Below is a detailed overview of the financial performance of MTN Nigeria Communications Plc during the third quarter of 2023.
Data ReveData Revenue Supports Revenue Growth
In its recently released Q3:2023 financial result, MTN Nigeria Communications Plc (MTNN) noted increased revenue, exceeding its growth from a year ago. Topline grew by 21.76% YoY to NGN1.77trn in Q3:2023 (vs. 20.71% YoY in Q3:2022). This improvement is underpinned by a modest expansion in Voice Revenue (11.80% YoY to NGN700.63bn), strong Data Revenue (36.25% YoY NGN748.30bn) and an uptick in Other Revenues (15.61% YoY to NGN324.02bn). Despite the upsurge in revenue, higher operating costs limited the pass-through to EBIT.
Data Revenue Leads the Pack, Shores Resilient Growth
In Q3:2023, data revenue was the largest contributor to MTNN’s overall revenue, constituting 42.21% of its overall sales, compared to 39.52% of voice revenue.
After considering the factors outlined, we maintain our bullish stance on MTN Nigeria Communications Plc. and retain a “STRONG BUY” recommendation, with a revised target price of NGN326.50 (36.04% upside potential as of November 14th, 2023).
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