Lagos, Nigeria – MTN Nigeria Communications Plc has reported a loss after tax of N400.4 billion for the full year of 2024, despite a 35.9% increase in revenue to N3.3 trillion. The financial results, published on the Nigerian Exchange (NGX) website, highlight the ongoing impact of economic challenges, including high inflation and the devaluation of the naira.
Impact of Naira Devaluation
The telecom giant attributed its loss to significant foreign exchange losses, which increased by 24.98% to N925.36 billion, up from N740.43 billion in 2023. The devaluation of the naira—falling from N907.1 per dollar at the end of 2023 to N1,535 per dollar by December 2024—exacerbated MTN’s operational costs, particularly for tower leases and foreign currency obligations.
Karl Toriola, Chief Executive Officer of MTN Nigeria, acknowledged the challenges but noted some improvement in dollar liquidity and reduced volatility in the forex market in the latter half of the year.
“These headwinds significantly impacted MTN Nigeria’s costs, particularly those related to tower leases and other foreign currency obligations,” Toriola said.
Without the forex-related losses, the company stated it would have recorded a profit after tax (PAT) of N247.3 billion for the year.
Subscriber Growth and Investments
Despite the financial challenges, MTN Nigeria continued to expand its network and subscriber base.
- The company’s capital expenditure (CapEx), excluding leases, stood at N443.5 billion in 2024, aimed at improving network coverage and service quality.
- Subscriber base grew by 1.6% to 80.9 million, despite regulatory hurdles related to NIN-SIM registration.
- Active data subscribers increased by 7% to 47.7 million, supported by improved service offerings and customer retention strategies.
“Our diligent gross connection and churn management initiatives, including ongoing innovation in our customer value propositions, supported the growth of our subscriber base,” Toriola noted.
Future Outlook and Recovery Plans
Looking ahead, MTN Nigeria remains optimistic about its recovery prospects in 2025. The company aims to restore a positive net asset position within 12 months and expects a 40% revenue boost following recent tariff hikes approved by regulators in January 2025.
However, the telco cautioned that uncertainties in the macroeconomic environment, including exchange rate fluctuations and consumer responses to the new tariffs, could impact its recovery trajectory.
“In terms of our balance sheet, we aim for a recovery in our retained income and shareholders’ equity positions to positive balances within the next 12 months,” Toriola stated.
MTN Group’s Financial Performance
MTN Group, the parent company of MTN Nigeria, also warned of a significant decline in its earnings per share (EPS) for 2024, largely due to forex losses from Nigeria. The group’s headline earnings per share (HEPS) are expected to decline, despite strong overall business performance.
MTN Group acknowledged that the approval of tariff adjustments in Nigeria was a crucial step toward ensuring the long-term sustainability of both the company and the telecoms sector in the country.
The group is set to announce its full-year 2024 financial results on March 17, 2025.
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