MTN Nigeria Communications Plc recorded a N400.4 billion loss after tax within the full yr of 2024 regardless of a 35.9% progress in income to N3.3 trillion.
That is in response to its audited monetary outcomes for the yr revealed on the NGX web site.
MTN’s monetary efficiency continues to be impacted by record-high inflation and the naira’s devaluation, exacerbating the companies’ operational bills.
The telco’s internet overseas change losses, a recurring characteristic for the reason that Central Bank of Nigeria unified the overseas change market, elevated by 24.98% to N925.36 billion from N740.43 billion in 2023.
Impacted by Naira devaluation
MTN famous that the devaluation of the Naira considerably impacted the corporate’s enterprise within the yr.
“Within the overseas change market, the naira depreciated to N1,535/US$ by the top of 2024 (from N907.1/US$ on 31 December 2023), as companies and customers continued to grapple with escalating prices.
“These headwinds considerably impacted MTN Nigeria’s prices, significantly these associated to tower leases and different overseas forex obligations,” stated Karl Toriola, chief govt officer of MTN Nigeria.
- He, nevertheless, stated that MTN took some consolation from the development in US greenback liquidity within the foreign exchange market and lowered volatility over the course of the yr, because the naira change price held comparatively steady by means of H2.
- The corporate famous it might have recorded a revenue after tax (PAT) of N247.3 billion if not for its internet overseas change loss.
Subscriber progress
MTN stated it made vital progress in driving the expansion of business operations, boosted by its ongoing investments within the protection and capability of its community to accommodate visitors progress and improve the standard of service.
- In keeping with the corporate, this was a significant focus of its N443.5 billion capex (ex-leases) within the yr.
- MTN’s subscriber base climbed additional to 80.9 million, up 1.6%, regardless of the results of the Nigerian Communications Fee’s (NCC) industry-wide directive on NIN-SIM registration.
- Likewise, energetic information subscribers grew by 7% to 47.7 million.
“Our diligent gross connection and churn administration initiatives, together with ongoing innovation in our customer worth propositions, supported the expansion of our subscriber base,” Toriola stated.
Future outlook
The telco stays upbeat about its future outlook and is concentrated on restoring a constructive internet asset place in 2025.
The telco highlighted that the current tariff hike will enhance its 2025 income by at the very least 40 p.c and assist it improve its CapEx depth.
“By way of our steadiness sheet, we purpose for a restoration in our retained earnings and shareholders’ fairness positions to constructive balances throughout the subsequent 12 months.
“Nonetheless, the near-term uncertainties in our macro setting, together with change price and potential worth elasticity from the brand new tariff implementation, could affect the trajectory of our restoration. We are going to monitor developments and replace our stakeholders as acceptable whereas we proceed to drive our progress ambitions,” the MTN CEO acknowledged.
What you need to know
MTN Group, the mum or dad physique of MTN Nigeria, had in a buying and selling assertion launched on Thursday, notified its shareholders of a major decline in its earnings per share (EPS) for the total yr that ended on 31 December 2024, primarily as a consequence of foreign exchange losses recorded from Nigeria.
- The Group additionally expects its headline earnings per share (HEPS) to say no regardless of the corporate’s robust underlying efficiency.
- It, nevertheless, acknowledged that the approval of tariff changes by regulators in Nigeria, introduced in January 2025, was a major milestone in guaranteeing the long-term sustainability of its enterprise and the telecoms {industry} within the nation.
- The MTN Group’s monetary outcomes for the total yr of 2024 are anticipated to be introduced on or about Monday, 17 March 2025.
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