MTN NIGERIA COMMUNICATIONS : QUARTER 1 - FINANCIAL STATEMENT FOR 2022

MTN Nigeria Communications Plc

Unaudited condensed consolidated and separate financial statements for the three months period ended 31 March 2022

Contents

Page
Financial highlights	2
Condensed consolidated and separate statement of profit or loss	3
Condensed consolidated and separate statement of other comprehensive income	4
Condensed consolidated and separate statement of financial position	5
Condensed consolidated and separate statement of changes in equity	6
Condensed consolidated and separate statement of cash flows	7
Notes to the condensed consolidated and separate financial statements	8 - 37
1

Financial highlights

3 Months	3 Months	% Change
ended 31	ended 31
In millions of Nigerian Naira	Notes	March 2022	March 2021
Revenue	4	470,984	385,318	22.23
Operating profit	179,326	133,107	34.72
Profit before taxation	143,588	102,989	39.42
Profit for the period	96,820	73,748	31.28
Basic/ diluted earnings per share (N)	32	4.76	3.62	31.28
As at 31	As at 31	% Change
March 2022	December
2021
Share capital	407	407	-
Total equity	356,984	264,981	34.72
Net assets per share (N)	17.54	13.02	34.72
Stock exchange information
Market price per share as at period end (N)	214.00	197.00	8.63
Market capitalisation as at period end (N'million)	4,355,970	4,009,935	8.63
Number of shares issued and fully paid as at period end (in millions)	20,355	20,355	-
The financial highlights reflect Group numbers only.

Condensed consolidated and separate statement of profit or loss

3 Months
ended 31
In millions of Nigerian Naira	Notes	March 2022	March 2021
Revenue	4	470,984	385,318
Direct network operating costs	9	(107,275)	(92,347)
Value added services	(5,712)	(4,699)
Costs of starter packs, handsets and accessories.	(4,904)	(269)
Interconnect costs	(35,539)	(31,176)
Roaming costs	(1,215)	(851)
Transmission costs	(2,007)	(1,989)
Discounts and commissions	(21,790)	(18,914)
Advertisements, sponsorships and sales promotions	(5,951)	(3,609)
Employee costs	7	(10,997)	(9,316)
Depreciation of property and equipment	11	(40,979)	(32,224)
Depreciation of right of use assets	12	(24,566)	(20,717)
Amortisation of intangible assets	13	(12,277)	(18,502)
Other operating expenses	8	(18,446)	(17,598)
Operating profit	179,326	133,107
Finance income	5	4,587	1,227
Finance costs	6	(40,325)	(31,345)
Profit before taxation	143,588	102,989
Taxation	10	(46,768)	(29,241)
Profit for the period	96,820	73,748
Earnings per share
Per share information
Earnings per share- basic/diluted	32	4.76	3.62

Group
3 Months	3 Months	3 Months
ended 31	ended 31	ended 31
March 2022	March 2021
470,691	385,241
(107,275)	(92,347)
(5,712)	(4,699)
(4,904)	(269)
(35,539)	(31,176)
(1,215)	(851)
(2,007)	(1,989)
(21,324)	(18,733)
(5,726)	(3,457)
(10,782)	(9,131)
(40,979)	(32,224)
(24,566)	(20,717)
(10,947)	(17,172)
(17,250)	(17,383)
182,465	135,093
4,543	1,227
(40,325)	(31,345)
146,683	104,975
(47,697)	(29,836)
98,986	75,139
4.86	3.69

Company

Condensed consolidated and separate statement of other comprehensive income

3 Months
ended 31
In millions of Nigerian Naira	March 2022	March 2021
Profit for the period	96,820	73,748
Items that may be reclassified to profit or loss
Transfer of fair value reserve of investments designated at FVOCI*	52	-
Other comprehensive income for the period net of taxation	52	-
Total comprehensive income for the period	96,872	73,748
Attributable to:
Owners of the parent	96,872	73,748
96,872	73,748

Group
3 Months	3 Months	3 Months
ended 31	ended 31	ended 31
March 2022	March 2021
98,986	75,139
52	-
52	-
99,038	75,139
99,038	75,139
99,038	75,139

Company

*Financial assets classified as financial assets at fair value through other comprehensive income are Federal Government treasury bills investments which are exempted from company income tax.

The accompanying notes are an integral part of these condensed consolidated financial statements.