reports
- Chris Hoare
MTN (Buy, TP: ZAR130, +42%) MTN Nigeria – Q1 24 Quick Take: Strong to...
MTN Nigeria has reported a mixed set of results. Top line was quite strong, but EBITDA and the bottom line came in under pressure (as expected), driven mainly by the Naira devaluation in Q1. The company is cutting capex for this year.
- Chris Hoare
MTNN Plc 2023FY Earnings Note - Foreign Exchange Losses Bite Deep
Strong Revenue Growth Offset by Higher Costs In its recently released 2023 full year (FY) financial result, MTN Nigeria Communications Plc (MTNN) observed higher revenue figures on a Year- on-Year (YoY) basis, recording a 22.69% YoY growth to NGN2.47trn in 2023FY. Topline growth was underpinned by a robust growth in Data Revenue (+39.90% YoY to NGN1.07trn), followed by an increase in Other Revenue (+16.01% YoY to NGN445.14bn) which consists of ancillary income streams such as rental income, dig...
- Chris Hoare
African Towers and Telcos IHS offers improved terms to MTN Nigeria re...
Press reports that IHS has offered improved commercial terms to MTN Nigeria regarding the 2,500 towers previously lost to ATC. This suggests that as we previously wrote there must have been a material difference in commercial terms, with the corporate governance issue secondary. Increasing evidence of competition in contract renewals is negative for Towers and positive Telcos in EM.
- Chris Hoare
Nigerian Telcos Solid underlying top line and KPIs, mixed EBITDA; Q3 ...
Market service revenue growth slightly slowed but remained robust in Q3. Both MTN and AAF managed to grow underlying service revenue just above 20% YoY, which is a solid performance given the current macro-economic pressures and the absence of price increases.
- Chris Hoare
- Chris Hoare
- Chris Hoare
- David Lopes
Nigerian Telcos Faster quarter, strong underlying trends but larger F...
Underlying performance remained strong for both MTN and AAF which saw an improvement in top line and EBITDA trends. However, macro challenges remain and the devaluation of Naira will have a greater impact on headline numbers next quarter.
- Chris Hoare
MTN (Buy, TP: ZAR250, +80%) MTN Nigeria – Q1 23: Good Q2 numbers; H2 ...
MTN Nigeria has reported a good set of Q2 numbers with Service Revenue and EBITDA trends accelerating and relatively good subscriber net adds. MT guidance has been reiterated. H2 23 is expected to be tougher for EBITDA and capex because of the Naira devaluation.
- Chris Hoare
Nigerian Telcos Our thoughts on the recent macro developments in Nige...
Amongst the reforms announced by Nigeria’s president Bola Tinubu in its inaugural speech at the end of May, two could be key for the Nigerian Telcos in our view. The first one is the removal of the fuel subsidy, the second one is the change in the FX policy. The USD:NGN has been volatile in the last few days, as the currency controls that were in place to prop up the Naira against the USD are being removed.
- Chris Hoare
- David Lopes
- Chris Hoare
AAF (Buy, TP: 305p, +163%) MTN (Buy, TP ZAR250, +121%) IHS Towers (Buy...
According to Airtel Africa’s CEO, the diesel price in Nigeria has fallen 20% since the end of March. Additionally, the Nigerian press is reporting that after years of delays the commissioning of the Dangote Refinery is imminent. As a result, we see headwinds turning into tailwinds for the Nigerian Telcos and Towers and especially AAF, and medium term for IHS. This note runs through the potential for earnings upgrades across the space.
- Chris Hoare
- Chris Hoare
- David Lopes
Nigerian Telcos Improving top line driven by voice recovery; stay con...
Both MTN and AAF saw improvements in top line growth, driven by the recovery in voice in Q4. MTN slightly outperformed AAF in service revenue but AAF outperformed on the EBITDA side and with low capex intensity in Q4 AAF posted strong OpFCF margins.
- Chris Hoare
MTN (Buy, TP: ZAR 250, +67%) MTN Nigeria – Q4 22: Strong end to the y...
MTN Nigeria reported a strong set of Q4 results, with the business back to strong growth after the NIN-SIM related issues. Fintech revenue is not yet contributing meaningfully, suggesting revenue may accelerate further in 2023, although this may come with some margin pressure near term.
- Chris Hoare
- David Lopes
New Street: Nigerian Telcos Q3 22 review: Support from voice recovery...
Both MTN and AAF saw improvements in top line growth as more customers are reactivated for outgoing voice calls. AAF was also supported by an accelerating data revenue growth. Similar to last quarter, MTN outperformed on EBITDA as AAF remained impacted by fuel prices. We remain confident in our upgraded guidance and are Buyers of MTN and AAF at ZAR 250 and GBp 305 respectively.
- Chris Hoare
- Chris Hoare
- Chris Hoare
New Street: Nigerian Telcos Q2 CY22 review: Slower quarter; better pe...
Nigerian telcos reported a slower Q2, impacted by slower data usage growth while voice remained pressured by the NIN-SIM regulation albeit improving. MTN and AAF trended similarly in terms of top line. However, MTN performed better at the EBITDA level, managing the higher fuel prices better than AAF.
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