It seems investors have shunned MTN’s impressive N2 trillion revenue recorded in the financial year that ended in December 2022.
NewsBeatng reports that MTN Nigeria Communication Plc on Wednesday, February 1, 2023, released its audited results for the 2022 FY ended December 31, 2022, reporting a 21.64% year-on-year revenue growth in 2022FY.
The company also reported a profit after tax of N358.777 billion in 2022 FY from N298.654 billion a year ago, representing a 20.16% year-on-year growth and earnings per share of N17.79 from N14.67 reported a year ago.
Despite this, the share price which closed at N230.9 on the day the result was announced has remained flat since then gaining only N10 per share or 3.8%.
The share price was expected to rise on the back of an impressive performance, especially the company’s ability to keep growing profits amidst its highly lucrative business mix.
Also, the growth in mobile/active fintech subscribers and active data users contributed to the reported revenue growth. Mobile subscribers for instance increased by 10.5% to 75.6 million; additional 7.2 million subscribers in 2022.
The operating profit and margin improved due to efficiency and cost control growing by 25% year-on-year to N733.298 million, which increased the operating profit margin to 36%.
Overall, Telco also continued to maintain a strong market share as its Consumer Business Unit, which includes the mass segments, contributed about 86% to the group’s revenue.
The company also paid an additional dividend of N10 per share taking its total dividends to N15.6 per share.
Investors also assign higher valuation multiples when companies beat their earnings forecast.
MTN reported an EPS of N17.79 for 2022 FY vis-à-vis analysts’ earnings projections indicating ‘missed’ earnings.
