MTN NIGERIA COMMUNICATIONS : QUARTER 2 - FINANCIAL STATEMENT FOR 2022

MTN Nigeria Communications Plc

Unaudited condensed consolidated and separate financial statements

for the six months period ended 30 June 2022

MTN Nigeria Communications Plc

Unaudited condensed consolidated and separate financial statements for the six months period ended 30 June 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 - 38

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MTN Nigeria Communications Plc

Unaudited condensed consolidated and separate financial statements for the six months period ended 30 June 2022

Financial highlights

		6 months	6 months	% Change
		ended 30	ended 30
In millions of Nigerian Naira	Notes	June 2022	June 2021
Revenue	6	950,086	791,263	20.07
Operating profit		352,312	273,709	28.72
Profit before taxation		268,635	215,116	24.88
Profit for the period		181,629	141,827	28.06
Basic/ diluted earnings per share (N)	35	8.92	6.97	28.06
		As at 30	As at 31	% Change
		June 2022	Dec. 2021
Share capital		407	407	-
Total equity		269,535	264,981	1.72
Net assets per share (N)		13.24	13.02	1.72
Stock exchange information
Market price per share as at period end (N)		230.00	164.00	40.24
Market capitalisation as at period end (N'million)		4,681,650	3,338,220	40.24
Number of shares issued and fully paid as at period end (in millions)		20,355	20,355	-
The financial highlights reflect Group numbers only.

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MTN Nigeria Communications Plc

Unaudited condensed consolidated and separate financial statements for the six months period ended 30 June 2022

Condensed consolidated and separate statement of profit or loss

			Group				Company
		6 months	6 months	3 months	3 months	6 months	6 months	3 months	3 months
		ended 30	ended 30	ended 30	ended 30	ended 30	ended 30	ended 30	ended 30
In millions of Nigerian Naira	Notes	June 2022	June 2021	June 2022	June 2021	June 2022	June 2021	June 2022	June 2021
Revenue	6	950,086	791,263	479,103	405,947	949,637	790,793	478,947	405,554
Direct network operating costs	11	(215,810)	(192,429)	(108,534)	(98,558)	(215,810)	(192,429)	(108,534)	(98,558)
Value added services		(11,078)	(8,934)	(5,365)	(4,709)	(11,078)	(8,934)	(5,365)	(4,709)
Costs of starter packs, handsets and accessories.		(9,851)	(1,414)	(5,873)	(1,141)	(9,851)	(1,414)	(5,873)	(1,141)
Interconnect costs		(71,131)	(62,206)	(35,592)	(31,030)	(71,131)	(62,206)	(35,592)	(31,030)
Roaming costs		(2,934)	(1,949)	(1,719)	(1,098)	(2,934)	(1,949)	(1,719)	(1,098)
Transmission costs		(3,806)	(4,152)	(1,799)	(2,163)	(3,806)	(4,152)	(1,799)	(2,163)
Discounts and commissions		(44,894)	(38,994)	(23,104)	(20,080)	(43,875)	(38,560)	(22,551)	(19,827)
Advertisements, sponsorships and sales promotions		(14,216)	(8,558)	(8,265)	(4,948)	(11,665)	(7,127)	(5,939)	(3,670)
Employee costs	9	(22,150)	(19,050)	(11,154)	(9,734)	(21,710)	(18,651)	(10,928)	(9,520)
Depreciation of property and equipment	13	(82,913)	(80,863)	(41,932)	(48,636)	(82,913)	(80,863)	(41,932)	(48,636)
Depreciation of right of use assets	14	(49,815)	(41,864)	(25,250)	(21,146)	(49,815)	(41,864)	(25,250)	(21,146)
Amortisation of intangible assets	15	(24,277)	(20,777)	(12,003)	(2,274)	(21,617)	(18,117)	(10,672)	(945)
Other operating expenses	10	(44,899)	(36,364)	(25,529)	(19,826)	(42,329)	(35,328)	(24,154)	(19,003)
Operating profit		352,312	273,709	172,984	140,604	361,103	279,199	178,639	144,108
Finance income	7	7,066	5,677	2,660	4,773	6,957	5,677	2,595	4,773
Finance costs	8	(90,743)	(64,270)	(50,602)	(33,241)	(90,743)	(64,270)	(50,602)	(33,241)
Profit before taxation		268,635	215,116	125,042	112,136	277,317	220,606	130,632	115,640
Taxation	12	(87,006)	(73,289)	(40,237)	(44,048)	(89,478)	(74,937)	(41,780)	(45,101)
Profit for the period		181,629	141,827	84,805	68,088	187,839	145,669	88,852	70,539
Profit attributable to:
Owners of the parent		181,940	141,827	85,116	68,088	187,839	145,669	88,852	70,539
Non-controlling interest		(311)	-	(311)	-	-	-	-	-
		181,629	141,827	84,805	68,088	187,839	145,669	88,852	70,539
Earnings per share
Earnings per share-
basic/diluted (N)	35	8.92	6.97	4.17	3.35	9.23	7.16	4.37	3.47

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MTN Nigeria Communications Plc

Unaudited condensed consolidated and separate financial statements for the six months period ended 30 June 2022

Condensed consolidated and separate statement of other comprehensive income

			Group				Company
		6 months	6 months	3 months	3 months	6 months	6 months	3 months	3 months
		ended 30	ended 30	ended 30	ended 30	ended 30	ended 30	ended 30	ended 30
In millions of Nigerian Naira		June 2022	June 2021	June 2022	June 2021	June 2022	June 2021	June 2022	June 2021
Profit for the period	181,629	141,827	84,805	68,088	187,839	145,669	88,852	70,539
Items that may be reclassified to profit or loss
Transfer of fair value reserve of investments designated at FVOCI*	(111)	-	(155)	-	(111)	-	(155)	-
Other comprehensive income for the period net of taxation	(111)	-	(155)	-	(111)	-	(155)	-
Total comprehensive income for the period	181,518	141,827	84,650	68,088	187,728	145,669	88,697	70,539
Attributable to:
Owners of the parent	181,829	141,827	84,961	68,088	187,728	145,669	88,697	70,539
Non-controlling interest	(311)	-	(311)	-	-	-	-	-
	181,518	141,827	84,650	68,088	187,728	145,669	88,697	70,539

*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.

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