MTN Nigeria Communications Plc
Unaudited condensed consolidated and separate financial statements
for the nine months period ended 30 September 2023
MTN Nigeria Communications Plc
Unaudited condensed consolidated and separate financial statements for the nine months period ended 30 September 2023
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 - 43 |
1
MTN Nigeria Communications Plc
Unaudited condensed consolidated and separate financial statements for the nine months period ended 30 September 2023
Financial highlights
9 months | 9 months | % Change | |||
ended 30 | ended 30 | ||||
September | September | ||||
In millions of Nigerian Naira | Notes | 2023 | 2022 | ||
Revenue | 6 | 1,772,949 | 1,456,135 | 21.76 | |
Operating profit | 608,426 | 537,679 | 13.16 | ||
Profit before taxation | 232,469 | 400,673 | (41.98) | ||
Profit for the period attributable to the owners of the company | 148,091 | 270,339 | (45.22) | ||
Basic/ diluted earnings per share (N)* | 36 | 7.06 | 12.89 | (45.22) | |
As at 30 | As at 31 | % Change | |||
September | December | ||||
2023 | 2022 | ||||
Share capital | 420 | 407 | 3.15 | ||
Total equity attributable to the owners of the company | 309,367 | 334,237 | (7.44) | ||
Net assets per share (N)* | 14.75 | 16.44 | (7.44) | ||
Stock exchange information | |||||
Market price per share as at period end (N) | 264.00 | 215.00 | 22.79 | ||
Market capitalisation as at period end (N'million) | 5,542,944 | 4,376,325 | 26.66 | ||
Number of shares issued and fully paid as at period end (millions)* | 20,996 | 20,355 | 3.15 |
The financial highlights reflect Group numbers only.
*Restated to reflect the changes in number of shares, see note 35.6
2
MTN Nigeria Communications Plc
Unaudited condensed consolidated and separate financial statements for the nine months period ended 30 September 2023
Condensed consolidated and separate statement of profit or loss
Group | Company | ||||||||
9 months | 9 months | 3 months | 3 months | 9 months | 9 months | 3 months | 3 months | ||
ended 30 | ended 30 | ended 30 | ended 30 | ended 30 | ended 30 | ended 30 | ended 30 | ||
September | September | September | September | September | September | September | September | ||
In millions of Nigerian Naira | Notes | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
Revenue | 6 | 1,772,949 | 1,456,135 | 614,210 | 506,048 | 1,772,992 | 1,455,959 | 614,719 | 506,322 |
Direct network operating costs | 10 | (447,601) | (333,925) | (170,642) | (118,116) | (447,465) | (333,924) | (170,651) | (118,115) |
Value added services costs | (17,318) | (16,674) | (6,282) | (5,590) | (17,318) | (16,674) | (6,282) | (5,590) | |
Costs of SIM starter packs, handsets and accessories | (20,135) | (15,312) | (7,152) | (5,466) | (20,135) | (15,312) | (7,152) | (5,466) | |
Interconnect costs | (116,168) | (106,720) | (39,205) | (35,588) | (116,168) | (106,720) | (39,205) | (35,588) | |
Roaming costs | (6,310) | (4,790) | (2,437) | (1,856) | (6,310) | (4,790) | (2,437) | (1,856) | |
Transmission costs | (7,949) | (5,691) | (3,108) | (1,885) | (7,949) | (5,691) | (3,108) | (1,885) | |
Discounts and commissions | (85,689) | (69,474) | (30,315) | (24,580) | (83,099) | (67,771) | (29,774) | (23,896) | |
Advertisements, sponsorships and sales promotions | (31,088) | (21,036) | (11,672) | (6,819) | (19,213) | (16,995) | (6,568) | (5,330) | |
