Welcome, Guest: Join Nairaland / LOGIN! / Trending / Recent / New
Stats: 2,890,267 members, 6,950,726 topics. Date: Wednesday, 06 July 2022 at 11:38 PM

MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined - Business - Nairaland

Nairaland Forum / Nairaland / General / Business / MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined (16593 Views)

Nigerian Banks Migrate To New Cheque Standards, Old Ones Expire December 31 / How to Earn Money from The Business Section (And Make It More Valuable For You) / Ussd Codes For Nigerian Banks (2) (3) (4)

(1) (2) (3) (Reply) (Go Down)

MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by Parachoko(m): 8:26am On May 22
MTN Nigeria now more valuable than all Nigerian Banks, Insurance Companies combined.

MTN Nigeria is now worth N5 trillion making it more valuable than all banks, insurance companies, and the entire financial services companies

Why MTN share price may have peaked

Nigeria’s telecommunication giant, MTN Nigeria is now worth N5 trillion making it more valuable than all banks, insurance companies, and the entire financial services companies listed on the Nigerian Stock Exchange combined.

This is according to market valuation data as of May 20th, 2022, tracked and compiled by Nairametrics from the Nigerian Exchange.

As of Friday, MTN Nigeria closed with a total market capitalization of N5.068 trillion making it the third most capitalized stock on the Nigerian Exchange. MTN Nigeria now joining Airtel and Dangote Cement, all members of the SWOOT to be worth more than the financial services sector.

MTN was briefly the most capitalized stock two weeks ago when the share price was trading at N264 per share valuing it at N5.3 trillion. However, Airtel and Dangote Cement prices have since risen while MTN shed some of its gains.

MTN Nigeria belongs to a category of companies termed SWOOTs by Nairametrics which means Stocks Worth Over One Trillion Naira. Other members of the group include Airtel Africa (N5.5 trillion) Dangote Cement (N5.1 trillion), BUA Cement (N2.5 trillion), Nestle (N1.1 trillion), and BUA Food (N1 trillion).


MTN now more Valuable than all Financial Services Companies
Shares of MTN have been on the rise since the beginning of the year starting from about N197 to as high as N270 last week.

The share spike which is also largely driven by MTN’s blistering 2021 FY results and 2022 first-quarter results took it past N5 trillion during the week joining Airtel and Dangote Cement as the only three stocks worth over N5 trillion in Nigeria.
The entire Nigerian Financial Services sector which includes banks, insurance companies, and other financial institutions is valued at a combined N4 trillion.
With an over N1 trillion gap between MTN’s valuation and that of Financial services companies, the telecom giant is now firmly more valued than all of them and will have to experience a 20% dip in share price to fall below.
MTN’s share price has risen 51.38% in the last year.
While Airtel, valued at over N5.5 trillion is also more valuable than all the financial services firms, MTN is more significant as the company’s financials represent income generated from Nigeria alone, excluding other African countries.

Airtel’s income includes that of other sub-Saharan African countries even though the income of Nigeria is dominant with about 40% of revenues.



Why are telcos more valuable
A combination of factors explains why MTN and even Airtel are more valuable than the Nigerian financial services sector including banks.

While banks have been declaring impressive profits telcos have gone further by not just declaring profits but achieving double-digit growth projections for other sectors of their market, especially data.
With over 199 million active mobile subscribers, telcos have the customer base and demand that will continue to drive up revenues and profits in years to come.
Apart from data, Telcos also have the capacity and funding to veer into other sectors of the economy starting with banking. The recent MOMO license obtained by MTN opens up a new source of revenue for the organization.
Asides, from their growth prospects, telcos also have better control of their margins and returns. Unlike the financial services sector, Telcos deliver over 100% return on average equity of about 20%. MTN reported a return on average equity of 134% in 2021.
Apart from fundamentals, Nigerian banks also have billions in shares trading with much higher liquidity when compared to telcos.
This is due to the high proportion of single owners of the shares of the banks compared to telcos. For example, Zenith has about 643, 965 shareholders compared to MTN’s 10,931 as of the end of 2021. Also, whilst 2 shareholders own 15% of Zenith Bank, one shareholder owns 76% of MTN.
The shift in the size of Nigeria’s economy
We are also not surprised that MTN has now eclipsed the entire financial service sector in market valuation.

