Bullish Post Listing Market Reaction on MTNN Stock


Friday, May 17, 2019 / 10:59AM  / Anchoria AM Research / Header Image Credit: NSE


Post Listing Market Reaction on MTNN stock

It was all yellow at the Nigeria Stock Exchange yesterday as one of the most anticipated transactions was consummated with the listing of 100% of the issued and paid up ordinary shares of MTN Nigeria Communication by way of introduction. 

MTN Nigeria Share rose by 10% from N90 per share to N99 per share after listing on the premium board of the Nigeria Stock Exchange (NSE) yesterday. At the end of trading session, only 5.5 million unit was exchanged with over 67 million bids left unfilled.


Proshare Nigeria Pvt. Ltd.


MTN Listing Implication on the Exchange

• With the listing of MTN Nigeria on the Exchange, the total market capitalization rose by c18% to N12.52 trillion from N10.63 trillion the previous day.

• The market closed bullish, up by 0.54% after 8 consecutive days of decline.

• MTN Nigeria becomes Nigeria’s only listed telecoms company

• MTN Nigeria is now the second most capitalized company on the Exchange after Dangote Cement.

Proshare Nigeria Pvt. Ltd.

MTN Nigeria’s Investment Case: Competitive Analysis

    • As at Q1 2019, MTN Nigeria remains the leading telecom operator with a contribution of c38% to the total market share. This represents over 65 million subscribers.
    • This is closely followed by Globacom (c27%), Airtel (c26%) and 9mobile (c10%).
    • MTN Nigeria Active Data subscribers increased by c6.04% YoY to 46.55 million representing a contribution of 40.15% to the Total Internet Subscribers.
    • MTN Group has a total of 236.60 million subscribers with the Nigeria business contributing 25% to the total subscribers while in terms of revenue the Nigeria business contributes c33% to the Group’s revenue.


    Prior to the Listing of the MTN Nigeria Communication on the Premium Board of the Nigeria Stock Exchange (NSE), the company released its first financials as a public company (2019 Q1) and held its Analyst presentation during the week. A quick takeaway from the result and presentation is considered below.

    Proshare Nigeria Pvt. Ltd.

    The Financial Highlight

    • Growth in Revenue by 13.19% YoY to N282.09 billion due to growth in key revenue line during the period under consideration 

    • The growth in data revenue by 31.5% was driven increased number of subscribers coupled with improved network quality and pricing flexibility while increase in fintech revenue by 22.9% was due to increased in customer base coupled with ability to leverage on strong mobile distribution.

    • In terms of contribution to the revenue, Voice accounted for 74.9%, Data (16.6%), Digital (1.0%), Fintech (2.9%) and Other (4.5%).

    • Increased operational efficiency as the Company’s EBITDA Margin and PAT Margin rose to 53.33% and 17.17% from 41.81% and 12.92% in Q1 2018 respectively while the Cost to Income ratio fell by 400bps to 69% in Q1 2019. This is as a result of increased revenue coupled with cost reduction strategy of the company.

    • Despite a 53.84% YoY increase in Net Finance Cost, the Profit Before Tax and Profit After Tax grew by 44.13% and 50.44% to N70.1 and N48.44 billion in Q1 2019.

    • Impressive return on asset. In Q1 2019, the Return on Average Asset (ROAA) grew to 16.23% from 13.32% in Q1 2018 while the return on Average Equity (ROAE) fell to 93.58% in Q1 2019 from 117.65% in Q1 2018.

    • Reduction in Cashflow in Q1 2019 is due to the payment of N73 billion as dividend and N55 billion as fine payment. The fine payment of the fine is expected to be completed this month, 29th May 2019.

    Proshare Nigeria Pvt. Ltd.

    Proshare Nigeria Pvt. Ltd.

    Related News

    1.       Nigeria Stock Exchange Admits MTN Nigeria Communications Plc to its Premium Board

    2.      A Fool’s Guide to the MTN Nigeria’s 2019 Public Listing

    3.      MTN Nigeria Receives Approval To List On The Premium Board Of NSE; Listing To Proceed On 16th May

    4.      MTN Q1 2019 Conference Call; Key Takeaways, Management Keeps Firm Hand on Profit Machine

    5.      MTNN Q1 2019 Analyst Presentation

    6.      Extracts For MTN Nigeria From The Group Quarterly Statement Update for Period Ended March 2019

    7.      MTN VS AGF: Court Rejects AGF Preliminary Objection

    8.     MTN Nigeria Sues FGN and AGF For N3billion

    9.      SEC Nigeria Confirms Receipt of MTN Application for Registration of Securities

    10.  MTN Announces Conversion From A Private Company To A PLC

    11.   MTN to List On the NSE Before End of H1, 2019

    12.  MTN Nigeria Releases Financial Results For The FYE Dec 31, 2018; Plan To List on NSE By H1 2019

    13.  MTN Nigeria Resolves Amicably Issues Relating to Foreign Exchange Remittances

    14.  Providing Reliable Connectivity for Businesses: MTN Delivers Cutting Edge Solutions to NNPC

    15.   Reports Indicate That Nigeria’s Central Bank and MTN Reach Tentative Agreement On $8bn Fines

    16.  MTN Ghana Successfully Completes Its Initial Public Offer

    17.   MTN Nigeria – Interim Financials For H1 2018

    18.  Neither MTN Nigeria Nor Any of Its Advisers Has Filed Any IPO Application With SEC Nigeria

    19.  MTN Ghana Launches Mobile Money Based IPO

    20. MTN Nigeria IPO Teaser – Listing and Precursory Information

    21.  MTN Nigeria To List On The NSE; A Promise Fulfilled – OTC Equity Research


    Proshare Nigeria Pvt. Ltd.

    Proshare Nigeria Pvt. Ltd.

    Related News