MTN Nigeria Communications Plc
Unaudited condensed consolidated and separate financial statements
for the three months period ended 31 March 2024
MTN Nigeria Communications Plc
Unaudited condensed consolidated and separate financial statements for the three months period ended 31 March 2024
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 | 7 |
Condensed consolidated and separate statement of cash flows | 8 |
Notes to the condensed consolidated and separate financial statements | 9 - 43 |
1
MTN Nigeria Communications Plc
Unaudited condensed consolidated and separate financial statements for the three months period ended 31 March 2024
Financial highlights
In millions of Nigerian Naira
Revenue Operating profit (Loss)/profit before taxation
(Loss)/profit for the period attributable to the owners of the company Basic and diluted (loss)/earnings per share (N)*
Share capital
Total equity attributable to the owners of the company Net liabilities per share (N)
Stock exchange information
3 months | 3 months | % Change | ||
ended 31 | ended 31 | |||
Notes | March 2024 March 2023 | |||
6 | 752,983 | 568,136 | 32.54 | |
174,081 | 206,619 | (15.75) | ||
(575,692) | 162,914 | (453.37) | ||
(390,668) | 107,621 | (463.00) | ||
36 | (18.63) | 5.13 | (463.00) | |
As at 31 | As at 31 | % Change | ||
March | December | |||
2024 | 2023 | |||
420 | 420 | - | ||
(437,064) | (45,404) | 862.61 | ||
(20.85) | (2.17) | 862.61 |
Market price per share as at period end (N) | 232.00 | 240.00 | (3.33) |
Market capitalisation as at period end (N'million) | 4,871,072 | 4,878,240 | (0.15) |
Number of shares issued and fully paid as at period end (millions) | 20,996 | 20,996 | - |
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 three months period ended 31 March 2024
Condensed consolidated and separate statement of profit or loss
Group | Company | ||||
3 months | 3 months | 3 months | 3 months | ||
ended 31 | ended 31 | ended 31 | ended 31 | ||
In millions of Nigerian Naira | Notes | March 2024 | March 2023 | March 2024 | March 2023 |
Revenue | 6 | 752,983 | 568,136 | 758,837 | 567,677 |
Direct network operating costs | 10 | (252,823) | (135,428) | (252,823) | (135,351) |
Value added services costs | (8,847) | (7,105) | (8,847) | (7,105) | |
Costs of SIM starter packs, handsets and accessories | (12,915) | (6,311) | (12,915) | (6,311) | |
Interconnect costs | (49,054) | (37,173) | (49,054) | (37,173) | |
Roaming costs | (4,059) | (1,531) | (4,059) | (1,531) | |
Transmission costs | (4,212) | (2,087) | (4,212) | (2,087) | |
Discounts and commissions | (36,770) | (26,778) | (35,227) | (25,741) | |
Advertisements, sponsorships and sales promotions | (13,026) | (9,367) | (7,368) | (6,720) | |
Employee costs | 9 | (19,655) | (12,101) | (17,941) | (10,852) |
Other operating expenses | 11 | (54,662) | (27,605) | (53,977) | (36,782) |
Depreciation of property and equipment | 13 | (68,623) | (49,776) | (68,623) | (49,776) |
Depreciation of right of use assets | 14 | (34,440) | (29,048) | (34,440) | (29,048) |
Amortisation of intangible assets | 15 | (19,816) | (17,207) | (18,130) | (15,877) |
Operating profit | 174,081 | 206,619 | 191,221 | 203,323 | |
Finance income | 7 | 5,336 | 6,631 | 4,804 | 6,184 |
Finance cost* | 8.1 | (98,741) | (45,837) | (98,453) | (45,837) |
Net foreign exchange loss* | 8.2 | (656,368) | (4,499) | (656,314) | (4,499) |
(Loss)/profit before taxation | (575,692) | 162,914 | (558,742) | 159,171 | |
Tax credit/(expense) | 12 | 182,998 | (54,481) | 178,275 | (53,166) |
(Loss)/profit for the period | (392,694) | 108,433 | (380,467) | 106,005 | |
