MTN Nigeria has disclosed a substantial after-tax loss of N1,114.44 billion for the fiscal year that ended on December 31, 2024. This loss was mainly caused by the devaluation of the naira, which resulted in higher foreign exchange losses and adversely affected the company’s earnings. The loss outlined in the company’s audited financial statements, released on Thursday, represents a 192 percent increase from the N380.02 billion loss recorded in 2023.
The company, which caters to over 80 million customers, noted that the sharp drop in the naira significantly influenced its foreign exchange exposure. Foreign exchange losses surged to N925 billion, compared to N740 billion the prior year. By the end of 2024, the naira had fallen to N1,535/$, down from N907/$1 at the conclusion of 2023. Even with the overall loss, MTN Nigeria saw its revenue climb by 36 percent, reaching N3.36 trillion in 2024, an increase from N2.47 trillion in 2023. This growth was credited to the constant demand for data and digital services.
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The financial report pointed out that “Foreign exchange losses resulting from the revaluation of foreign currency-denominated debts led to a loss after tax of N1,114.4 billion (2023: N380 billion loss), although Q4 reported a positive outcome with a profit after tax of N265.5 billion.” The company noted negative retained earnings of N208.5 billion, showing an improvement compared to the December 2023 figure of negative N208 billion and a better standing than the June 2024 balance of negative N314.2 billion.
Operating profit, which indicates profitability from MTN’s primary business activities, was N918.2 billion, representing a modest rise of 0.46 percent from N914.6 billion in the previous year. However, the positive outcomes from operations were eclipsed by foreign exchange losses.
In his comments, MTN Nigeria CEO Karl Toriola expressed confidence in the company’s ability to withstand challenges in FY 2024, highlighting a strong dedication to growth and cost management despite significant macroeconomic hurdles, such as record-high inflation and persistent volatility in currency and energy prices. He also recognized the recent approval of tariff adjustments by regulators, stressing their significance for the industry’s sustainability and the necessity to tackle the company’s negative capital situation. This has left customers wondering if this was one of the reasons why they say a 400% increase in the price of purchase data.
Founded on November 8, 2000, MTN Nigeria Communications Plc received a license from the Nigerian Communications Commission on February 9, 2001, to operate GSM cellular network systems and related services throughout Nigeria, officially starting operations on August 8, 2001.
