MTN Nigeria Communications Plc has reported a post-tax loss of N400.4 billion for the 2024 financial year, despite a 35.9% revenue growth to N3.3 trillion, as revealed in its audited financial statements published on the Nigerian Exchange (NGX).
MTN High inflation and the devaluation of the naira, which raise operating costs, are the main causes of Nigeria’s ongoing financial difficulties.
The company’s net foreign exchange losses rise by 24.98% to N925.36 billion, compared to N740.43 billion in 2023. These losses persist following the Central Bank of Nigeria’s unification of the foreign exchange market, affecting businesses across sectors.
MTN Nigeria highlights that the depreciation of the naira significantly impacts its operations.
“By the end of 2024, the naira depreciates to N1,535 per US dollar, compared to N907.1 per US dollar at the end of 2023, leading to increased costs, particularly for tower leases and other foreign currency obligations,” says Karl Toriola, Chief Executive Officer of MTN Nigeria.
Despite these challenges, Toriola acknowledges improved dollar liquidity and reduced volatility in the foreign exchange market during the second half of the year, which provides some relief.
MTN states that without these foreign exchange losses, it records a profit after tax (PAT) of N247.3 billion.
MTN continues to expand its operations and invest in network infrastructure, supporting subscriber growth.
- The company’s subscriber base grows by 1.6% to 80.9 million, despite regulatory challenges such as the Nigerian Communications Commission’s (NCC) NIN-SIM linkage directive.
- Active data subscribers increase by 7% to 47.7 million, driven by customer engagement initiatives and improved service quality.
- The company invests N443.5 billion in capital expenditures (excluding leases) to enhance network coverage and capacity.
“Our efforts in customer engagement, service quality improvement, and network expansion contribute to the steady increase in our subscriber base,” Toriola adds.
MTN Nigeria remains optimistic about its financial recovery in 2025, with a focus on restoring a positive net asset position.
The company anticipates a 40% revenue boost from the recent tariff adjustments approved by regulators in January 2025, which it expects to support capital expenditure and overall financial stability.
“We are committed to improving our balance sheet and expect our retained income and shareholders’ equity to return to positive figures within the next 12 months. However, factors such as exchange rate fluctuations and potential consumer response to new tariffs may affect our recovery timeline,” Toriola explains.
MTN Group, the parent company of MTN Nigeria, notifies shareholders of a decline in earnings per share (EPS) for 2024, largely due to forex-related losses in Nigeria.
Despite strong operational performance, the Group anticipates a drop in headline earnings per share (HEPS). However, it views the tariff adjustments in Nigeria as a crucial step toward sustaining long-term business growth in the country’s telecom sector.
On Monday, March 17, 2025, MTN Group will release its 2024 full-year financial results.
