MTN Nigeria Communications Plc has reported a profit before tax of N298.87bn for the 2020 financial year, up from N291.28bn in the previous year.

The telecommunications company, in its audited financial statements filed with the Nigerian Stock Exchange, said its profit after tax rose to N205.21bn last year from N203.28bn in 2019.

Its revenue increased by 15 per cent year-on-year to N1.35tn from N1.16tn, while its operating profit grew to N426.71bn from N393.23bn.

The telco said the 8.5 per cent growth in operating profit was impacted largely by the increase in finance costs due to increased borrowings (December 2020: N521bn, December 2019: N413bn), leading to a decline in the growth of profit before tax to 2.6 per cent.

It said on July 28, 2020, the board of directors approved interim dividends of N71.2bn for the year ended December 31, 2020 (interim 2019: N60bn).

The interim dividend represents N3.50 kobo per ordinary share on the issued share capital of 20.3 billion ordinary shares of 2 kobo each for the period ended 30 June 2020, according to the financial statements.

MTN said, “The board of directors recommend the payment of a final dividend of N5.90 per ordinary share of 2 kobo each subject to shareholders’ approval at the forthcoming Annual General Meeting.

“If the proposed final dividend is approved, the total dividend for the financial year ended December 31, 2020 will be N9.40 per share of 2 kobo each. Withholding tax would be deducted at the point of payment.”