MTN Nigeria Reports N400.44bn Loss Amid Naira Depreciation and Forex Challenges
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MTN Nigeria, the country’s leading telecoms operator, has announced a N400.44 billion loss after tax for the financial year ending December 31, 2024. This represents a 123% increase from the N137.02 billion loss recorded in 2023.
In its audited financial report released on Thursday, the company attributed the steep decline in earnings to the sharp devaluation of the naira and foreign exchange (forex) losses.
MTN Nigeria disclosed that forex losses surged to N925 billion, up from N740 billion in 2023, as the naira depreciated from N907/$1 in December 2023 to N1,535/$1 by the end of 2024. Despite this, the telecom giant noted a 36% revenue increase to N3.36 trillion in 2024, compared to N2.47 trillion in the previous year, driven by sustained demand for data and digital services.
“Forex losses arising from the revaluation of foreign currency-denominated obligations resulted in a loss after tax of N400.4 billion (2023: N137 billion loss), albeit with a positive result in Q4 (PAT of N114.5 billion). Consequently, we reported negative retained earnings of N607.5 billion (December 2023: negative N208 billion), showing an improvement from the June 2024 balance of N727.2 billion,” the report stated.
Operational Gains Overshadowed by Forex Losses
MTN Nigeria recorded N778.2 billion in operating profit from its core business activities, reflecting a marginal 0.46% increase from N774.6 billion in 2023. However, these gains were largely offset by forex losses, impacting overall profitability.
CEO Karl Toriola’s Response
Commenting on the financial results, MTN Nigeria CEO Karl Toriola expressed optimism about the company’s resilience amid macroeconomic headwinds, including record-high inflation, currency fluctuations, and rising energy costs.
“Despite facing significant macroeconomic headwinds, including record-high inflation and currency volatility, we remained focused on executing our strategy and creating long-term value for our stakeholders,” Toriola stated.
He also acknowledged the 50% telecom tariff hike approval by the Nigerian Communications Commission (NCC), calling it a crucial step for industry sustainability and an essential measure to address MTN’s negative capital position.
MTN Group’s Financial Outlook
MTN Nigeria’s loss report follows a statement by its parent company, MTN Group, which warned of a significant decline in headline earnings per share (HEPS) for the full year ending December 31, 2024. The group cited foreign exchange impacts despite strong operational performance.
MTN Group estimates its HEPS will decline between 59% and 79%, while earnings per share (EPS) will increase by more than 100%. The group further explained that its HEPS was negatively affected by non-operational items amounting to -$0.39 per share, including:
🔹 Hyperinflation adjustments
🔹 Forex losses of -$0.32 per share
🔹 Impact of Nigerian naira depreciation (-$0.22 per share)
🔹 Deferred tax charges and other non-operational items
As MTN Nigeria navigates economic challenges, the company remains focused on stabilizing operations and leveraging its strong market position to sustain long-term growth.
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