The board of telecommunications giant- MTN Nigeria Plc, submitted its score-card for the first quarter ended March 31, 2021, at the weekend, showing a faster profit growth than revenue for the period, despite the spike in direct network operating costs, depreciation on the right of use assets and amortization of tangible assets. The year’s profit was also constrained by the 16.2% growth in tax expense, following which there was a N22.005bn or 42.52% jump in net profit from N51.743bn in the corresponding period of last year to N73.748bn. This translated to Earnings Per Share of N3.62, as against N2.54 in the preceding Q1.

According to the result, MTN Nigeria generated N385.318bn in total revenue for the period, N56.147bn or 17.5% better than the N329.171bn reported last year; while direct network operating costs leaped by N22.759bn or 30.17% to N93.871bn, from N72.112bn.

Value added services costs rose to N4.225bn from N3.706bn; while cost of starter packs, handsets and accessories slumped to N269m during the period, from N4.25bn last year; with interconnect costs growing to N31.176bn from N28.019bn.

Transmission costs rose marginally from N1.49bn to N1.989bn; employee benefits stayed flat at N9.316bn from N9.263bn; discounts and commission increased from N16.048bn to N18.914bn; with advertisements, sponsorships and sales promotions dropped from N4.51bn to N3.609bn. Other operating expenses slowed down from N17.136bn to N16.548bn; depreciation of property and plans fell to N32.224bn from N37.363bn; while depreciation in rights of use assets soared to N20.717bn from N14.993bn; and amortization of intangible assets from N8.837bn in the first quarter of 2020, to N18.502bn. This resulted in operating profit of N133.107bn, compared to the previous N110.576bn.

Finance income dropped to N1.227bn from N5.695bn; while costs fell from N39.366bn to N31.345bn; leaving profit before tax at N102.989bn, up from N76.905bn.