MTN: Nigerians Spent N74bn On Data In Three Months

Nigerians spent N74 billion purchasing MTN Nigeria's data within three months, the financial statement recently released by the network provider disclosed.

This was a significant growth compared to the N46.4 billion Nigerians spent on MTN's data between January to March last year.

Also, MTN Nigeria recorded growth in its Voice revenue, posting N194 billion for the three months period ended March 31, 2020. This is a climb when compared to the corresponding period in 2019 when the network provider grossed N182.4 billion.

The growth in MTN's data and voice revenue for Q1 2020, could have been jacked up by the lockdown, which forced many companies to initiate a work-from-home program and also compelled Nigerians to spend more time online and social media platforms, streaming entertainment contents.

MTN Nigeria is part of a sector - telecommunication - that has benefited from the coronavirus outbreak, with just the increase in VAT (from 5% to 7.5%) and oil price crash posing little threat to its revenues. Although, MTN Nigeria, in its financial statement seen by Allnews, said it experienced operational challenges and supply chain disruption, however, going by its Q1 revenue, the company was hardly scarred.

Although its SMS revenue dropped to N3.3 billion from N3.6 billion, MTN Nigeria's revenue peaked at N329 billion in Q1 2020, to N282 billion in the corresponding period of 2019. During the Q1 period this year, MTN Nigeria's mobile subscriber also grew by 4.2 million, taking its total mobile subscribers to 68.5 million.

Speaking on the result, MTN Nigeria's Chief Executive Officer, Ferdi Moolman, said, "We recorded a solid performance in the first quarter, building on the growth momentum we achieved in Q4 2019."

The growth in MTN Nigeria's voice and data revenue comes amidst calls that the network provider should offer its subscribers free data due to the negative impact of coronavirus on the finances and purchasing power of Nigerians. MTN Nigeria, however, offered its subscribers ten free SMS each day during the lockdown.