MTN Nigeria has reported a ₦400.44 billion loss after tax for the financial year ending December 31, 2024, as the sharp devaluation of the naira significantly increased foreign exchange losses, weighing heavily on the telecom giant’s earnings.
According to the company’s audited financial statements released on Thursday, the loss represents a 192% surge compared to the ₦137.02bn loss recorded in 2023.
MTN, which serves over 80 million customers, attributed its financial decline to the sharp depreciation of the naira, which pushed forex losses to ₦925bn, up from ₦740bn in the previous year.
The telco noted that by the end of 2024, the naira had depreciated to ₦1,535/$1, compared to ₦907/$1 as of December 31, 2023.
Revenue growth amidst challenges
Despite the forex-induced losses, MTN Nigeria’s revenue climbed by 36% to ₦3.36tn in 2024, up from ₦2.47tn in 2023. The company credited this growth to strong demand for data and digital services.
A section of the financial report stated:
“Forex losses arising from the revaluation of foreign currency-denominated obligations resulted in a loss after tax of ₦400.4bn (2023: ₦137bn loss), albeit with a positive result in Q4 (PAT of ₦114.5bn).
“Consequently, we reported negative retained earnings of ₦607.5bn (December 2023: negative ₦208bn), which was an improvement from the June 2024 balance of ₦727.2bn.”
Forex wipes out operating profit
MTN Nigeria’s operating profit, which reflects earnings from its core business activities, stood at ₦778.2bn, representing a marginal 0.46% increase from ₦774.6 billion in the previous year. However, these gains were completely eroded by foreign exchange losses.
CEO’s remarks on industry challenges
MTN Nigeria’s CEO, Karl Toriola, acknowledged the resilience of the company despite economic challenges, stating: “We are encouraged by the resilience of our business in FY 2024, which reflects our strong commitment to driving growth and managing costs.
“Despite facing significant macroeconomic headwinds, including record-high inflation, as well as ongoing currency and energy price volatility, we remained focused on executing our strategy and creating long-term value for our stakeholders.
“We are grateful to the authorities for the recent approval of tariff adjustments, which are essential for our industry’s sustainability and crucial for addressing our negative capital position.”
Background on MTN Nigeria
MTN Nigeria Communications Plc was incorporated on November 8, 2000, as a private limited liability company.
The company was granted a licence by the Nigerian Communications Commission (NCC) on February 9, 2001, to establish and operate GSM cellular network systems and other telecom-related services nationwide.
MTN officially commenced operations in Nigeria on August 8, 2001, and has since grown to become one of the country’s largest telecom providers.
