MTN and Airtel Witness Significant Revenue Surge in Calls and Data Services in Q1 2023

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The Nigerian telecommunications market experienced a notable upswing in revenue during the first quarter of 2023, as telecommunication subscribers spent a total of N731.94 billion on calls and data services provided by MTN and Airtel. This figure reflects a remarkable 15.42 percent increase from the N634.17 billion spent during the same period in 2022, as reported in the financial results of the two telcos.


During the three-month period, MTN recorded N505.45 billion in revenue from calls and data services, while Airtel generated N226.49 billion. Notably, data services exhibited significant growth, nearly surpassing voice services in revenue generation for both telcos. MTN raked in N277.61 billion from voice services and N227.84 billion from data, while Airtel's revenue breakdown showed $262 million (equivalent to N120.61 billion) from voice and $230 million (equivalent to N105.88 billion) from data services.


Karl Toriola, the Chief Executive Officer of MTN Nigeria, acknowledged the challenges posed by the operating environment during the first quarter. The impacts of global macroeconomic and geopolitical developments, coupled with local factors such as petrol and cash shortages, led to increased pressure on economic activity, consumers, and businesses. Despite these challenges, MTN's data revenue surged by an impressive 40.0 percent, thanks to the continuous growth in active data users and increased data usage. The company's strategic investment in network infrastructure, particularly in 4G and 5G coverage, played a crucial role in supporting the rising data traffic.


Similarly, Airtel Africa's CEO, Olusegun Ogunsanya, highlighted the company's resilience in navigating the challenging operating environment. Airtel's focus on providing reliable, affordable, and accessible services across its markets contributed to sustaining its top-line growth momentum.


It is worth noting that Airtel Africa also faced a revenue loss of $110 million due to the Federal Government directive to bar customers who had not linked their SIMs to their NINs from making calls.


The increasing consumption of data services has emerged as a significant contributor to Nigeria's information and communications technology sector, according to the World Bank. The rise in smartphone traffic is expected to fuel further data usage, with Ericsson Mobility Report (June 2023) predicting data usage to reach at least 19GB per month by 2028.


In conclusion, the telecom sector in Nigeria continues to show promising growth, driven by the surging demand for data services and advancements in network infrastructure. As data consumption continues to rise, telecom operators are poised to capitalize on the increasing opportunities in the digital landscape, catering to the evolving needs of subscribers and supporting the country's overall technological development.

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