “Operationally, service revenue in Q1 grew by 17.2 per cent year on year (YoY), in line with our medium-term target, supported by growth of 42.6per cent and 8.0 per cent in data and voice revenue respectively.

“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).”

Commenting on the report, MTN Nigeria CEO, Karl Toriola, 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 said MTN Nigeria would continue to actively support the federal government’s NIN enrolment programme, with 182 points of enrolment active across the country, noting, “We are working with NIMC to increase the enrolment centres to provide an access point for as many Nigerian as possible.”

The report further stated that digital revenue grew by 101.0 per cent and fintech revenue by 28.5 per cent 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,” the report said.

The report further explained that enterprise business continued its recovery from the impacts of the COVID-19 lockdown as economic activity improved.

It said expenses rose by 14.8 per cent, mainly driven by a 19.2 per cent 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 per cent in cost of sales following the suspension of new SIM sales and activations. As a result, EBITDA rose by 19.1 per cent, supported by revenue growth, with the EBITDA margin expanding by 0.9pp to 53.1 per cent,” the report stated.

Giving insights of general business outlook, Toriola said:” 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.”

He said MTN would continue to sustain its expense efficiency programme to strengthen its financial position and support margins.

“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,” Toriola added.

 

 

 


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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Group Advocates for Digital Rights at 2024 Internet Governance Forum

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Paradigm Initiative (PIN), a leading pan-African organisation dedicated to advancing digital rights and inclusion in the Global South, has made significant contributions to the just-concluded 2024 Internet Governance Forum (IGF) in Riyadh, Saudi Arabia.

PIN’s participation in the prestigious global event underscores the organisation’s commitment to fostering inclusive digital policies and ensuring that Africa’s voices are central in global discussions about the future of the internet.

During the week-long forum, PIN team members played key roles in numerous sessions, emphasising the importance of a digital rights perspective in the development of emerging technologies, advocating for a more inclusive digital future, and addressing the specific challenges the African continent faces in terms of digital access and inclusion.

PIN Executive Director, ‘Gbenga Sesan, spoke at high-profile sessions, including the Leadership Panel on ‘The Internet We Want’, which outlined the vision for a global internet that is accessible, secure, and inclusive.

At the Africa Youth IGF Parley, ‘Gbenga provided a platform for young Africans to address pressing issues such as internet restrictions, the digital divide, and digital rights violations.

Adeboye Adegoke, Senior Manager for Grants and Programmes Strategy at Paradigm Initiative, contributed to Open Forum #12, advocating for policies that ensure a rights-respecting and inclusive digital future. His discussions highlighted the importance of policies that place human rights at the core of technological advancements.

Ihueze Nwobilor, Senior Programmes Officer, spoke at the session, ‘A Rights-Respecting Approach to Emerging Tech Development,’ where he called for the prioritisation of human rights in the development and deployment of emerging technologies across Africa and beyond.

The organisation’s Senior Manager for Partnerships and Engagements, Thobekile Matimbe, shared valuable insights during the ‘Better Products and Policies Through Stakeholder Engagement’ session.

She emphasized the role of the private sector in engaging with local communities to ensure that digital products and policies are inclusive and meet the needs of vulnerable groups across Africa.

Bridgette Ndlovu, PIN Partnerships and Engagements Officer, moderated a session on ‘Implementation of the USF in 26 African Countries,’ where she and other speakers, including ‘Gbenga Sesan, discussed the crucial role of Universal Service Funds (USF) in advancing digital inclusion, particularly in underserved and rural areas.

PIN’s participation at IGF 2024 has been an important moment for advocating digital rights in Africa. “Paradigm Initiative’s participation was a powerful reminder that Africa’s digital future must be shaped by inclusive, rights-respecting policies.

“Our participation at the IGF is a continuous demonstration of the need for all stakeholders to collaborate in building a more inclusive and accessible internet for everyone, especially those in under-served communities,” PIN Executive Director, ‘Gbenga Sesan stated.


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Patricia Technologies Begins Repayments to Customers Affected by 2022 Security Breach

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Lagos-based financial technology firm Patricia Technologies has commenced repayments to customers impacted by a 2022 security breach. This follows a two-year period where the company focused on recovering funds and rebuilding trust.

