NCC renews MTN Nigeria operating licence for another 10 years.

The Nigerian Communications Commission (NCC) has finally renewed MTN’s operating spectrum and licence in Nigeria for another 10 years from September.

In a statement signed by the company’s secretary, Uto Ukpanah, the telecommunications giant revealed that the NCC approved the renewal of its Unified Access Service (UAS) Licence and Spectrum licence for wireless local loop in the 900MHz and 1800MHz band.

According to the notice, these licences which expired on 31st of August, 2021, have now been renewed for a further ten-year period, starting from 1st of September, 2021. In addition, the regulator (NCC) acknowledged the receipt of the sum of N7.16 billion for the spectrum licence, and N374.6 million for the UAS licence in settlement of their invoices for the period 1st of September 2021 to 31 August, 2031.

The spectrum underpins MTN’s data network and telecom coverage in Africa’s biggest economy.

What they are saying:

Commenting on the renewals, the CEO of MTN Nigeria, Karl Toriola said: ‘’Renewing our licences for another ten years is very important to our business and enables us to continue to provide services to ensure the benefits of a modern connected life for our prople. MTN Nigeria is delighted with its strong partnership with the NCC and looks forward to working closely with the Commission, and the Ministry of Communications and Digital Economy, to accelerate the growth of Nigeria’s digital economy.’’

Back story: Recall that the NCC had earlier in August denied renewing the operating licence of MTN Nigeria. While it admitted that the telecommunications giant had applied for a renewal of its licence, it stated that the application is still undergoing required regulatory processes as at then.

MTN Nigeria denies owing FG tax arrears.

MTN Nigeria Communications Plc has denied being indebted to the Federal Government of Nigeria in respect of outstanding taxes.

In a statement signed by the company’s secretary, Uto Ukpanah, and made available on the website of the Nigerian Exchange Limited (NGX), the telecommunications giants noted that it had furnished tax authorities with evidences to demonstrate full compliance with all extant and regulatory obligations. The teleco giant further reiterated its commitments to abiding by applicable laws and  contributing to the social and economic development of Nigeria.

Recall that the office of the Accountant General of the Federation (AGF) had allegedly accused MTN Nigeria Plc of owing taxes from 2007 to 2017. Consequently, a $2billion tax demand was instituted against the firm. However, after two years of allegation, the Attorney-General of the Federation and Minister of Justice, Abubakar Malami on January 8, 2020, withdrew the $2 billion tax demand and transferred the matter to the Federal Inland Revenue Service (FIRS) and the Nigerian Customs Service (NCS) for resolution.

Commenting on the recent development, the telecommunications firm in the press release said: ‘’MTN Nigeria Communications Plc (MTN Nigeria or the Company) wishes to clarify erroneous reports in the media alleging the company is indebted to the Federal Government of Nigeria in respect of outstanding taxes.

‘’It may be recalled that in a letter dated 8 January 2020, the Office of the Attorney General of the Federation (OAGF) officially transferred the matter of MTN Nigeria’s alleged indebtedness to the Federal Inland Revenue Service (FIRS) and the Nigerian Customs Service (NCS) for resolution.

‘’As with previous request of a similar nature, MTN Nigeria has been happy to cooperate with the authorities, providing evidence to demonstrate full compliance with all extant tax and regulatory obligations and discussions are on-going in this regard.

‘’As recently as last year, the tax authorities commended MTN Nigeria for its prompt payment of dues. In addition, when asked earlier this year, the Company agreed to make advance tax payments ahead of established deadlines to support Government’s revenue drive. This was also the case in 2020, when in response to FIRS appeal to support Government MTN Nigeria made an early payment of its 2019 Companies Income Tax (CIT) of N46.9 billion. The Company did the same this year, between March 2021 and June 2021; making early payments of N95.5 billion for the 2020 CIT, which was due on 30 June 2021.’’

 

 

 

 

 

MTN Nigeria Plc grows half year profit by 49.5% N141.83 billion, approves interim dividend of N4.55/share

MTN Nigeria Plc released its unaudited financial results for the period ended June 30, 2021.

  • Revenue for the period was N791.3 billion. (+24% YoY)
  • Employee benefits totalled N19.05 billion. (-1.0% YoY)
  • An operating profit of N273.71 billion was recorded. (+33.8% YoY)
  • Profit after tax was N141.83 billion. (+49.5% YoY)
  • Net assets per share of N9.83 Vs N8.76 YoY.
  • Earnings per share of N6.97 Vs N4.66 YoY
  • The company share price of N164. (-3.0% YoY)
  • An Interim dividend of N4.55 per share was approved by the board.

See link to results.

 

GCR Upgrades MTN Nigeria Long Term Issuer Rating to AAA.

