By Abigail Philip David
MTN Nigeria has reported a N400.44 billion loss after tax for the financial year ending December 31, 2024, attributing the decline to the impact of naira devaluation, which led to significant foreign exchange losses.
The loss, disclosed in the company’s audited financial statements released on Thursday, represents a 192% increase from the N137.02 billion loss recorded in 2023.
Forex Losses Surge Amid Naira Depreciation
With over 80 million customers, MTN Nigeria stated that the sharp depreciation of the naira significantly affected its foreign exchange obligations, causing forex losses to rise from N740 billion in 2023 to N925 billion in 2024.
The company noted that the naira fell from N907/$1 at the end of 2023 to N1,535/$1 by December 2024, further straining its financial position.
Revenue Growth Despite Losses
Despite the forex challenges, MTN’s revenue grew by 36%, reaching N3.36 trillion in 2024, compared to N2.47 trillion in 2023. The growth was driven by increased demand for data and digital services.
However, the gains were offset by foreign exchange losses, resulting in negative retained earnings of N607.5 billion, compared to negative N208 billion in December 2023. The company noted an improvement from its June 2024 balance of negative N727.2 billion.
Operating Profit and CEO’s Remarks
MTN’s operating profit, which reflects earnings from its core business activities, stood at N778.2 billion, showing a marginal 0.46% increase from N774.6 billion in 2023.
Commenting on the results, MTN Nigeria CEO Karl Toriola stated:
“We are encouraged by the resilience of our business in 2024, which reflects our strong commitment to driving growth and managing costs. Despite facing macroeconomic headwinds such as record-high inflation, currency volatility, and rising energy prices, we remained focused on executing our strategy and creating long-term value for stakeholders.
Toriola also acknowledged the approval of tariff adjustments by the authorities, describing it as crucial for the telecom industry’s sustainability and for addressing MTN’s negative capital position.
Background on MTN Nigeria
MTN Nigeria Communications Plc was incorporated on November 8, 2000, as a private limited liability company.
The company was granted a license by the Nigerian Communications Commission (NCC) on February 9, 2001, to operate GSM cellular networks and other related services across Nigeria.
MTN officially began operations on August 8, 2001, and has since grown to become one of the leading telecom providers in the country.
