March 1, 2021
By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Telecoms giant, MTN Nigeria Communications Plc on Monday said its profit after tax (PAT) inched up -0.95 percent to N205 billion in the audited period ended December 31, 2020 from N203 billion declared in the same period of 2019.
Profit before tax (PBT) of the company rose 2.61 percent to N298.8 billion in the review period of 2020 from N291.3 billion recorded in 2019 end.
Revenue of the company grew to N1.346 billion in 2020 end from N1.169 billion in the corresponding period of 2019; indicating a growth of 15.09 percent, according to MTNN in a filing with the Nigerian Stock Exchange (NSE).
The telecoms announced a final dividend payout of N5.90 per share compared to final dividend of N4.97 per 2 kobo ordinary share paid in 2019 year end.
Earlier MTNN paid an interim dividend of N3.50 per share in the Half Year (H1) period ended June 30, 2020, with the N5.90 offered it brings the total dividend for the 2020 financial year to N9.40 kobo per share compared to N7.92 kobo paid in 2019 end. The dividend payout is subject to appropriate withholding tax and approval, the company said.
According to the telecoms giant, qualification and closure dates has been scheduled for May 04 and May 05, 2021 respectively, while Annual General Meeting (AGM) and payment dates are May 25 and May 26, 2021 apiece.
Cordros Report says a final dividend of N5.90 per share proposed, was above their estimate and management’s guidance, which equates to a yield of 3.4 percent on the last closing price (N174.00 on February 26).
“We expect a positive investor reaction, especially with the higher-than-expected dividend payout (93.2% vs management guidance of 80.0%). MTNN’s share price is up 2.4% YTD, and on our estimates, the stock is trading on 2021E P/E and EV/EBITDA multiples of 11.8x and 5.2x, a discount to emerging market peers 21.5x and 5.4x. Our estimates are under review,” the Cordros report added.