Employee costs | 9 | (45,549) | (32,882) | (17,079) | (10,733) | (42,573) | (32,213) | (16,341) | (10,505) |
Other operating expenses | 11 | (87,216) | (69,066) | (32,840) | (24,165) | (95,708) | (60,696) | (32,545) | (18,365) |
Depreciation of property and equipment | 13 | (156,753) | (128,992) | (58,343) | (46,078) | (156,753) | (128,992) | (58,343) | (46,078) |
Depreciation of right of use assets | 14 | (86,991) | (75,858) | (29,147) | (26,043) | (86,991) | (75,858) | (29,147) | (26,043) |
Amortisation of intangible assets | 15 | (55,756) | (38,036) | (19,135) | (13,759) | (51,767) | (34,048) | (17,805) | (12,430) |
Operating profit | 608,426 | 537,679 | 186,853 | 185,370 | 621,543 | 556,275 | 195,361 | 195,175 | |
Finance income | 7 | 21,121 | 8,214 | 4,728 | 1,149 | 20,278 | 7,920 | 4,609 | 964 |
Finance costs | 8 | (397,078) | (145,220) | (159,500) | (54,477) | (397,078) | (145,220) | (159,500) | (54,477) |
Profit before taxation | 232,469 | 400,673 | 32,081 | 132,042 | 244,743 | 418,975 | 40,470 | 141,662 | |
Taxation | 12 | (85,105) | (131,634) | (13,401) | (44,628) | (88,762) | (137,124) | (15,933) | (47,646) |
Profit for the period | 147,364 | 269,039 | 18,680 | 87,414 | 155,981 | 281,851 | 24,537 | 94,016 | |
Profit attributable to: | |||||||||
Owners of the company | 148,091 | 270,339 | 19,502 | 88,403 | 155,981 | 281,851 | 24,537 | 94,016 | |
Non-controlling interest | (727) | (1,300) | (822) | (989) | - | - | - | - | |
147,364 | 269,039 | 18,680 | 87,414 | 155,981 | 281,851 | 24,537 | 94,016 | ||
Earnings per share | |||||||||
Basic/diluted to the owners of the parent (N)* | 36 | 7.06 | 12.89 | 0.93 | 4.22 | 7.44 | 13.44 | 1.17 | 4.48 |
*Restated to reflect the changes in number of shares, see note 35.6
3
MTN Nigeria Communications Plc
Unaudited condensed consolidated and separate financial statements for the nine months period ended 30 September 2023
Condensed consolidated and separate statement of other comprehensive income
Group | Company | ||||||||
9 months | 9 months | 3 months | 3 months | 9 months | 9 months | 3 months | 3 months | ||
ended 30 | ended 30 | ended 30 | ended 30 | ended 30 | ended 30 | ended 30 | ended 30 | ||
September | September | September | September | September | September | September | September | ||
In millions of Nigerian Naira | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |
Profit for the period | 147,364 | 269,039 | 18,680 | 87,414 | 155,981 | 281,851 | 24,537 | 94,016 | |
Items that may be reclassified to profit or loss | |||||||||
Fair valuation loss on investments designated at FVOCI* | (1,264) | (120) | (85) | (9) | (1,264) | (120) | (85) | (9) | |
Other comprehensive loss for the period net of taxation | (1,264) | (120) | (85) | (9) | (1,264) | (120) | (85) | (9) | |
Total comprehensive income for the period | 146,100 | 268,919 | 18,595 | 87,405 | 154,717 | 281,731 | 24,452 | 94,007 | |
Attributable to: | |||||||||
Owners of the company | 146,827 | 270,219 | 19,417 | 88,394 | 154,717 | 281,731 | 24,452 | 94,007 | |
Non-controlling interest | (727) | (1,300) | (822) | (989) | - | - | - | - | |
146,100 | 268,919 | 18,595 | 87,405 | 154,717 | 281,731 | 24,452 | 94,007 |
*Fair valuation loss on investments designated at fair value through other comprehensive income (FVOCI) is recognised on Federal Government treasury bills and bonds investments net of tax except for Federal Government bonds.
