•Amidst strong performance, FX issues remain
Data consumption by Nigerians boosted mobile network operators’ earnings in the last three months ending September 30, 2023.

Specifically, in the financial result for the third quarter ended September 2023, while MTN recorded N279.5 billion (38.9 per cent), Airtel earned N123.7 billion ($157 million) from data subscriptions, representing a 29.3 per cent growth in data revenue for the company.

Holistically, the earnings mean the two players raked in N403.2 billion and on the average, there is 34.1 per cent rise in their combined earnings for the period under review.

Speaking on the surge in data consumption and earnings, the Chief Executive Officer of MTN, Karl Toriola, noted that the increase in data usage was supported by the revamp of MTN data bundle offerings, an increase in the penetration of smartphones, and investments in its network to expand coverage and capacity and enhance customer experience.

“Our 4G network now covers 80.5 per cent of the population, up from 79.1 per cent in December 2022. Data usage (GB per user) grew by 29.1 per cent to 8.6GB, and the number of smartphones on our network increased by 7.6 per cent, bringing smartphone penetration to 53.4 per cent, up. Consequently, we recorded a 46.3 per cent growth in data traffic, with the 4G network accounting for 83.7 per cent of the total traffic,” Toriola stated.

To the CEO of Airtel Africa, Segun Ogunsanya, the Nigerian arm saw a significant increase in data consumption during the review period.

“Airtel Nigeria’s data revenue grew by 29.3 per cent in constant currency, driven by data customer base growth of 17.4 per cent and data Average Revenue per User (ARPU) growth of 12.3 per cent.

“Our continued 4G network rollout has resulted in nearly 100 per cent of all our sites delivering 4G services. Furthermore, 233 5G sites are now operational. For the Q2 ’24 period, 4G customers accounted for 51.1 per cent of our total data customer base and contributed to 85.3 per cent of total data usage. Q2’24 4G data usage per customer reached 11.7 GB per month, an increase of 41.3 per cent (from 8.3 GB per customer per month in Q2’23),” he said.

MEANWHILE, the impact of foreign exchange crises in the country also impacted on their operations.

Toriola, in a trading update accompanying the statement, said, “The full impact of Naira devaluation and VAT on lease costs, exacerbated by ongoing inflationary pressures, is expected to crystalise in Q4. We, therefore, expect our EBITDA margin for FY 2023 to be in the range of 47-49 per cent. Capital intensity for FY 2023 is expected to be slightly above our medium-term target level of 18 per cent.

Ogunsanya, who said though the firm recorded a strong growth in the period under review, noted, “as reported in July 2023, our results for the first quarter were significantly impacted by the changes to the FX market in Nigeria, introduced by the Central Bank. Whilst the changes are required for the long-term benefit of the Nigerian economy, the immediate impact of the Naira devaluation continues to weigh on our reported financial performance in the period. Our focus remains to enhance long-term value by continuing to drive sustained and efficient growth.”