Investors who subscribed to the recently-concluded public offer by MTN Nigeria Communications (MTN Nigeria) will receive about N5.67 billion as cash dividends in their first return on investment.
Regulatory filing and reports analysed yesterday by The Nation indicated a dividend yield of 5.07 per cent as return on investment for the emerging shareholders, a considerable return for investors who had bought into the company last December.
The Board of Directors of MTN Nigeria has recommended a final dividend of N8.57 per share for the year ended December 31, 2021, bringing the total dividend for the year to N13.12 per share.
The company has indicated that shareholders on the register of members as at April 6, 2022 will partake in the final dividend, including all allotted subscribers last December public offer. The dividends will be credited to shareholders’ bank accounts by April 28, 2022.
MTN Nigeria allotted a total of 661.25 million shares to new shareholders under its last December public offer. The offer, with initial size of N97.18 billion, recorded a subscription of N135.53 billion, representing an oversubscription of 39.5 per cent.
The dividend recommendation highlighted the impressive performance of the telecommunication company, which recorded 45.5 per cent growth in net profit in 2021.
Key extracts of the audited report and accounts of MTN Nigeria for the year ended December 31, 2021 showed that gross revenue increased by 23.3 per cent to N1.7 trillion. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 27.9 per cent to N877.1 billion with EBITDA margin increasing by 2.1 percentage points to 53.0 per cent. Profit after tax rose by 45.5 per cent to N298.7 billion, implying earnings per share of N14.67. The underlying business fundamentals showed that while mobile subscribers decreased by 8.0 million to 68.5 million, active data users increased by 1.7 million to 34.3 million.
Also, active fintech subscribers rose by 4.8 million to 9.4 million.
Chief Executive Officer, MTN Nigeria Communications (MTN Nigeria) Plc, Karl Toriola said the company is focused on building on the platform of success laid in 2021.
According to him, the return to positive subscriber net additions in fourth quarter 2021 established a solid basis for growth in 2022 as the group ramps up gross connections through its rural connectivity drive and CVM initiatives. As part of its rural connectivity programme, MTN Nigeria plans to connect approximately 2,000 new communities in 2022.
He noted that in line with the accelerated growth being seen now, […]