Mtn Nigeria Communications Plc · NSENG:MTNN
Mtn Nigeria Communications — Q3 2024 Earnings Presentation
17 slides from Mtn Nigeria Communications's earnings presentation, Nov 1, 2024
Slide 1: Financial results for the quarter ended
bil N igeria Financial results for the _quarter ended.
Slide 2: Agenda
Agenda 01 Operational Review 02 Financial Review 03 Outlook
Slide 3: Business overview
O01 “7. Business overview
Slide 4: Operating context
Operating confex! Sustained underlying operating performance despite challenging operating conditions exerting cost pressure on business and consumers Q Market context & Key activities lab,| Solid results == Naira depreciation: N907/US$ in + Reduction of our US$ trade line * Service revenue +33.6% |
Slide 5: Progress on our priorities
Progress on our priorifies Advancing strategic initiatives to recover profitability and restore capital position Qg Regulated Tariff increase 1) Optimise Capex Reduce US$ Exposure Deeply engaged with the authorities through relevant industry bodies on tariff increase Aim to mitigate the impacts of m
Slide 6: Driving Fintech growth strategy
Driving Finfech growth strategy Repositioning of ecosystem fo drive sustainable growth and monetisation Active MoMo Wallets (m) | Key highlights 9M YoY -21.8% * Change in leadership with a focus on quality customer acquisition over quantitative wallet growth 5.3 5.5 48 - . A - scheibys Hi 36 * Strea
Slide 7: Financial review
Slide 8: Impacts of the naira depreciation
Impacts of the naira depreciation The naira depreciation had a severe impact on the business, depleting retained earnings and equity Macro impacts 1. EBITDA margin 3. Net income and reserves * The naira devaluation resulted in a 15pp impact on the * Loss after Tax of N514.9 billion (Q3 2024 PAT of N
Slide 9: Revenue growth and efficiency drive margin recovery
Revenue growth and efficiency drive margin recovery Data drives strong service revenue growth, supported by voice, fintech & digital services | Expenses largely driven by naira depreciation Capex intensity (IAS 17) Revenue | Expenses | N’bn ) a, sore = 1,510.1 860.2 Voice : EBITDA Cost of sales | Da
Slide 10: EBITDA Margin - Evolution
EBITDA Margin - Evolution Solid underlying margins supported by tower contract renegotiation (2.3pp EBITDA margin uplift in Q3) but tapered by macroeconomic headwinds EBITDA Margin Evolution EBITDA Margin cs ) 9M YoY -14.9pp D> | 47.8% ~ . 1.1% 55.0% 15.0% 51.5% 2.6% = : 36.3% Q3 23 Q4 23 Ql24 Q224
Slide 11: Successful renegotiation of tower leases terms
Successful renegotiation of tower leases Ferms j) Nigeria Positions MTN Nigeria to recover profitability & resolve negative equity position over the medium-term Salient points | Key terms (Blended Average across full tower portfolio) Before After Effective 1 Apr'24__ Contract term: 2024-29 VHS) Cont
Slide 12: Illustrative impacts of renegotiated lease terms
IIlustrative impacts for MTN Nigeria of renegotiated |eqse ferms * Improved commercial terms with reduced FX exposure and CPI discounts, with caps, support improved financial profile * Expected net positive impact of between N3.5-4 trillion on PBT over the duration of the contracts, based on current
Slide 13: Impact of the naira devaluation
Impact of Fhe Adjusting for the impacts of the naira devaluation in opex and finance charges reveals solid underlying performance | EBITDA margin would have been 51.3% and positive PAT of N367.1 billion, up 13.3%. Proforma income statement adjusted for the naira devaluation impact IFems (N'billions)
Slide 14: Looking ahead
Slide 15: Key takeaways
Key ‘akeaqways Focus on the initiatives to accelerate wallet adoption and the growth of our merchant ecosystem Continue to pursue tariff increases to recover costs Prioritise subscriber base recovery impacted by the effects of the NIN-SIM directive Focus on initiatives to accelerate revenue growth S
Slide 16: FY 2024 guidance
FY 2024 guidance Continued commercial momentum with a focus on efficiencies SA * Assumes no tariff increase EER High-20% to Low-30% Service Revenue * Incorporates the impact of the tower lease contract renegotiation EBITDA Margin I Low teens Capex intensity 35-37%
Slide 17: Thank you
Foday. Contact: Chima Nwaokoma Senior Manager, Investor Relations Chimaobi.Nwaokoma@mtn.com +234 803 200 0186
MTN Nigeria Communications — Q3 2024 Earnings Presentation on 6ix