(Loss)/profit attributable to: | |||||
Owners of the company | (390,668) | 107,621 | (380,467) | 106,005 | |
Non-controlling interest | (2,026) | 812 | - | - | |
(392,694) | 108,433 | (380,467) | 106,005 | ||
Earnings per share | |||||
Basic and diluted (loss)/earnings per share (N) | 36 | (18.63) | 5.13 | (18.15) | 5.06 |
*See note 8.3
3
MTN Nigeria Communications Plc
Unaudited condensed consolidated and separate financial statements for the three months period ended 31 March 2024
Condensed consolidated and separate statement of other comprehensive income
In millions of Nigerian Naira
(Loss)/profit for the period
Items that may be reclassified to profit or loss
Fair valuation loss on investments designated at FVOCI*
Other comprehensive loss for the period net of taxation Total comprehensive (loss)/income for the period
Attributable to:
Owners of the company
Non-controlling interest
Group | Company | ||
3 months | 3 months | 3 months | 3 months |
ended 31 | ended 31 | ended 31 | ended 31 |
March 2024 | March 2023 | March 2024 | March 2023 |
(392,694) | 108,433 | (380,467) | 106,005 |
(516) | (1,195) | (212) | (1,195) |
(516) | (1,195) | (212) | (1,195) |
(393,210) | 107,238 | (380,679) | 104,810 |
(391,184) | 106,426 | (380,679) | 104,810 |
(2,026) | 812 | - | - |
(393,210) | 107,238 | (380,679) | 104,810 |
*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 three months period ended 31 March 2024
Condensed consolidated and separate statement of financial position
Group | Company | ||||||
In millions of Nigerian Naira | Notes | 31 Mar 2024 | 31 Dec 2023 | 31 Mar 2024 | 31 Dec 2023 | ||
Assets | |||||||
Non-current assets | |||||||
Property and equipment | 13 | 1,098,145 | 1,095,111 | 1,098,145 | 1,095,111 | ||
Right-of-use assets | 14 | 545,980 | 478,826 | 545,980 | 478,826 | ||
Intangible assets | 15 | 434,184 | 447,599 | 414,571 | 426,300 | ||
Investments in subsidiaries | 16 | - | - | 100,378 | 100,378 | ||
Deferred tax asset | 26.2 | 337,766 | 151,362 | 322,851 | 140,777 | ||
Other investments | 17 | 8,076 | 6,632 | 7,459 | 6,632 | ||
Other non-current assets | 18 | 34,779 | 33,516 | 34,779 | 33,516 | ||
2,458,930 | 2,213,046 | 2,524,163 | 2,281,540 | ||||
Current assets | |||||||
Inventories | 19 | 5,573 | 6,027 | 5,142 | 6,027 | ||
Trade and other receivables | 20 | 333,183 | 215,414 | 359,467 | 239,692 | ||
Current investments | 21 | 62,785 | 7,256 | 52,850 | 2,619 | ||
Restricted cash | 23 | 407,256 | 402,010 | 400,569 | 394,209 | ||
Cash and cash equivalents | 22 | 191,343 | 345,074 | 176,616 | 315,548 | ||
1,000,140 | 975,781 | 994,644 | 958,095 | ||||
Total assets | 3,459,070 | 3,188,827 | 3,518,807 | 3,239,635 | |||
Equity and liabilities | |||||||
Equity | |||||||
Share capital | 35.1 | 420 | 420 | 420 | 420 | ||
Share premium | 35.2 | 166,362 | 166,362 | 166,362 | 166,362 | ||
Treasury shares | 35.3 | (4,869) | (4,869) | (4,869) | (4,869) | ||
Other reserves | 35.4 | 185 | 701 | 496 | 708 | ||
Accumulated loss | (599,162) | (208,018) | (508,309) | (127,842) | |||
Equity attributable to owners of the company | (437,064) | (45,404) | (345,900) | 34,779 | |||
Non-controlling interest | 2,340 | 4,560 | - | - | |||
(434,724) | (40,844) | (345,900) | 34,779 | ||||
Liabilities | |||||||
Non-current liabilities | |||||||
Borrowings | 28 | 531,576 | 487,817 | 531,576 | 487,817 | ||
Lease liabilities | 31 | 1,025,525 | 813,634 | 1,025,525 | 813,634 | ||
Deferred tax liability | 26.1 | 749 | 1,149 | - | - | ||
Provisions | 29 | 44 | 46 | 44 | 46 | ||
Employee benefits | 30 | 10,981 | 9,703 | 10,981 | 9,703 | ||