GCR Ratings (GCR) has upgraded the national scale long-term Issuer rating of MTN Nigeria Communications Plc to AAA and affirmed the national scale short-term Issuer rating of A1+, with a stable outlook.

This is according to a notice made available on the website of the Nigerian Exchange Group Limited (NGX) and seen by Nairametrics.

According to the notice, the recently concluded N110 billion series 1 unsecured bond issued by the telecommunications giant, was also upgraded with a nation scale long-term rating of AAA and a stable outlook.

It is imperative to note that the rating is the highest possible long-term and short-term ratings on GCR’s national rating scale, and MTN Nigeria is the first mobile network operator in Africa to be accorded such ratings by GCR.

According to GCR: ‘’ The ratings accorded to MTN Nigeria Communications Plc reflects its very strong competitive position as the leading provider of telecommunication services in Nigeria, as well as its strong earnings and cash flow which has supported a robust financial profile.’’

GCR further noted that MTN Nigeria has progressively sustained its earnings, with a five-year CAGR of 14.1% to FY20. Similarly, Its EBITDA margin remained strong around 50%-53% in the recent period, trending above international peers.

In light of this, GCR expects MTN Nigeria to continue to maintain strong revenue growth given its growing infrastructure, and Nigeria’s favourable demographic. On the other hand, GCR expressed concerns over the continuous devaluation of the Naira, noting that it is capable of increasing pressure on the unhedged operating and capital costs, as a large component of spending relates to US Dollar denominated imports, impacting the earnings margins.

Meanwhile, the CEO of MTN Nigeria, Karl Toriola opined that the recent ratings demonstrate the resilience of the telecommunications giant, he said: ‘’We are delighted with the outcome of the GCR rating. This demonstrates the resilience of our business and positions MTN Nigeria as the benchmark of reference for the information and communications technology sector for long-dated, fixed-term instruments. As we continue to invest in our network and strengthen our risk management processes, we remain focused on sustaining and accelerating growth in line with our Ambition 2025 strategy.’’

MTN Nigeria Plc approves FY 2020 dividend pay-out of N120.09 billion to shareholders.

The Board of Directors of MTN Nigeria Plc has approved the payment of N120.09 billion to the shareholders of the company who currently hold the 20,354,513,050 fully paid ordinary shares of the company.

This disclosure is part of the resolutions passed at the recently concluded Annual General Meeting of the company, held on the 7th of June, 2021.

According to the notice: ‘’A dividend payment in the total sum of N120,091,626,955.00 (One hundred and twenty billion ninety one million six hundred and twenty six thousand nine hundred and ninety five Naira) which translates to N5.90Kobo per every 2 kobo ordinary share; to shareholders whose names appear in the Company’s Register of Members at the close of business on Tuesday, May 4, 2021 (bringing total dividend for the year ended 31st December 2020 to N9.40), subject to withholding tax, be and is hereby approved.

Other resolutions reached at the Annual General Meeting include;

  • The appointment of Ms. Tsholofelo Molefe, Dr. Ernest Ndukwe, Messrs. Rhidwaan Gasant, Ralph Mupita and Jens Schulte-Bockum into the company’s Board were reviewed and approved.
  • The remuneration of the Board Chairman for the year ending 31st Decemeber 2021, was fixed at N28,920,000/
  • Non-Executive Directors fees for the year ending were pegged at N16,472,000.
  • The firm was authorized to establish an Equity Shelf Programme for the purpose of facilitating offers for the sale of shares in the company by MTN International (Mauritius)

What you should know:

  • MTN Nigeria Plc had earlier declared an all-time highest revenue  by a listed Nigerian entity for FY 2020

For more information about the disclosure, click HERE.

 

MTN Nigeria set to hold Annual General Meeting on 7th of June.

The Board of MTN Nigeria Communications Plc has announced that it will host its Annual General Meeting on the 7th of June, 2021.

This is according to a notification signed by the company’s secretary, Uto Ukpanah and seen by Nairametrics. Sequel to this, the following issues will be discussed;

  • The audited financial statement for the year ended December 31, 2020, and the report of its Directors, auditor, and the audit committee.
  • The firm’s proposed dividend will be considered and officially declared.
  • Board appointments will also be considered and ratified.
  • To fix remuneration of managers and Directors in FY 2021.
  • To elect shareholders’ representatives of the statutory audit committee.

What you should know:

  • MTN Nigeria Plc had recently posted a profit after tax of N73.7 billion in Q1 2021, indicating a surge of about 43%.
  • In line with CAC guidelines, attendance at the AGM will be by proxy. Sequel to this, a list comprising of six (6) representatives authorized to represent shareholders, have been made available.

For more information about the AGM, click HERE.

FMDQ admits Stanbic, MTN, Nigerian Breweries, Coronation Merchant Bank and 4 other CPs.

