In its recently released FY 2023 results, MTN Nigeria sustained its Revenue growth momentum, reporting a 22.7% y/y growth in Revenue to N2.47tn from N2.01tn in FY 2022. On a q/q basis, Revenue increased by 13.3% to N695.90bn in Q4 2023 from N614.21bn in Q3 2023. The growth in Service Revenue (up 22.4% y/y) remained the major driver of the rise in Total Revenue.
Data Revenue growth remained strong in 2023, increasing by 39.8% y/y to N1.07tn from N764.82bn in 2022. The growth was supported by the revamp of the company’s data bundle offerings, an increase in the penetration of smartphones, and investments made to expand coverage and capacity and enhance customer experience. The company noted that its active data users increased by 12.7% y/y to 44.6 million for FY 2023. It also stated that its 4G network now covers 81.5% of the population, up from 79.1% in December 2022, and its 5G network covers 11.3% of the population. Smartphone penetration rose to 55.6% (up 3.1ppt y/y), underpinning data usage (GB per user) growth of 29.1% to 8.6GB from 5.74GB. As a result, the company recorded a 44.9% growth in data traffic, with the 4G network accounting for 81.8% of the total traffic.
Voice Revenue also grew by 9.7% y/y to N1.14tn in FY 2023. The company attributed the growth to the increase in its mobile subscriber base and increased usage driven by the company’s customer value management initiatives and revamped voice propositions. The firm recorded a 5.3% y/y increase in its subscriber base, adding 4m subscribers to increase the mobile subscribers to 79.7m for FY 2023. Likewise, we note a significant improvement in Fintech Revenue, up 2.4% y/y to N86.43bn, and Digital Revenue, up 69.9% y/y to N37.46bn in FY 2023.