According to Nigeria’s GDP data, the telecommunications sector had a nominal GDP of N14.1 trillion as of December 2021 compared to N5.3 trillion for the entire financial services sector.
10 years ago (2021), Telecommunication Sector has a nominal GDP of N5.3 trillion while banks had a GDP nominal size of N1.49 trillion.
This was not the case before the advent of Telcos.


https://nairametrics.com/2022/05/21/mtn-nigeria-now-more-valuable-than-all-nigerian-banks-insurance-companies-combined/

8 Likes 4 Shares

Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by SARSCoV2: 8:27am On May 22
Because they are very good with slavery.


Enslave multitude and you definitely get big profit.

36 Likes 2 Shares

Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by Parachoko(m): 8:34am On May 22
SARSCoV2:
Because they are very good with slavery.


Enslave multitude and you definitely get big profit.

I wander why Nigerian laws are so lenient on this network provider.

There data price is so expensive, but there network is very terrible.

In this 2022, there is no network provider that's operating a stable and fast internet service in Nigeria. And nobody is doing anything about it, everybody just dey look as dem dey make billions of Naira and not giving value for money.

MTN has no excuse for not giving us fast and stable internet service in Nigeria by now.

60 Likes 3 Shares

Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by Abfinest007(m): 8:37am On May 22
Mtn are good in wat they do so leave it for them

8 Likes 1 Share

Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by kettykings: 9:00am On May 22
Perception is everything, kudos to their marketing team.

4 Likes

Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by kenny714433(m): 9:50am On May 22
shocked

See money everywhere. There's bastard money in Tech and Agro and manufacturing sectors.

Agro and manufacturing sectors might need lots of infrastructure to give you the required money which ordinary Nigerian might not be able to afford.

But have you seen tech? It requires just thinking outside the box. Just imagine developing an app with global consumption.

As for manufacturing, anyone that can venture into steel, aluminium, ceramics, glass even wood production in this country will become a billionaire sooner.

Or just imagine preserving the abundant sea resources and shipping it to the North. Even palm oil

28 Likes 1 Share

Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by Rugaria: 9:52am On May 22
That company should be nationalized!
It's responsible for huge capital flight from this country

5 Likes 1 Share

Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by Generalwoodz(m): 11:49am On May 22
Why on Earth do they keep stealing from us ?
angry angry Personally, MTN have stolen so much from me. I can't possibly calculate or estimate. However, the amount they stole can get me a fairly used Helicopter.
For some guys here the amount they stole from them can build a nice house, buy a transformer for their village, and latest iPhone.

For others, especially the unmarried among us, MTN has stolen huge amounts from them that could suffice for a lavish wedding ceremony.

Even my struggling and hustling guys would tell you that MTN has stolen their money very close to price of a Toyota Corolla.

16 Likes 1 Share

Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by DamnNiggar: 11:51am On May 22
Thiefnubu

3 Likes 1 Share

Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by SEGLIZ: 11:52am On May 22
why won't they after reaping off Nigerians.

2 Likes

Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by olu77(m): 11:52am On May 22
Unbelievable!
Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by id4sho(m): 11:52am On May 22
grin it is finished, this country na cruise
Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by ClassicMan202(m): 11:52am On May 22
They go soon buy 9ja

I know say our politicians go sell sharp sharp
Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by Elporo(m): 11:53am On May 22
Parachoko:

In this 2022, there is no network provider that's operating a stable and fast internet service in Nigeria. And nobody is doing anything about it, everybody just dey look as dem dey make billions of Naira and not giving valid for money.

No be lie. I have MTN, Glo, Spectra, Airtel. Do you know, these four networks can fail at the same time.

I mean, you switch from MTN to Glo, no network, Glo to Spectra , no network, Spectra to Airtel no network. shocked

20 Likes

Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by Rebuke: 11:53am On May 22
Before nko
Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by Cutehector(m): 11:53am On May 22
Na boredom dey make telcos make money.


