MTN prepared for Nigerian listing

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MTN prepared for Nigerian listing

Published Date: 2019-05-10 | Source: Stephen Gunnion | Author: Stephen Gunnion

MTN prepared for Nigerian listing

The network operator will list its Nigerian business this month after it received the approval of the country's Securities and Exchange Commission.

MTN is on track to float its Nigerian business on the Nigerian Stock Exchange this month after it completed the conversion to a public company and received approval from the country's Securities and Exchange for the listing.

The group said the successful listing of Jumia Technologies on the New York Stock Exchange last month also provided a market value of $560 million to its 18.9% stake in the Nigerian e-commerce joint venture.

In a quarterly update, the network operator said its Nigerian, Ghanaian and SA businesses did well in the three months to end-March, helping to grow group services revenue by 10% from a year earlier. This was supported by expansion in voice, data and fintech revenue. Nigeria led the increase, growing service revenue by 13.4%, with service revenue in SA increasing by a more muted 4.6%.

The group grew subscribers by 4 million from December to 236.6 million, with active data subscribers rising by 2.6 million to 81.3 million and 1.2 million more active MTN Mobile Money customers. Digital revenue fell by 45.4%, impacted by the work that continues around optimising its value-added services business.

Prepaid subscribers in SA declined by 4.9% to 24.1 million, while postpaid subscribers rose 1.2% to 5.9 million. In Nigeria, total subscribers rose 3.6% to 60.3 million.

Its West and Central Africa region was negatively impacted by the underperformance of MTN Ivory Coast, mainly as a result of competitive pressures. However, Ghana, Uganda and Rwanda led a strong performance in its Southern and East Africa division. It said the Middle East and North Africa segment performed well, growing service revenue by 22.6%.

The group said a court case over claims that it underpaid $2 billion in duties and taxes was adjourned until next month after an objection lodged by Nigeria's attorney general was rejected.

Its shares closed 2.9% lower at R100.42 yesterday.

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