MTN Nigeria has reported a significant loss after tax of N400.44 billion for the year ended December 31, 2024, marking a dramatic 192% increase from the N137.02 billion loss recorded in 2023.
The telecom operator attributed the loss to the sharp devaluation of the naira, which led to increased foreign exchange losses and negatively impacted the company’s earnings.
The naira’s depreciation, which saw the exchange rate rise to N1,535/$1 by the end of 2024 from N907/$1 in 2023, significantly affected MTN’s forex exposure. The company reported a surge in forex losses, reaching N925 billion, up from N740 billion in 2023.
Despite the financial loss, MTN’s revenue rose by 36% in 2024, reaching N3.36 trillion, compared to N2.47 trillion in the previous year. This increase was primarily driven by strong demand for data and digital services.
Key points from MTN’s 2024 report include:
- Forex losses from the revaluation of foreign currency-denominated obligations led to a loss after tax of N400.44 billion.
- Operating profit from core business activities remained relatively flat, with a slight increase to N778.2 billion from N774.6 billion in 2023.
- The company also reported negative retained earnings of N607.5 billion, improving from N727.2 billion in June 2024.
MTN Nigeria’s CEO, Karl Toriola, expressed optimism despite the challenging macroeconomic environment, which included high inflation, currency volatility, and energy price fluctuations. He highlighted the resilience of the business and the importance of recent tariff adjustments approved by the authorities for the sustainability of the telecom industry.
The company continues to focus on executing its strategy and creating long-term value for stakeholders, while managing its costs amidst the ongoing economic challenges.
