'We've taken over' - MTN move to buy stake in competitor after declaring N147bn in profit

MTN Nigeria is eyeing stakes in its competitor, 9mobile. The Nigerian telecommunication giant plans to acquire 9mobile’s operating spectrum.

The option to sell its spectrum became necessary after 9mobile firm fell on hard times upon the exit of its key technical partner and investors, Mubadala of United Arab Emirates (UAE) in 2017 according to a Technology Times report.

Conversation on going

A source from MTN told Punch that there are ongoing conversations for the acquisition of 9mobile’s operating spectrum.

“Once we have the spectrum, it is more like we have taken over the company. The spectrum is what they use to operate, once they don’t have it again, they can’t. I can’t confirm how much is being discussed yet,” the source said.

Reuben Muoka, the Director of Public Affairs, at NCC, however, said it is not aware of such a conversation.

He said, “We are not aware. It is not for us to confirm. We are the regulator. It is two organizations that are discussing commercial relationships until they tell us. We are not going to confirm whether we are aware or not. We are also reading that they are having discussions. I am sure they know the appropriate thing to do.”

MTN boosts revenue but declines in profit

This comes after the telecommunications company declared a massive boost in revenue by 21.76% to N1.77 trillion in nine months ended 30th September 2023 as contained in its financial report.

However, the profit for the period declined by 45.22% to reach N147 billion from N269 billion in the corresponding period of the previous year.

MTN Nigeria’s CEO, Karl Toriola, said that factors such as persistent inflation and tough operating conditions affected consumer spending.

Earlier, Legit.ng reported how the current economic hardship triggered millions of Nigerians to drop the use of multiple phone networks. Toriola, however, revealed that the telco would expand its quota of 4G and 5G data subscribers.

He said, “We plan to roll out capex during Q4 to reach 83% 4G and 10% 5G population coverage by year-end. In addition, we will leverage the additional 2.6GHz spectrum to enhance network capacity. This will help us sustain growth in data traffic and further drive our Own the Home strategy by leveraging the 5G fixed wireless access devices, mobile broadband solutions, and fiber-to-the-home connectivity.”