Share based payment liability | 34 | 17,836 | 16,910 | 17,836 | 16,910 | ||
1,586,711 | 1,329,259 | 1,585,962 | 1,328,110 | ||||
5
MTN Nigeria Communications Plc
Unaudited condensed consolidated and separate financial statements for the three months period ended 31 March 2024
Condensed consolidated and separate statement of financial position
Group | Company | |||||||
In millions of Nigerian Naira | Notes | 31 Mar 2024 | 31 Dec 2023 | 31 Mar 2024 | 31 Dec 2023 | |||
Current liabilities | ||||||||
Trade and other payables | 24 | 1,084,258 | 707,787 | 1,059,497 | 693,435 | |||
Current tax payable | 27 | 161,777 | 157,971 | 161,468 | 157,669 | |||
Borrowings | 28 | 611,801 | 689,352 | 611,801 | 689,352 | |||
Lease liabilities | 31 | 290,661 | 190,777 | 290,661 | 190,777 | |||
Contract liabilities | 25 | 94,090 | 102,796 | 93,708 | 102,414 | |||
Provisions | 29 | 32,647 | 28,216 | 31,584 | 27,187 | |||
Deposit held for MoMo customers | 32 | 1,823 | 7,601 | - | - | |||
Derivatives | 33 | 30,026 | 15,912 | 30,026 | 15,912 | |||
2,307,083 | 1,900,412 | 2,278,745 | 1,876,746 | |||||
Total liabilities | 3,893,794 | 3,229,671 | 3,864,707 | 3,204,856 | ||||
Total equity and liabilities | 3,459,070 | 3,188,827 | 3,518,807 | 3,239,635 | ||||
The unaudited condensed consolidated and separate financial statements were approved by the Board of Directors on the 29 April 2024 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.
6
MTN Nigeria Communications Plc
Unaudited condensed consolidated and separate financial statements for the three months period ended 31 March 2024
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 2023 | 407 | 17,216 | 17,623 | (4,869) | 1,664 | 246,679 | 261,097 | 1,445 | 262,542 |
Profit for the period | - | - | - | - | - | 107,621 | 107,621 | 812 | 108,433 |
Other comprehensive loss | - | - | - | - | (1,195) | - | (1,195) | - | (1,195) |
Balance at 31 March 2023 | 407 | 17,216 | 17,623 | (4,869) | 469 | 354,300 | 367,523 | 2,257 | 369,780 |
Balance at 1 January 2024 | 420 | 166,362 | 166,782 | (4,869) | 701 | (208,018) | (45,404) | 4,560 | (40,844) |
Loss for the period | - | - | - | - | - | (390,668) | (390,668) | (2,026) | (392,694) |
Prior year adjustments - MoMo PSB | - | - | - | - | - | (476) | (476) | (194) | (670) |
Other comprehensive loss | - | - | - | - | (516) | - | (516) | - | (516) |
Balance at 31 March 2024 | 420 | 166,362 | 166,782 | (4,869) | 185 | (599,162) | (437,064) | 2,340 | (434,724) |
Company | |||||||||
Balance at 1 January 2023 | 407 | 17,216 | 17,623 | (4,869) | 1,664 | 297,524 | 311,942 | - | 311,942 |
Profit for the period | - | - | - | - | - | 106,005 | 106,005 | - | 106,005 |
Other comprehensive loss | - | - | - | - | (1,195) | - | (1,195) | - | (1,195) |
Balance at 31 March 2023 | 407 | 17,216 | 17,623 | (4,869) | 469 | 403,529 | 416,752 | - | 416,752 |
Balance at 1 January 2024 | 420 | 166,362 | 166,782 | (4,869) | 708 | (127,842) | 34,779 | - | 34,779 |
Loss for the period | - | - | - | - | - | (380,467) | (380,467) | - | (380,467) |
Other comprehensive loss | - | - | - | - | (212) | - | (212) | - | (212) |
Balance at 31 March 2024 | 420 | 166,362 | 166,782 | (4,869) | 496 | (508,309) | (345,900) | - | (345,900) |
7
MTN Nigeria Communications Plc
Unaudited condensed consolidated and separate financial statements for the three months period ended 31 March 2024
Condensed consolidated and separate statement of cash flows
Group | Company | ||||
3 months | 3 months | 3 months | 3 months | ||
ended 31 | ended 31 | ended 31 | ended 31 | ||
In millions of Nigerian Naira | Notes | March 2024 | March 2023 | March 2024 | March 2023 |
