MTN Nigeria Communications (MTNN) released its H1 22 unaudited results after the close of trading on Friday (29 July). The group reported Q2 22 EPS of N4.16 (+24.2% y/y), culminating in H1 22 EPS of N8.92 (+28.0%). An interim dividend of N5.60/s (+23.1% y/y) was proposed (below our estimate), implying an interim dividend yield of 2.8% on the last closing price.

The achieved EPS, when annualised, is in line with consensus forecast for FY 22 but by 4.9%, owing to a negative surprise on the Net interest line.

Although earnings were in line with the market’s expectation, we expect investor reaction to be buoyed by the increased dividend. Year-to-date, the stock is up 1.6%.