MTN Nigeria Plc has found support from investors who expect the telecom operator to improve its earnings for the last quarter of the 2024 financial year.

The CEO acted and solved the problems that reduced earnings during the first three quarters of 2024.

Despite dismal shareholders' equity, analysts consider that corporate bond issues positively affect market sentiment. MTN is projected to increase its overall equity through long-standing sources of income and revenues.

This leading telecom company financing requirement was accomplished through a series of short-term issues in the debt market in late 2024; nevertheless, the company continues to face negative equity and funding concerns.

As a result of the rising activity for telecom stock trading, namely gradual and even from time to time, sale purchases, the renegotiation of the rental agreements for the MTN Nigeria towers provided it with exposure to foreign exchange obligations and other risks.

Equity market analysts, who are optimistic about MTN Nigeria's prospects, forecast positive momentum, propelled by earnings surprise, in the stock market.

MTN Nigeria's shares price stood at N264.2 by the close of business last Friday. The activity picked up towards the end of the session, and more than one million shares, worth a total of about N285 million, changed hands on the local bourse.

A single-day rally like that raised MTN Nigeria's market capitalization by 3.61% or N5.547 trillion units. The investors are speculating about the next earnings from the changes in the tariffs that regulators approved before.

In a note from CardinalStone Securities Limited, they stated: "These nationwide new tariffs can become a major source of revenue growth for the telecommunications companies and, thus, we have to reevaluate our coverage companies".

Analysts from the investment firm determined that MTN Nigeria would be the operator that benefit the most from the implemented tariff increase of the year 2025. The revenue is expected to grow by 59.0%, as the CAGR is projected to be 26.6% medium term.

The research brought by MTN Nigeria shows that a thorough analysis has been conducted through which it was established that the last three quarters resulted in insufficient returns.


DO