MTN Nigeria Communications Plc recorded strong performance in the 2020 financial year, despite the challenging operating conditions during the year caused by the COVID-19 pandemic.
In the year, the largest mobile telecommunications operator grew its earnings before interest, tax, depreciation, and amortisation (EBITDA) by 9.7 per cent to N685.7 billion, while the pre-tax profit rose by 2.6 per cent to N298.9 billion and profit after tax rose by 0.9 per cent to N205.2 billion.
Its mobile subscribers increased by 12.2 million to 76.5 million, while its active data users grew by 7.4 million to 32.6 million.
To reward its shareholders, the board proposed N5.90 as a final dividend, and the cash reward was paid on Tuesday, June 8, 2021, to shareholders whose names appear in the company’s register of members at the close of business on Tuesday, May 4, 2021.
Earlier in the fiscal year, the firm, which joined the Nigerian Exchange (NGX) Limited in May 2019, had paid an interim dividend of N3.50, bringing the total dividend for the year to N9.40
This reward excited the shareholders present at the company’s Annual General Meeting (AGM) held on June 7, 2021, at MTN Plaza, Ikoyi. They commended MTN Nigeria for the profit margin despite the COVID-19 pandemic that characterised 2020.
Speaking with investors at the meeting, Dr. Ernest Ndukwe, chairman of MTN Nigeria, attributed the strong performance of the telco to the cost optimisation strategies of the board and management.
“Despite the challenging operating conditions during the year, I am happy to report that our company recorded improved performance across all key metrics, creating the shareholder value achieved.
“This performance demonstrates the success of cost optimisation measures initiated during the year, the strong operational execution of our people and resilience in our business,” Mr Ndukwe, a former executive vice chairman of the Nigerian Communications Commission (NCC), said.
“Following from our good operating results and in line with our dividend policy, the board has recommended a final dividend of N5.90 kobo per share to be paid out of distributable net income.
“This brings the total dividend for the year to N9.40 kobo per share, representing an increase of 18.7 per cent,” he added.
On his part, Mr Karl Toriola, chief executive officer of MTN Nigeria, stated that, “It’s a great starting point and we will continue to be dynamic and agile to deliver value for the future for our stakeholders, whilst aligning our priorities with national interests.”
