MTN Nigeria Reports N514.9bn Nine-Month Loss

MTN Nigeria has revealed a staggering nine-month loss of N514.9 billion, primarily due to significant foreign exchange losses.

Though it reported a modest profit after tax of N4.1 billion for the third quarter ending September 2024, a slight reprieve amid its broader financial turmoil. According to MTN Nigeria’s recent financial statement, its adjusted profit after tax stood at N118.5 billion, marking a 59.2 percent decline from the previous year. This adjusted figure suggests that if not for forex losses, the company would have reported profits for the period.

The report cited a depreciating naira, which closed at N1, 542/$ in September 2024 compared to N907/$ in December 2023, as a key factor exacerbating the financial strain. The weakened local currency, coupled with high inflation and rising interest rates, put further pressure on consumer spending and overall business activity.

Mr. Karl Toriola, MTN Nigeria’s Chief Executive Officer (CEO), remarked on the resilience of the company amidst the harsh economic conditions, stating: “In the first nine months of 2024, we sustained the growth in our underlying operating performance—underpinned by our resilient business model and operational agility—despite challenging conditions.”

MTN’s report also pointed to a 0.9 percent decrease in its subscriber base, dropping to 77 million from 78 million, influenced by the enforcement of National Identification Number (NIN) and Subscriber Identification Module (SIM) registration regulations. Additionally, active mobile money (MoMo PSB) wallets fell sharply by 21.8 percent to 2.8 million, impacting revenue generation in the sector.

Despite these challenges, MTN’s core operations displayed signs of strength. Service revenue increased by 33.6 percent, reaching N2.4 trillion, underscoring robust demand. Moreover, the number of active data users climbed by 5.1 percent to 45.3 million, reflecting the sustained need for data services.

MTN noted some positive developments, such as improvements in liquidity within the foreign exchange market, which have helped mitigate exposure to foreign currency-denominated obligations. However, the company faces ongoing challenges as it seeks to balance operational efficiency with profitability amid a volatile economic landscape.