FMDQ Securities Exchange has announced the approval for the quotation of Stanbic IBTC, MTN, Nigeria Breweries Plc and 5 other Commercial Papers.

According to series of verified disclosures from the FMDQ  Exchange, the comprehensive list of Commercial Papers recently approved for quotation on its platform are;

  • Mixta Real Estate N1.09 billion Series 34 CP under its N20 billion CP programme.
  • Stanbic IBTC Bank $8.31 million Series 2 CP under its N100 billion Multi-Currency CP Issuance Programme.
  • Nigerian Breweries N1.05 billion Series 12, N0.94 billion Series 13 and N2.67 billion Series 14 CPs under its N100 billion CP Issuance Programme.
  • Parthian Partners Limited N10 billion Series 1 (Tranche A), N5.26 billion Series 1 (Tranche B) and N4.74billion Series 2 CPs under its N20 billion CP Issuance Programme.
  • TrustBanc Holdings Limited N10 billion Commercial Paper
  • Eunisell Limited N10 billion Commercial Paper
  • Coronation Merchant Bank Limited N0.71 billion Series 13, N14.13 billion Series 14, N1.41 billion Series 15 and N20.19 billion Series 16 CPs under its N100 billion CP Programme.
  • MTN Nigeria Communications Plc N19.77 billion Series 3 and N53.74 billion Series 4 CPs under its N200 billion CP Issuance Programme.

It is pertinent to note that the admission will afford the aforementioned firms the opportunity to not only raise short term capital to support their business operations, but to also enjoy value-added benefits like visibility, transparency and liquidity that comes with being quoted on the FMDQ Exchange.

FMDQ approves quotation of MTN’s Commercial Paper worth N73.5 billion.

FMDQ OTC Securities Exchange has approved the quotation of MTN Nigeria series III and series IV Commercial paper worth a combined total of N73.51 billion.

This is according to a notification by the Securities Exchange which reads: ‘FMDQ Exchange is pleased to announce the approval for the quotation of the MTN Nigeria Communications PLC ₦19.77bn Series 3 and ₦53.74bn Series 4 CPs under its ₦200.00bn CP Issuance Programme on its platform.’’

According to the notice, the recent disclosure is part of a N200 billion CP Issuance programme earlier announced by the firm. Recall that the telecommunications giants had disclosed that it got an approval from FMDQ to raise its initial CP offering from N100 billion to N200 billion, sequel to the success recorded in its N100 billion inaugural Series I and Series II CP Issuances in June 2020, which have been redeemed.

The proceeds from the CP will be used to meet working capital requirements and for general corporate purposes.

What you should know:

  • The series III and series IV CP cleared at a discount rate of 6.7652% and 7.5546% respectively.
  • The book build for the series III and series IV CP Issuances commenced on 11th of March, 2021 and closed on 19th of March, 2021.

MTN Nigeria Plc grows profit by 43% to N73.7 billion in Q1 2021.

MTN Nigeria Communications Plc released its unaudited results for the first quarter of the year (Q1, 2021).

  • Revenue for the period was N385.3 billion.(+17.06% YoY)
  • Direct networking operating costs of N93.9 billion. (+30.2% YoY)
  • Employees benefit was N9.32 billion. (+0.5% YoY)
  • Profit for the period was N73.7 billion. (+42.5% YoY)
  • Net assets per share for the period was N12.4
  • Earnings per share of N3.6 Vs N2.5 YoY

See link to results.

MTN Nigeria raises N73.5 billion from CP Issuance to finance operations.

MTN Nigeria Plc has raised a total of N73.5 billion through its Series III and Series IV CP Issuance Programme, in a bid to meet its working capital requirements and for general corporate purposes.

This is according to a disclosure issued by the telecommunication giants and signed by its secretary, Uto Ukpanah, as seen by Nairametrics.

The company revealed that as part of its strategy in diversifying its financing sources, it obtained the approval of FMDQ Securities Exchange in November 2020 to increase its CP programme from N100 billion to N200 billion. This is sequel to the success recorded in its N100 billion inaugural Series I and Series II CP Issuances in June 2020, which have been redeemed.

On the other hand, the telecommunications giant also revealed that the company has obtained the approval of the Securities and Exchange Commission to launch a Bond Issuance Programme. Sequel to this, the company will issue a 7-Year Series I fixed rate bond under a debut N200 billion bond issuance programme.

What you should know:

  • The book build for the series III and series IV CP Issuances commenced on 11th of March, 2021 and closed on 19th of March, 2021.
  • The series III and series IV CP cleared at a discount rate of 6.7652% and 7.5546% respectively.
  • A total of N19, 765,447,000 was raised through series III CP Issuance, while series IV CP Issuance generated a total of N53, 742,807,000.
  • Collectively a total of N73, 508,254,000 was raised through the issuance of both series- series III and series IV.

For more information about the disclosure, click HERE.