MTN Hit by Naira Devaluation as it Records Staggering N400 Billion Loss
- Despite being the biggest listed company on Nigerian Exchange, MTN Nigeria has suffered major losses
- The 2024 full year financial report revealed a staggering loss after tax, more than double the previous year
- The company recently led the implementation of the tariff hike approved by the Nigerian Communications Commission (NCC)
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
MTN Nigeria has reported a loss of N400.44 billion after taxes, in the 2024 financial year.
The full-year financial report for 2024 shows that the loss was majorly due to naira devaluation in the foreign exchange market and deeply affected the company’s earnings.
This is more than double the loss recorded in 2023, when the company announced a N137.02 billion loss after taxes.
The report showed that despite having over 80 million customers in Nigeria, the naira devaluation from N907/$1 as of December 31, 2023, to N1,535/$ by the end of 2024 took a deep cut into the company’s earnings.
Source: Getty Images
Due to the large FX exposure, the forex losses went from N740 billion in 2023 to N925 billion in 2024.
MTN grows revenues by 36%
The PUNCH reports that increased demand for data and internet services drove MTN revenue up from N2.47 trillion in 2023 to N3.36 trillion in 2024. This marked a 36% revenue growth year-on-year.
Operating profit also grew marginally from N774.6 billion in 2023 to N778.2 billion in 2024, an increase too little to withstand the force of the naira devaluation.
The report read;
“Forex losses arising from the revaluation of foreign currency-denominated obligations resulted in a loss after tax of N400.4bn (2023: N137 billion loss), albeit with a positive result in Q4 (PAT of N114.5bn). Consequently, we reported negative retained earnings of N607.5bn (December 2023: negative N208bn), which was an improvement from the June 2024 balance of N727.2bn.”
MTN remains resilient despite losses
Now in its third decade of operations in Nigeria, the company remains resilient despite taking so many losses for consecutive years.
The CEO of MTN Nigeria, Karl Toriola noted that this resilience is reflective of a strong commitment to managing costs and driving growth despite the harsh macroeconomic environment in Nigeria.
Source: UGC
Toriola reiterated his commitment to creating value for the shareholders and thanked the government for finally approving higher tariffs, after more than a decade of unchanged prices.
He noted that it would be of critical help to sustain the company amid high inflation, naira devaluation, and surging energy prices.
MTN increases tariff hike
In related news, MTN Nigeria has implemented new pricing for all its call, SMS, and data plans across all bundles.
The new data pricing structure, published on MTN's website, saw some plans increase by over 200%, even though the regulator approved a 50% increase.
The Nigerian Communications Commission recently approved telecom tariff adjustments by 50%, the first in over a decade.
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Source: Legit.ng
