Africa’s largest mobile operator, MTN, said it had gained market share in Nigeria, as it expands its 4G coverage to almost half of the population of the country.
MTN Nigeria added 4.2-million subscribers during the quarter, growth of 6.5%, with 4G coverage rising to 48% of the country’s population, from 44% at the end of December.
Nigeria is MTN’s most profitable market, accounting for about one-third of its annual profit, but has also been one of the most problematic after clashes with authorities over taxes and regulatory breaches.
Data revenue, making up 22.6% of service revenue, continued to accelerate, with growth of 59.2% year on year, the group said, driven by the increased 4G coverage. The group said it had grown market share during the period.
Profit before tax increased by 8.9% to 76.3-billion naira (R3.6bn) during the quarter, year on year, while service revenue rose 16.7%.
“We recorded a solid performance in the first quarter, building on the growth momentum we achieved in the fourth quarter of 2019,” said MTN Nigeria CEO Ferdi Moolman.
The group said it was too soon to quantify the effect of the Covid-19 outbreak, but there was a decrease in voice traffic and an increase in data traffic towards the end of March.
There was a high degree of uncertainty regarding the length of disruption to business activity from Covid-19, while exchange rates and the oil price remain volatile.