By DAYO ADESULU
MTN Nigeria has reported a staggering N400.44bn loss after tax for the fiscal year ended December 31, 2024, as the devaluation of the naira significantly increased foreign exchange losses and impacted the company’s bottom line.
Telecom giant faces 192% surge in losses due to forex pressures despite 36% revenue growth.
The loss, disclosed in the company’s audited financial statements released on Thursday, marks a 192% increase from the N137.02bn loss recorded in 2023. The telecom operator, which serves over 80 million customers, stated that the sharp depreciation of the naira amplified its forex exposure, with foreign exchange losses skyrocketing to N925bn, compared to N740bn in the previous year.
Naira Depreciation and Forex Losses Weigh on MTN’s Performance
MTN Nigeria highlighted that the naira depreciated from N907/$ at the end of 2023 to N1,535/$ by the close of 2024. This substantial drop exerted immense pressure on the company’s financial position.
Despite the heavy losses, MTN Nigeria’s revenue surged by 36% to N3.36tn in 2024, up from N2.47tn in the previous year. This revenue growth was primarily driven by sustained demand for data and digital services across its network.
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Part of the report stated, “Forex losses arising from the revaluation of foreign currency-denominated obligations resulted in a loss after tax of N400.4bn (2023: N137bn 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.”
Operating Profit and Industry Challenges
MTN Nigeria’s operating profit—the earnings from its core telecom business—stood at N778.2bn, reflecting a marginal 0.46% increase from N774.6bn in 2023. However, these gains were entirely offset by forex losses, further straining the company’s overall financial performance.
MTN Nigeria CEO Reacts to Financial Performance
Commenting on the company’s 2024 financial performance, MTN Nigeria CEO, Karl Toriola, expressed confidence in the resilience of the business despite economic challenges.
“We are encouraged by the resilience of our business in FY 2024, which reflects our strong commitment to driving growth and managing costs. Despite facing significant macroeconomic headwinds, including record-high inflation, as well as ongoing currency and energy price volatility, we remained focused on executing our strategy and creating long-term value for our stakeholders.”
Toriola also acknowledged recent tariff adjustments, stating that they are essential for the sustainability of the telecom industry and crucial in addressing MTN Nigeria’s negative capital position.
Company Background and Market Position
MTN Nigeria Communications Plc, incorporated on November 8, 2000, operates as one of Nigeria’s leading telecommunications providers. The company received a licence from the Nigerian Communications Commission (NCC) on February 9, 2001, to build and manage GSM cellular network systems across the country. MTN officially launched operations on August 8, 2001, and has since grown into one of the most dominant players in Nigeria’s telecom sector.
Conclusion
While MTN Nigeria’s revenue growth remains strong, the impact of the naira devaluation and forex losses continues to pose serious challenges. As the company navigates these economic pressures, industry stakeholders will be closely watching for further policy adjustments and financial recovery strategies to stabilize MTN’s operations in Nigeria.
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Dayo Adesulu, Online Editor, SEO Expert.
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