MTN Nigeria loses N400.44 billion after tax in 2024 to naira devaluation

• MTN Nigeria lost N400.44 billion after tax in 2024 to naira devaluation
• The company said its revenue in 2024 was also eroded by naira devaluation
• MTN Nigeria’s CEO said the company remains resilient and committed to creating value for stakeholders despite the economic headwinds

MTN Nigeria lost N400.44 billion after tax for the year ended December 31, 2024, due to the devaluation of the naira.

According to the company’s audited financial statements released on Thursday, February 27, the loss represents a N263.42 billion or 192 per cent increase from the N137.02 billion loss recorded in 2023.

The company added that the devaluation of the naira increased its foreign exchange losses to N925 billion from N740 billion recorded in 2023, and impacted its earnings.

MTN Nigeria noted that the naira depreciated to N1,535/$ by the end of 2024 from N907/$1 as of December 31, 2023.

“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), which was an improvement from the June 2024 balance of N727.2 billion,” the report read in part.

Telco’s revenue in 2024 eroded by naira devaluation

The telecommunications giant reported a 36 per cent revenue increase to N3.36 trillion in 2024, up from N2.47 trillion in the previous year.

The revenue was driven by continued demand for data and digital services.

Its operating profit, the profit from the company’s core business activities, stood at N778.2 billion, representing a 0.46 per cent increase from N774.6 billion recorded in 2023.

However, the company’s profits were wiped out by forex losses.

We remain resilient – MTN Nigeria CEO

In his remarks, the Chief Executive Officer (CEO) of MTN Nigeria, Karl Toriola, said the company remains resilient and committed to creating value for stakeholders despite the economic headwinds.

He also lauded the recently approved 50 per cent increase in telcom tariff, which saw the telco increase prices for data and calls, saying the adjustment was crucial to addressing the company’s negative capital position and address challenges in the industry.

 Toriola said, “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.

“We are grateful to the authorities for the recent approval of tariff adjustments, which are essential for our industry’s sustainability and crucial for addressing our negative capital position.”

MTN Nigeria loses N514.9bn after tax in 9M 2024 to naira devaluation

Meanwhile, TheRadar earlier reported that telecommunications giant, MTN Nigeria, lost N514.9 billion after tax in the nine months of 2024 to naira depreciation, which increased its foreign currency-denominated obligations.

According to its unaudited results for the nine months ended September 30, 2024, released on Thursday, October 31, the company suffered a 3,335 per cent loss from the N15.0 billion loss recorded in the same period of 2023.