MTN Nigeria Communications Plc has announced a staggering loss after tax of N400.4 billion for the full year of 2024, despite achieving a 35.9% increase in revenue, which rose to N3.3 trillion. The audited financial results, published on the Nigerian Exchange (NGX) website, highlight the significant challenges the telecom giant faced amid record-high inflation and the sharp devaluation of the naira.
Economic Headwinds Weigh on Performance
The company’s financial performance was heavily impacted by Nigeria’s macroeconomic environment, particularly the devaluation of the naira and rising operational costs. MTN reported a 24.98% increase in net foreign exchange losses, which climbed to N925.36 billion in 2024, up from N740.43 billion in 2023. These losses were primarily driven by the Central Bank of Nigeria’s decision to unify the foreign exchange market, leading to increased costs for tower leases and other foreign currency obligations.
Karl Toriola, CEO of MTN Nigeria, noted that the naira’s depreciation to N1,535/US$ by the end of 2024, compared to N907.1/US$ at the end of 2023, significantly affected the company’s operations. However, he expressed some optimism about improved US dollar liquidity and reduced exchange rate volatility in the second half of the year, which helped stabilize the naira to some extent.
Subscriber Growth and Network Investments
Despite the financial challenges, MTN Nigeria made significant strides in expanding its subscriber base and enhancing network capacity. The company invested N443.5 billion in capital expenditure (CapEx) to improve network coverage and service quality. As a result, its subscriber base grew by 1.6% to 80.9 million, while active data subscribers increased by 7% to 47.7 million.
Toriola attributed this growth to the company’s focus on customer value propositions and effective management of gross connections and churn rates. He emphasized that MTN’s ongoing investments in infrastructure were critical to accommodating traffic growth and maintaining service quality.
Future Outlook and Recovery Plans
Looking ahead, MTN Nigeria remains optimistic about its ability to restore a positive net asset position in 2025. The company highlighted that its recent tariff adjustments, approved by regulators in January 2025, are expected to boost revenue by at least 40% and support increased capital expenditure.
Toriola stated, “We aim for a recovery in our retained income and shareholders’ equity positions to positive balances within the next 12 months. However, near-term uncertainties, including exchange rate fluctuations and potential price elasticity from the new tariff implementation, may impact our recovery trajectory.”
Parent Company’s Warning
MTN Group, the parent company of MTN Nigeria, also issued a trading statement warning shareholders of a significant decline in earnings per share (EPS) for the full year ending December 31, 2024. The decline was primarily attributed to foreign exchange losses incurred in Nigeria. Despite these challenges, the Group acknowledged that the tariff adjustments in Nigeria were a crucial step toward ensuring the long-term sustainability of its operations and the broader telecom industry.
MTN Group’s full-year financial results are expected to be released on or around March 17, 2025. As MTN Nigeria navigates a challenging economic landscape, its ability to adapt to macroeconomic pressures and leverage regulatory support will be critical to its recovery and future growth.