The accompanying notes are an integral part of these condensed consolidated financial statements.
4
MTN Nigeria Communications Plc
Unaudited condensed consolidated and separate financial statements for the nine months period ended 30 September 2023
Condensed consolidated and separate statement of financial position
Group | Company | |||||
In millions of Nigerian Naira | Notes | 30 Sept 2023 31 Dec 2022 30 Sept 2023 31 Dec 2022 | ||||
Assets | ||||||
Non-current assets | ||||||
Property and equipment | 13 | 1,046,406 | 928,357 | 1,046,406 | 928,357 | |
Right-of-use assets | 14 | 668,743 | 652,110 | 668,743 | 652,110 | |
Intangible assets | 15 | 449,075 | 335,599 | 432,149 | 314,684 | |
Investments in subsidiaries | 16 | - | - | 75,178 | 74,328 | |
Deferred tax asset | 26.2 | 13,501 | 11,018 | - | - | |
Other investments | 17 | 10,278 | 10,585 | 10,278 | 10,585 | |
Other non current assets | 18 | 28,265 | 17,287 | 28,265 | 17,287 | |
2,216,268 | 1,954,956 | 2,261,019 | 1,997,351 | |||
Current assets | ||||||
Inventories | 19 | 6,337 | 3,678 | 6,337 | 3,678 | |
Trade and other receivables | 20 | 212,659 | 191,496 | 238,841 | 212,232 | |
Current investments | 21 | 32,001 | 20,288 | 30,539 | 17,406 | |
Restricted cash | 23 | 386,808 | 196,082 | 381,145 | 194,622 | |
Cash and cash equivalents | 22 | 224,854 | 349,500 | 207,112 | 324,244 | |
862,659 | 761,044 | 863,974 | 752,182 | |||
Total assets | 3,078,927 | 2,716,000 | 3,124,993 | 2,749,533 | ||
Equity and liabilities | ||||||
Equity | ||||||
Share capital | 35.1 | 420 | 407 | 420 | 407 | |
Share premium | 35.2 | 166,362 | 17,216 | 166,362 | 17,216 | |
Treasury shares | 35.3 | (4,869) | (4,869) | (4,869) | (4,869) | |
Other reserves | 35.4 | 400 | 1,664 | 400 | 1,664 | |
Retained profit | 147,054 | 319,819 | 205,789 | 370,664 | ||
Equity attributable to owners of the company | 309,367 | 334,237 | 368,102 | 385,082 | ||
Non-controlling interest | 718 | 1,445 | - | - | ||
310,085 | 335,682 | 368,102 | 385,082 | |||
Liabilities | ||||||
Non-current liabilities | ||||||
Borrowings | 28 | 473,695 | 439,463 | 473,695 | 439,463 | |
Lease liabilities | 31 | 666,637 | 662,655 | 666,637 | 662,655 | |
Deferred tax liability | 26.1 | 37,490 | 93,596 | 35,943 | 90,851 | |
Provisions | 29 | 44 | 43 | 44 | 43 | |
Employee benefits | 30 | 6,648 | 6,835 | 6,648 | 6,835 | |
Other non-current liabilities | 34 | 9,504 | 8,569 | 9,504 | 8,569 | |
1,194,018 | 1,211,161 | 1,192,471 | 1,208,416 | |||
Current liabilities | ||||||
Trade and other payables | 24 | 654,367 | 514,892 | 651,093 | 514,206 | |
Current tax payable | 27 | 159,152 | 199,959 | 158,856 | 199,687 | |
Borrowings | 28 | 549,074 | 250,210 | 549,074 | 250,210 | |
Lease liabilities | 31 | 47,021 | 64,829 | 47,021 | 64,829 | |
Contract liabilities | 25 | 99,274 | 92,861 | 98,892 | 92,479 | |
Provisions | 29 | 47,001 | 42,087 | 46,008 | 31,562 | |
Deposit held for MoMo customers | 32 | 5,459 | 1,257 | - | - | |
Derivatives | 33 | 13,476 | 3,062 | 13,476 | 3,062 | |
1,574,824 | 1,169,157 | 1,564,420 | 1,156,035 | |||
Total liabilities | 2,768,842 | 2,380,318 | 2,756,891 | 2,364,451 | ||
Total equity and liabilities | 3,078,927 | 2,716,000 | 3,124,993 | 2,749,533 |
The unaudited condensed consolidated and separate financial statements were approved by the Board of Directors on the 26 October
2023 and were signed on its behalf by:
Karl Toriola | Modupe Kadri |
Chief Executive Officer | Chief Financial Officer |
FRC/2021/002/00000022839 | FRC/2020/001/00000020737 |
The accompanying notes form an integral part of the unaudited condensed consolidated and separate financial statements.