Cash flows from operating activities | |||||
Cash generated from operations | 37 | 620,388 | 296,004 | 630,548 | 291,260 |
Finance cost paid | 8.1 | (241,823) | (46,341) | (241,823) | (46,341) |
Interest received | 7 | 4,511 | 6,631 | 3,979 | 6,184 |
Net cash generated from operating activities | 383,076 | 256,294 | 392,704 | 251,103 | |
Cash flows from investing activities | |||||
Acquisition of property and equipment | (70,609) | (23,964) | (70,609) | (23,964) | |
Acquisition of intangible assets | (7,142) | (6,567) | (7,142) | (6,567) | |
Acquisition of right of use assets | (29,948) | (6,120) | (29,948) | (6,120) | |
Proceeds from disposal of property and equipment | 435 | 226 | 435 | 226 | |
Sale of investment in non-current FGN bonds | - | 256 | - | 256 | |
Purchase of bonds, treasury bills and foreign deposits | (55,092) | (49,109) | (49,424) | (49,056) | |
Sale of bonds, treasury bills and foreign deposits | - | 22,284 | - | 22,284 | |
Purchase of contract acquisition costs | (1,511) | (860) | (1,511) | (860) | |
Purchase of non-current FGN bonds | (1,421) | - | (804) | - | |
Increase in non-current prepayments | (1,455) | - | (1,455) | - | |
Increase in restricted cash | (6,360) | (12,152) | (7,474) | (12,152) | |
Net cash flows used in investing activities | (173,103) | (76,006) | (167,932) | (75,953) | |
Cash flows from financing activities | |||||
Proceeds from borrowings | 3,350 | 129,320 | 3,350 | 129,320 | |
Repayment of borrowings | (322,731) | (57,858) | (322,731) | (57,858) | |
Repayment on lease liabilities | (49,249) | (35,323) | (49,249) | (35,323) | |
Net cash flow (used in)/generated from financing activities | (368,630) | 36,139 | (368,630) | 36,139 | |
Net (decrease)/increase in cash and cash equivalents | (158,657) | 216,427 | (143,858) | 211,289 | |
Cash and cash equivalent at the beginning of the period | 345,168 | 349,788 | 315,589 | 324,532 | |
Effect of exchange rate fluctuations on cash held | 4,888 | (1,048) | 4,888 | (1,048) | |
22 | |||||
Cash and cash equivalents at the end of the period | 191,399 | 565,167 | 176,619 | 534,773 | |
8
MTN Nigeria Communications Plc
Unaudited condensed consolidated and separate financial statements for the three months period ended 31 March 2024
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 three months period ended 31 March 2024 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 2023 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 2023.
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 2024, 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 2024, but do not have an impact on the interim condensed consolidated financial statements of the Group. The amendments are set out below:
1. Classification of Liabilities as Current or Non-current - Amendments to IAS 1.
In January 2020 and October 2022, the IASB issued amendments to paragraphs 69 to 76 of IAS 1 to specify the requirements for classifying liabilities as current or non-current. The amendments clarify:
- What is meant by a right to defer settlement
- That a right to defer must exist at the end of the reporting period
- That classification is unaffected by the likelihood that an entity will exercise its deferral right
- That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification.
9
Attention: This is an excerpt of the original content. To continue reading it, access the original document here. |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
MTN Nigeria Communications Limited published this content on 29 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2024 23:22:10 UTC.