Despite MTN Nigeria’s regulatory and legal challenges the country remains the carrier’s biggest and most profitable market. Its earnings before interest, taxes, depreciation and amortization gained 16% to 21 billion rand ( about $1.25 billion) in Nigeria last year, driven by data-sales growth.
MTN listed the local unit in Lagos in 2019, and said earlier this year it plans to sell down more of its majority stake as part of an asset-sale plan that’s expected to generate almost 40 billion rand ($2.5 billion).
The company raised 14 billion rand from sales last year, including Nigerian preference shares, and is planning for at least a further 25 billion rand of disposals over the next three to five years.
MTN Nigeria’s figures, gives a 9.8 per cent the Group’s rise in revenue for 2019, to $8.8 billion. Nigeria and Ghana were its top-performing markets, with revenue rising 12.6 per cent and 22.9 per cent respectively, while domestic sales were near flat at 0.4 per cent.
Total subscribers increased by 18.2 million to 251 million.
MTN said its performance in South Africa was impacted by the implementation of subscriber rules by regulator ICASA, along with a reassessment of revenue recognition criteria due to delayed payments under a network roaming agreement with Cell C.
Profit reached ZAR8.9 billion, a slight increase from the ZAR8.7 billion it recorded in 2018.
MTN Group announced president and CEO Rob Shuter would step down in March 2021, with a succession process underway and scheduled to be concluded by the end of this year.
In a statement also revealing its 2019 results, MTN said Shuter would leave at the end of his contract, while thanking the executive for the “contribution he has made, and continues to make” to the business.
Notably, Shuter, who has been in charge since 2017, steered the company through some rough times, including recent woes in Nigeria. He also played a key role in a strategy overhaul, as part of the company’s aim to generate revenue from non-traditional services, including financial and media.
“Under his leadership significant progress has been made, including establishing and effectively communicating a clear vision and strategy, driving the resolution of a number of complex matters and delivering significant improvements in transformation, operational performance and staff morale,” MTN stated.
