MTN, Airtel Rake in N3.67tn as Nigerians' Demand for Data, Airtime Soars in 6 Months
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the Stock Market.
MTN Nigeria Communications Plc and Airtel Nigeria generated a combined total of approximately N3.67tn from their voice and data services in the first half of 2024, based on an analysis of their financial reports.
MTN, the largest telecom provider in the country with nearly 80 million subscribers, recorded total revenue of N1.27tn for the first six months of the year, largely driven by an increase in data service usage.
Source: UGC
Data services alone accounted for N726.6bn of this revenue, marking a 55% rise from N469.7bn in the corresponding period of 2023.
Revenue from voice services also saw an upward trend, reaching N541.3bn, compared to N474.1bn the previous year.
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MTN, which has been operating in Nigeria for 20 years, attributed this growth to improvements in service delivery and the rising demand for data.
The company’s pricing adjustments introduced in the final quarter of 2023 also contributed to the revenue boost.
Airtel, which serves over 60 million subscribers, reported $229 million in revenue for the quarter ending June 30, 2024. This consisted of $112 million from voice services and $117 million from data services.
While voice revenue saw a sharp drop of 55.8% from $254 million in the same period last year, it rose by 21.6% in constant currency terms, according to the company's financial report.
Data revenue also declined 48.6% year over year, down from $228 million, though constant currency growth showed a solid 41.3%, reflecting increased demand for internet services.
For the full fiscal year ending March 31, 2024, Airtel recorded $711 million in voice revenue and $654 million from data services, bringing total earnings to $1.594 billion across both periods.
Converting Airtel Nigeria’s total revenue into naira, using an exchange rate of N1500 to the dollar, shows that the company generated N2.4 trillion in six months.
Combined, Airtel and MTN brought in approximately N3.67 trillion from voice and data services over the same period, with Airtel accounting for N2.4 trillion and MTN N1.27 trillion.
Both telecom giants are capitalizing on the increasing demand for digital services, driven by Nigeria’s expanding digital economy. However, they continue to grapple with challenges such as rising operational costs due to the weakening naira against the dollar.
MTN Nigeria and Airtel Africa, both listed on the Nigerian Stock Exchange, allocate a substantial part of their earnings toward diesel expenses.
Industry experts estimate that telecom operators use more than 50 million litres of diesel each month to power their infrastructure.
As diesel costs continue to escalate, telecom companies are increasingly turning to renewable energy alternatives like solar power, wind energy, and lithium battery storage to reduce reliance on fossil fuels and cut operational expenses.
Amid these challenges, telecom operators, represented by the Association of Licensed Telecom Companies of Nigeria (ALTON) and the Association of Telecom Companies of Nigeria (ATCON) have continued to call for tariff hikes.
It would be recalled earlier calls for tariff increase had been met with resistance from Nigerians through the National Association of Telecommunications Subscribers (NATCOMS).
Speaking on the feat achieved by the telcos, Uzoma Okeke, a communication expert, told Legit.ng that the need to communicate overrides economic challenges.
He said:
"It's remarkable how telecom companies in Nigeria, like MTN and Airtel, continue to generate huge revenues despite the country’s economic challenges. With N3.67tn earned in just six months from data and voice services, it’s clear that the demand for connectivity remains strong, driven by the digital economy's growth.
"However, this success comes at a time when businesses face rising operational costs, including the impact of the weakening naira and surging diesel prices."
He added that the pivot towards renewable energy is a smart move to cut costs, but the ongoing economic challenges make sustaining growth a balancing act for these companies.
NCC reels out new guidelines to telcos
Meanwhile, Legit.ng earlier reported that the Nigerian Communications Commission (NCC) introduced fresh directives for telecom companies to enhance customer experiences and relationships.
These new guidelines are designed to adhere to Section 57 of the NCC Act, which permits stakeholders to provide input on policy matters.
According to the NCC's official documentation, the regulator has requested telecom firms to ensure that customers are attended to within 30 minutes of their arrival at any of the company's service centres throughout Nigeria.
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Source: Legit.ng