5
MTN Nigeria Communications Plc
Unaudited condensed consolidated and separate financial statements for the nine months period ended 30 September 2023
Condensed consolidated and separate statement of changes in equity
Share | Share | Total share | Treasury | Other | Retained Total equity | Non- | Total |
capital | premium | capital | shares | reserves | profit attributable to | controlling | equity |
owners of the | interest | ||||||
In millions of Nigerian Naira | company | ||||||
Group
Balance at 1 January 2022 Profit for the period Purchase of treasury shares Other comprehensive loss Acquisition of a subsidiary Dividends
Balance at 30 September 2022
Balance at 1 January 2023 Additional share issued Profit for the period Other comprehensive loss Dividends
Balance at 30 September 2023
Company
Balance at 1 January 2022 Profit for the period Purchase of treasury shares Other comprehensive loss Dividends
Balance at 30 September 2022
Balance at 1 January 2023 Additional share issued Profit for the period Other comprehensive loss Dividends
Balance at 30 September 2023
407 | 17,216 | 17,623 | - | 885 | 246,473 | 264,981 | - | 264,981 |
- | - | - | - | - | 270,339 | 270,339 | (1,300) | 269,039 |
- | - | - | (4,869) | - | - | (4,869) | - | (4,869) |
- | - | - | - | (120) | - | (120) | - | (120) |
- | - | - | - | - | - | - | 2,720 | 2,720 |
- | - | - | - | - | (288,280) | (288,280) | - | (288,280) |
407 | 17,216 | 17,623 | (4,869) | 765 | 228,532 | 242,051 | 1,420 | 243,471 |
407 | 17,216 | 17,623 | (4,869) | 1,664 | 319,819 | 334,237 | 1,445 | 335,682 |
13 | 149,146 | 149,159 | - | - | - | 149,159 | - | 149,159 |
- | - | - | - | - | 148,091 | 148,091 | (727) | 147,364 |
- | - | - | - | (1,264) | - | (1,264) | - | (1,264) |
- | - | - | - | - | (320,856) | (320,856) | - | (320,856) |
420 | 166,362 | 166,782 | (4,869) | 400 | 147,054 | 309,367 | 718 | 310,085 |
407 | 17,216 | 17,623 | - | 885 | 278,489 | 296,997 | - | 296,997 |
- | - | - | - | - | 281,851 | 281,851 | - | 281,851 |
- | - | - | (4,869) | - | - | (4,869) | - | (4,869) |
- | - | - | - | (111) | - | (111) | - | (111) |
- | - | - | - | - | (288,280) | (288,280) | - | (288,280) |
407 | 17,216 | 17,623 | (4,869) | 774 | 272,060 | 285,588 | - | 285,588 |
407 | 17,216 | 17,623 | (4,869) | 1,664 | 370,664 | 385,082 | - | 385,082 |
13 | 149,146 | 149,159 | - | - | - | 149,159 | - | 149,159 |
- | - | - | - | - | 155,981 | 155,981 | - | 155,981 |
- | - | - | - | (1,264) | - | (1,264) | - | (1,264) |
- | - | - | - | - | (320,856) | (320,856) | - | (320,856) |
420 | 166,362 | 166,782 | (4,869) | 400 | 205,789 | 368,102 | - | 368,102 |
6
MTN Nigeria Communications Plc
Unaudited condensed consolidated and separate financial statements for the nine months period ended 30 September 2023
Condensed consolidated and separate statement of cash flows
In millions of Nigerian Naira | Notes |
Cash flows from operating activities |
Group | Company | ||
9 months | 9 months | 9 months | 9 months |
ended 30 | ended 30 | ended 30 | ended 30 |
September | September | September | September |