In 2022, Patricia experienced a significant cyberattack, resulting in the loss of over 600 million Naira from customer accounts. Following the breach, the company temporarily restricted withdrawals and collaborated with law enforcement, leading to the arrest of several suspects, including a prominent politician.

Patricia had previously requested a two-to-five-year repayment window, a plan that has now begun to be implemented. The company has started disbursing funds to affected customers in phases, with the first batch of payments initiated on December 10, 2024.

CEO Hanu Fejiro emphasized the company’s commitment to its customers, stating, “This repayment process represents a milestone in fulfilling our promise to make things right.”

He encouraged customers to update their information on the Patricia platform and monitor official channels for further updates on their individual repayment timelines.

Subscribers who are getting paid in this phase have since been officially notified by email. One of the subscribers, with initials BP (for purposes of confidentiality), expressed appreciation and satisfaction with being paid by Patricia via an email reaction: “I really appreciate your effort. Though it took a long time, I’m satisfied with what I’ve received. Thank you for keeping to your words.”


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From Niche App to Global Giant: TikTok’s Controversial Journey

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TikTok’s rise from a niche video-sharing app to a global social media giant has sparked controversies worldwide, with concerns over its links to China and its influence on users and politics.

In Albania, Prime Minister Edi Rama announced Saturday that TikTok would be banned for at least a year starting in 2025.

The decision follows a tragic incident in Tirana where a 14-year-old was killed and another injured in a fight stemming from an online confrontation. Rama described TikTok as the “thug of the neighborhood.”

In Romania, the European Union is investigating whether TikTok played a role in far-right candidate Calin Georgescu’s unexpected first-round presidential election victory.

The probe focuses on alleged Russian interference and claims of “preferential treatment” by TikTok. This marks the platform’s third EU investigation, potentially risking fines of up to six percent of its global revenue.

TikTok stated it has implemented “robust actions” to combat election misinformation, while Russia denies meddling.

In the United States, TikTok faces mounting pressure after the government passed a law in April requiring ByteDance, its Chinese parent company, to divest from the platform by January 2025.

The U.S. claims TikTok allows China access to American user data, a claim TikTok denies. ByteDance admitted its employees had accessed U.S. user data but insisted it does not share information with Chinese authorities.

TikTok could face a nationwide ban if ByteDance fails to comply, threatening its 170 million U.S. users.

Australia recently enacted a landmark law banning under-16s from accessing social media, including TikTok, with hefty fines of up to AU$50 million for noncompliance.

TikTok expressed disappointment, warning the law could push young users to less regulated parts of the internet.

In Europe, TikTok was forced to remove an engagement feature in its TikTok Lite version after EU regulators raised concerns about its addictive nature.

The feature rewarded users aged 18 and older with points redeemable for goods based on time spent on the app.

TikTok also faces criticism for its role in spreading hazardous challenges, some of which have reportedly led to child deaths, such as the blackout challenge.

Disinformation remains a significant issue, with a study by NewsGuard revealing that one-fifth of videos on topical subjects like the Russia-Ukraine war contained misleading or false information.

Despite these controversies, TikTok remains a dominant force in social media, attracting creators and influencers worldwide.

Its powerful algorithm and innovative features have secured its place at the forefront of digital engagement.

However, the platform continues to grapple with mounting scrutiny over its practices and societal impact.

TikTok’s meteoric rise has reshaped the social media landscape, cementing its status as a global powerhouse with over 1.04 billion monthly active users worldwide as of 2024.

This milestone, achieved in less than a decade, underscores TikTok’s unparalleled growth trajectory compared to platforms like Facebook and Instagram, which took significantly longer to reach similar heights.

In the United States alone, 170 million people actively use the app, contributing to its $16 billion U.S. revenue in 2023.

Globally, TikTok engages over a quarter of social media users and nearly one-fifth of internet users monthly, with U.S. adults spending an average of nearly an hour daily on the platform.

Its popularity is further evidenced by 137 million downloads in the first quarter of 2024.

Since its 2018 launch, TikTok has grown from 55 million users to over a billion, fueled by its dynamic algorithm and appeal across diverse demographics.


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