Photograph — abokiFX News

A report released by MTN Nigeria Communications Plc (MTN) shows a 12 percent increase in revenue due to the increase of data usage during the coronavirus lockdown crisis. The company recorded an increase of N638.1 billion in H1 2020, from N566.9 billion recorded the same period in 2019.

Data made available on the Nigerian Communications Commission (NCC) website shows that the telecommunication company has a 42.54 percent market share of internet subscribers, accounting for the 12 percent revenue surge. The revenue surge is due to the increase in Voice, Data, SMS, Interconnect and Roaming, Handset and Accessories, Digital, Value Added Service, and other revenues. Apart from SMS charges, revenue from the other seven segments increased in H1 2020 compared with the previous period last year.

Revenue generated from data alone increased from N56.7 billion to N79.9 billion, as the number of port-out subscribers almost doubled port-in subscribers in the period under consideration. This is as a result of lockdown restrictions issued by the government to curb the spread of coronavirus.

In this light, business activities, meetings, weddings, social interactions were all conducted online as people were left with no choice but to utilize the use of the internet with social distancing rules in place. Consequently, people consumed more data compared with the pre-COVID-19 period.

However, MTN recorded a decline in its earnings Per Share (EPS) by 4.70 percent in H1 2020 from N4.89 to N4.66 compared with the same period last year.  It also had a 4.68 percent decline in distributable profit to N94.88 billion in H1 2020, relative to N99.54 billion contributed to this decline in H1 2019.

Currently, MTN’s shares trades at N129 per unit on the Nigerian Stock Exchange (NSE). The highest price for a unit of share in 52 weeks was N132 and the lowest N90. A total of 51,885,740 units were sold in the last seven days’ trades. Shares outstanding is 20,354,513,050 units and its market capitalization is N2.63 trillion.

Airtel Africa Plc also recorded a share price of N380. The highest price for a unit of share in 52 weeks was N380 and the lowest N298.90. A total of 15,972 units were sold in the last seven days’ trades. Its outstanding shares are 3,758,151,504 units and its market capitalization is N1,428,097.57 trillion.

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