2023 | 2022 | 2023 | 2022 |
Cash generated from operations | 37 |
Interest paid | 8 |
Interest received | 7 |
Dividends paid | |
Tax paid | |
Employee benefits payments | |
Share based payments | |
Provisions payments | |
Net cash generated from operating activities | |
Cash flows from investing activities |
991,471 777,855
(134,324) (132,979)
19,770 7,960
(171,697) (288,280)
(184,507) (139,511)
(1,468) (1,291)
(6,221) (5,843)
(12,214) (8,397)
500,810 209,514
1,000,674 785,490
(134,324) (132,979)
18,929 7,666
(171,697) (288,280)
(184,507) (139,511)
(1,468) (1,291)
(6,221) (5,843)
(12,214) (8,397)
509,172 216,855
Acquisition of property and equipment |
Acquisition of intangible assets |
Acquisition of right of use assets |
Proceeds from disposal of property and equipment |
Sale of investment in non-current FGN bonds |
Purchase of bonds, treasury bills and foreign deposits |
Sale of bonds, treasury bills and foreign deposits |
Purchase of contract acquisition costs |
Non-current prepayments |
Investment in subsidiary |
Increase in restricted cash |
Net cash flows used in investing activities |
Cash flows from financing activities |
(242,919) (261,784)
(154,430) (123,757)
(19,228) (15,236)
- 3,951
- 384
(33,025) (11,515)
22,662 46,844
(3,301) (3,587)
(11,769)-
--
(186,524) (52,625)
(627,367) (417,325)
(242,919) (261,784)
(154,430) (123,757)
(19,228) (15,236)
- 3,951
- 384
(33,025) (11,515)
22,662 54,174
(3,301) (3,587)
(11,769)-
- (10,880)
(186,522) (50,677)
(628,215) (418,927)
Proceeds from borrowings | |
Repayment of borrowings | |
Repayment on lease liabilities | |
Investment by non-controlling interest | |
Net cash flow (used in)/generated from financing activities | |
Net decrease in cash and cash equivalents | |
Cash at the beginning of the period | |
Exchange gain on cash and cash equivalents | |
Cash and cash equivalents at the end of the period | 22 |
365,500 307,359
(263,693) (179,177)
(133,753) (71,284)
- 2,720
(31,946) 59,618
(158,503) (148,193)
349,788 261,494
33,578 13,445
224,863 126,746
365,500 307,359
(263,693) (179,177)
(133,753) (71,284)
--
(31,946) 56,898
(150,989) (145,174)
324,532 247,628
33,578 13,445
207,121 115,899
7
MTN Nigeria Communications Plc
Unaudited condensed consolidated and separate financial statements for the nine months period ended 30 September 2023
Notes to the unaudited condensed consolidated and separate financial statements
- General information
MTN Nigeria Communications Plc (the Company) together with its subsidiaries (the Group) carry on the business of building and operating GSM Cellular Network Systems and other related services nationwide in Nigeria.
MTN Nigeria Communications Plc subsidiaries are XS Broadband Limited, Visafone Communications Limited, Yello Digital Financial Services Limited and MoMo Payment Service Bank Limited. Their principal activities are the provision of broadband fixed wireless access service, high quality telecommunication services and mobile financial services (fintech) respectively. Visafone Communications Limited is currently undergoing liquidation.
