Telecommunications operators in Nigeria are expected to earn more revenue as a result of a projected rise in calls and data usage this festive period.
According to Nairametrics, the financial records of MTN and Airtel, two of the country’s largest telcos, higher customer spending in December has always had a beneficial influence on their Q4 income throughout the years.
Aside from an increase in phone calls to wish family and friends well, more data is typically utilized around this time by people posting messages and videos on various platforms in celebration of the season.
According to industry insiders, the Christmas season provides additional time for customers to explore social media and view videos that eat their bandwidth. And as a result, many people spend more money on data than they normally do, without even realizing it.
MTN’s revenue increased by 8% in the fourth quarter of 2019 from N288.9 billion in the previous quarter to N313.2 billion. Similarly, telcos’ Q4 revenue climbed by 10% in 2020 to N370.6 billion, up from N337.6 billion in the previous quarter of the same year. MTN’s revenue increased by 8% in Q4 2021, from N414.9 billion in Q3 to N448 billion.
Airtel Nigeria’s financial records likewise indicate a similar pattern of growth in the third quarter of each year. Airtel reported $355 million in revenue for the quarter ended December 2019, an 8.5% increase over the previous quarter’s $327 million. Airtel also closed 2020 with a 9% increase in revenue for the fourth quarter of the year, totaling $412 million.