If youths went to work, we wont be spending hours and hours on social media. Look how we spend so much on data that doesnt even last.

5 Likes

Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by havenz(m): 11:53am On May 22
Why dem no go dey more valuable than all finical institutions in Nigeria when our government don't know what to do to stop all this network provider from stealing more from poor Nigerians. Rubbishing Rubbish...
Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by Ballzproblemm: 11:53am On May 22
cause them be thief, MTN data finish fast plus they cut it shhut as soon as your m. don they finsish

2 Likes

Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by Realists(m): 11:53am On May 22
kenny714433:
shocked

See money everywhere. There's bastard money in Tech and Agro and manufacturing sectors.

Agro and manufacturing sectors might need lots of infrastructure to give you the required money which ordinary Nigerian might not be able to afford.

But have you seen tech? It requires just thinking outside the box. Just imagine developing an app with global consumption.

As for manufacturing, anyone that can venture into steel, aluminium, ceramics, glass even wood production in this country will become a billionaire sooner.

Or just imagine preserving the abundant sea resources and shipping it to the North. Even palm oil

Our banking sectors are the ones killing great ideas with over 30 percent interest. We need 5 to 9 percent interest rates for our manufacturing & Naira to grow. The non interest bank ie, Islamic Bank are too small to grow our economy.

11 Likes

Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by drlateef: 11:53am On May 22
Yes indeed! Why not? The banks and insurance companies in NIGERIA have chosen to remain in the dark ages when people lived in the caves.

5 Likes

Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by inoki247: 11:53am On May 22
Na private and foreign company be that oh without any monopoly...

People always shouting yen yen ehn na because of monopoly Dangote dey make what I know is if you know aw to play your game weda monopoly or not you will make it...

2 Likes

Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by Rebuke: 11:54am On May 22
Before nko? With the way they are sapping our data and airtime everytime, what do yhu think?

1 Like 1 Share

Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by Mindlog: 11:54am On May 22
Rugaria:
That company should be nationalized!
It's responsible for huge capital flight from this country

After being nationalized, it would be mismanaged and it will become history like NITEL

2 Likes

Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by Elliotwaveforec: 11:54am On May 22
That doesn't matter to an average investor; what matters is the dividend yield and PE ratio.

Why should I buy MTN shares with yield of 2% and ignore Zenithbank of yield of 15%?

9 Likes 1 Share

Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by uchaymart(m): 11:54am On May 22
Okay...I think you meant to say MTN is more valuable than access Bank?

MTN that deducts money when a call does not go through?

MTN that deducts data even when you turn it off?

Next time, give out questionnaires to individuals for a good accessment of the value of your company.

2 Likes

Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by McOluOmo: 11:55am On May 22
Rugaria:
That company should be nationalized!
It's responsible for huge capital flight from this country
easy brother man

1 Like

Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by Esseite: 11:55am On May 22
The exact reason why it was wise pascal dozie had to give up diamond bank for MTN..

2 Likes

Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by ello29(m): 11:55am On May 22
Parachoko:



https://nairametrics.com/2022/05/21/mtn-nigeria-now-more-valuable-than-all-nigerian-banks-insurance-companies-combined/


Look at your simple analysis mitigating risk factor's. How can you measure a company risk? You are only talking base on the figures at your disposal I bet

1 Like

Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by Reinaldo: 11:56am On May 22
Wow
Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by JosephXavier: 11:56am On May 22
Telecom money no he your mate

Take a look at the top ten richest men in the world and you'll understand what I mean
Re: MTN Nigeria More Valuable Than Nigerian Banks, Insurance Companies Combined by penearth(m): 11:57am On May 22
MTN wa da sap people money on daily bases tru calls!

(1) (2) (3) (Reply)

How To Know If Your Bank Is Financially Sound / Innoson Boss, Innocent Chukwuma Released On Bail / First Bank Collected N10k Without Recharging My Phone In 9 Days

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2022 Oluwaseun Osewa. All rights reserved. See How To Advertise. 128
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.