All subsidiaries are fully owned by MTN Nigeria except for MoMo Payment Service Bank Limited (MoMo PSB) where MTN Nigeria holds 80% of shareholding while Acxani Limited holds 20% non- controlling interest.
2. Basis of preparation
These condensed consolidated and separate financial statements for the nine months period ended 30 September 2023 have been prepared in accordance with International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) 34 Interim Financial Reporting.
The condensed consolidated and separate financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, this report is to be read in conjunction with the audited annual financial statements for the year ended 31 December 2022 which has been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), interpretations issued by the IFRS Interpretations Committee (IFRS IC) applicable to companies reporting under IFRS and with the requirements of the Financial Reporting Council of Nigeria (FRC) Act 2011 and Companies and Allied Matters Act of Nigeria (CAMA) 2020.
The condensed consolidated and separate financial statements are presented in Naira and rounded to the nearest millions, except where stated otherwise.
The accounting policies applied in the preparation of the condensed consolidated and separate financial statements are consistent with those followed in the preparation of the Group's consolidated and separate financial statements for the year ended 31 December 2022.
The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. Several amendments and interpretations apply for the first time in 2023, but do not have an impact on the condensed consolidated and separate financial statements of the Group.
3. Basis of measurement
The condensed consolidated and separate financial statements have been prepared under the historical cost basis except for derivatives measured at fair value and debt instruments measured at Amortised cost, fair value through profit or loss (FVTPL) and at fair value through other comprehensive income (FVOCI) and for the following items which have been measured on an alternative basis on each reporting date:
- Defined benefit obligations at present value of the obligation.
- Shared based transactions at grant date fair value of the equity instrument issued.
- Inventory at lower of cost and net realisable value.
- Lease liabilities at present value of future lease payments
4. New standards and interpretations
4.1 New and amended standards adopted by the Group
Several amendments apply for the first time in 2023, but do not have an impact on the interim condensed consolidated and separate financial statements of the Group.
- IFRS 17 Insurance Contracts - Effective for annual periods beginning on or after 1 January 2023.
- Amendments to IAS 8 Accounting Policies and Accounting Estimates: Definition of accounting estimates - Effective date for annual periods beginning on or after 1 January 2023.
- Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2 - Effective date for annual periods beginning on or after 1 January 2023.
- Amendments to IAS 12 Income Tax - International Tax Reform-Pillar Two Model Rules. - Effective date for annual periods beginning on or after 1 January 2023.
- IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures - Effective for annual periods beginning on or after 1 January 2024, however, MTN Nigeria has elected for an early adoption of these standards for the year ending 31 December 2023.
These amendments had no impact on the interim condensed consolidated financial statements of the Group as there were no modifications during the period.
8
MTN Nigeria Communications Plc
Unaudited condensed consolidated and separate financial statements for the nine months period ended 30 September 2023
Notes to the unaudited condensed consolidated and separate financial statements
4. New standards and interpretations (continued) 4.2 Standards issued but not yet effective
The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group's interim condensed consolidated and separate financial statements. The Group intends to adopt these new and amended standards and interpretations, if applicable, when they become effective. The list of the new standards are set out below:
- Amendments to IAS 1: Non-current Liabilities with Covenants - Effective date for annual periods beginning on or after 1 January 2024
- Amendments to IFRS 16: Lease Liability in a Sale and Leaseback - Effective date for annual periods beginning on or after 1 January 2024
- Amendments to IAS 7 and IFRS 7 - Supplier Finance Arrangements - Effective date for annual periods beginning on or after 1 January 2024.
- Amendments to IAS 21: The Effects of Changes in Foreign Exchange Rates -Effective date for annual periods beginning on or after 1 January 2025. Earlier application is permitted.
9
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MTN Nigeria Communications Limited published this content on 30 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 07:20:47 UTC.