MTN Nigeria reported a loss after tax of N400.44 billion for the year ending December 31, 2024, driven by the devaluation of the naira, which led to increased foreign exchange losses and negatively impacted the company’s earnings. The loss, revealed in the company’s audited financial statements released on Thursday, marks a 192% increase from the N137.02 billion loss recorded in 2023.
With over 80 million customers, the telecommunications operator noted that the steep depreciation of the naira had a significant effect on its foreign exchange exposure. As a result, forex losses surged to N925 billion, compared to N740 billion the previous year. By the end of 2024, the naira had depreciated to N1,535/$, down from N907/$ at the close of 2023.
Despite this setback, MTN Nigeria’s revenue rose by 36%, reaching N3.36 trillion in 2024, up from N2.47 trillion in the previous year. This growth was fueled by strong demand for data and digital services.
According to the report, “Forex losses from the revaluation of foreign currency-denominated obligations led to a loss after tax of N400.4 billion (2023: N137 billion loss), although there was a positive result in Q4 with a PAT of N114.5 billion.” It further mentioned that the company’s negative retained earnings increased to N607.5 billion (December 2023: negative N208 billion), but showed improvement from the N727.2 billion deficit recorded in June 2024.
Operating profit, which reflects the profit from core business activities, stood at N778.2 billion, a slight increase of 0.46% from N774.6 billion in the previous year. However, these gains were overshadowed by forex losses.
MTN Nigeria’s CEO, Karl Toriola, commented, “We are encouraged by the resilience of our business in FY 2024, which highlights our commitment to growth and cost management. Despite significant macroeconomic challenges, including record-high inflation and ongoing currency and energy price volatility, we remained focused on executing our strategy and creating long-term value for our stakeholders.”
He also expressed gratitude for the recent approval of tariff adjustments, emphasizing their importance for the sustainability of the industry and addressing the company’s negative capital position.
MTN Nigeria Communications Plc, incorporated on November 8, 2000, as a private limited liability company, received a license from the Nigerian Communications Commission (NCC) on February 9, 2001, to build and operate a GSM cellular network and related services nationwide. The company began operations on August 8, 2001.
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