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MTN Nigeria posts N514.9 billion loss in 9 months of 2024, blame Naira depreciation

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MTN Nigeria recorded a loss after tax of N514.9 billion for the first nine months of 2024, primarily attributed to naira depreciation, which increased foreign currency-denominated obligations.

This is according to the company’s unaudited results for the nine months ended 30 September 2024 released on Thursday.

The loss represents a 3,335% increase when compared with the N15.0 billion loss recorded in the same period of 2023.

Consequently, MTN’s retained earnings and shareholders’ equity turned negative, amounting to N723.0 billion and N573.6 billion, respectively, as of September 2024.

In his comments on the results, MTN Nigeria CEO Karl Toriola noted that had it not been for the forex revaluation losses, the company’s profit after tax (PAT) would have been N118.5 billion, down 59.2% year-on-year.

Adjusting further for forex impact on operating expenses, PAT would have risen 13.3% to N367.1 billion.

During the period, MTN Nigeria’s total subscriber base saw a slight decline of 0.9% to 77.0 million, primarily influenced by compliance with NIN-SIM regulations.

However, EBITDA declined by 5.3% year-on-year to N860.2 billion, with the EBITDA margin decreasing by 14.9 percentage points to 36.3%.

Commenting on the results, Toriola, said despite forex challenges, MTN Nigeria’s positive free cash flow, supported by favourable working capital movements and reduced capital expenditure, underscores its resilience in navigating the current economic landscape.

“As we manage the effects of the ongoing macroeconomic headwinds on our business, we remain focused on initiatives to accelerate our earnings recovery profile, strengthen our balance sheet, and restore our net asset position faster,” he said.

Toriola pointed out that MTN has continued to manage the effects of the Nigerian Communications Commission’s (NCC) industry-wide NIN-SIM directive, which has impacted the evolution of its customer base.

Having complied with the regulatory directive to disconnect some lines, the company is now working towards reconnecting those affected to reduce churn while extracting increased value from the market.

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