MTN NIGERIA COMMUNICATIONS : AUDITED FINANCIAL STATEMENT FOR 2022

MTN Nigeria Communications Plc

Audited consolidated and separate financial statements

for the year ended 31 December 2022

Together with Directors' and Auditor's Reports

MTN Nigeria Communications Plc

Audited consolidated and separate financial statements for the year ended 31 December 2022

Corporate Information

Registered Company Number		395010
Directors	Names	Nationality	Position
	Dr. Ernest Ndukwe, OFR	Nigerian	Chairman
	Mr. Karl Toriola	Nigerian	Chief Executive Officer
	Mr. Muhammad K. Ahmad, OON	Nigerian	Independent Non-Executive
			Director
	Mr. Michael Ajukwu	Nigerian	Independent Non-Executive
			Director
	Mr. Andrew Alli	German	Non-Executive Director
	Mr. Rhidwaan Gasant	South African	Independent Non-Executive
			Director
	Dr. Omobola Johnson	Nigerian	Non-Executive Director
	Mr. Modupe Kadri	Nigerian	Executive Director
	Mr. Abubakar B. Mahmoud, SAN OON	Nigerian	Non-Executive Director
	Mr. Charles Molapisi*	South African	Non-Executive Director
	Ms. Tsholofelo Molefe	South African	Non-Executive Director
	Mr Ferdinand Moolman	South African	Non-Executive Director
	Mr. Mazen Mroue**	Lebanese	Non-Executive Director
	Mr. Ralph Mupita	South African	Non-Executive Director
	Mrs. Ifueko M. Omoigui Okauru, MFR	Nigerian	Non-Executive Director
	Mr. Jens Schulte-Bockum	German	Non-Executive Director
*Resigned effective 31 March 2022|**Appointed effective 1 June 2022
Registered office	4 Aromire road,
	Off Alfred Rewane
	Ikoyi Lagos
Holding company	MTN International (Mauritius) Limited
	incorporated in the Republic of Mauritius
Auditors	Ernst & Young Nigeria
	10th & 13th floors
	UBA House
	Marina
	Lagos
Company Secretary	Uto Ukpanah
Registrars	Coronation Registrars Limited
	9 Amodu Ojikutu Street
	Victoria Island, Lagos
Tax Identification Number	00969009-0001

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MTN Nigeria Communications Plc

Audited consolidated and separate financial statements for the year ended 31 December 2022

Contents

	Page
Financial highlights	3
Directors' report	4
Statement of directors' responsibilities	8
Statutory audit committee report	9
Statement of corporate responsibility for financial statements	10
Independent auditor's report	11
Consolidated and separate statement of profit or loss	18
Consolidated and separate statement of other comprehensive income	19
Consolidated and separate statement of financial position	20
Consolidated and separate statement of changes in equity	21
Consolidated and separate statement of cash flows	23
Notes to the audited consolidated and separate financial statements	24
Other national disclosures:
Value added statements	99
Five-year financial summaries	101

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MTN Nigeria Communications Plc

Audited consolidated and separate financial statements for the year ended 31 December 2022

Financial highlights

	Notes	2022	2021	% Change
		N million	N million
Revenue	9	2,012,272	1,654,299	21.6
Operating profit		733,298	584,747	25.4
Profit before taxation		533,972	436,687	22.3
Profit for the year attributable to the owners of the company		361,532	298,654	21.1
Share capital	26	407	407	-
Total equity attributable to the owners of the company		334,237	264,981	26.1
Basic/diluted earnings per share (N)	44	17.79	14.67	21.3
Net assets per share (N)		16.44	13.02	26.3
Stock Exchange Information
Dividend per share (DPS): - Interim (N)		5.60	4.55	23.1
Dividend per share (DPS): - Final (N) (proposed)		10.00	8.57	16.7
Market price per share as at year end (N)		215.00	197.00	9.1
Market capitalisation as at year end		4,376,325	4,009,935	9.1
Number of shares issued and fully paid as at year end (millions)	26	20,355	20,355	-
The financial highlights reflect Group numbers only.

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MTN Nigeria Communications Plc

Audited consolidated and separate financial statements for the year ended 31 December 2022

Directors' report

The directors present their report on the affairs of MTN Nigeria Communications Plc and its subsidiaries (the Group), together with the financial statements and independent auditors' report for the year ended 31 December 2022.

Principal activities of the Group

MTN Nigeria Communications Plc (MTN Nigeria or the Company) was incorporated on November 8, 2000 as a private limited liability company. It was granted a licence by the Nigerian Communications Commission on 09 February 2001 to undertake the business of building and operating GSM Cellular Network Systems and other related services nation-wide in Nigeria. The Company commenced operations on 08 August 2001 (commercial launch date). Currently, the Company holds a Unified Access Service License (UASL).

The Company re-registered as a public limited company, MTN Nigeria Communications Plc on 18 April 2019 and listed by introduction on the Premium Board of the Nigerian Stock Exchange on 16 May 2019.

The registered office address of the Company is 4, Aromire Road, Off Alfred Rewane, Ikoyi Lagos. The principal place of business is MTN Plaza, Falomo, Ikoyi, Lagos.

The Group's subsidiaries are XS Broadband Limited, Visafone Communications Limited, Yello Digital Financial Services Limited and MoMo Payment Service Bank Limited. The subsidiaries principal activities are the provision of broadband fixed wireless access service, high quality telecommunication services and mobile financial services in Nigeria.

The Nigerian Communication Commission (NCC) on 5 April 2019, granted Visafone Communications Limited (Visafone) the approval to transfer its 800mHz license and spectrum to MTN Nigeria Communications Plc. On 24 July 2019, the Board of Visafone approved the voluntary winding down of Visafone Communication Limited. The final general meeting of the Company was held on 5 October 2020 whereby the account of the winding up of the Company was approved. The process for the transfer and liquidation is currently on-going.

Business review

The Group recorded revenue of N2.01 trillion (2021: N1.65 trillion) and a profit after tax of N358.88 billion (2021: N298.65 billion) for the year.

Operating results and dividends
The following is a summary of the Group's operating results:
	2022	2021
	N million	N million
Revenue	2,012,272	1,654,299
Operating profit	733,298	584,747
Profit before taxation	533,972	436,687
Income tax expense	(175,095)	(138,033)
Profit for the year	358,877	298,654
Profit attributable to the owners of the company	361,532	298,654

During the year ended 31 December 2022, N288.19 billion (31 December 2021: N212.70 billion) dividend was approved and paid as follows:

∙	31	December 2021 final dividend:	N174.20 billion
∙	30	June 2022 interim dividend:	N113.99 billion

On 29 July 2022, the Board of Directors approved interim dividends of N113.99 billion for the year ended 31 December 2022 (Interim 2021: N92.61 billion).

The interim dividend represents N5.60 kobo per ordinary share on the issued share capital of 20.3 billion ordinary shares of 2 kobo each for the period ended 30 June 2022.

The Board of Directors recommend the payment of a final dividend of N10.00 per ordinary share of 2 kobo each subject to shareholders' approval at the forthcoming Annual General Meeting (AGM). If the proposed final dividend is approved, the total dividend for the financial year ended 31 December 2022 will be N15.60 per share of 2 kobo each. Withholding tax would be deducted at the point of payment.

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