MTN Nigeria experiences ₦137 billion loss in FY 2023 as Naira devaluation shrinks margins

MTN Nigeria experiences ₦137 billion loss in FY 2023 as Naira devaluation shrinks margins

MTN Nigeria reported a loss for the total yr 2023, its first in three years, after a Naira devaluation and rising value of doing enterprise ate into its margins. The telco reported a loss after tax of ₦137.0 billion in 2023 in comparison with earnings of ₦348.7 billion in 2022.

In line with a full-year 2023 report launched this morning, cost of tower lease value—listed to the US greenback however invoiced and paid in naira—comprised most of its international foreign money publicity in working bills. 

“In June 2023, the Central Financial institution of Nigeria (CBN) adopted a extra liberal international alternate administration system,” mentioned Karl Toriola, MTN Nigeria’s CEO. “The price of doing enterprise in Nigeria, and for MTN Nigeria particularly, considerably elevated the prices in relation to our tower leases.”

Key takeaways

  • MTN has 79.7 million cell subscribers in FY 2023
  •  Energetic cell cash (MoMo PSB) wallets elevated by 163% to five.3 million
  • FinTech income grew by 2.4%

MTN Nigeria operates in a excessive inflationary atmosphere, additional worsened by a foreign money disaster and rising power prices. 

Nonetheless, MTN will  develop its  non-core providers, reminiscent of Cloud, Unified Communications, and IoT functions, to seize future alternatives. This along with its rising 4G and 5G companies. 

“We’re actively participating the regulators to resolve the USSD dispute with banks,” an announcement from its financials learn.

Cell providers

The telco’s monetary assertion additionally reported that its providers income grew by 22.4%, pushed primarily by knowledge income development of 39.8%. Voice income was up by 9.7%. The telco’s cell subscribers elevated by 5.3% to 79.7 million, underpinned by elevated gross connections and churn administration initiatives. Energetic knowledge customers grew by 12.7% to 44.6 million.

Energetic cell cash (MoMo PSB) wallets elevated by 163% to five.3 million, powered by 326,000 MoMo brokers, and 324,000 retailers in its ecosystem. TechCabal had just lately reported that the MoMo service nonetheless requires extra adoption. Nevertheless, it introduced a partnership with Mastercard yesterday to deepen that side. Nonetheless, its digital income arm noticed a 69.9% improve to ₦37 billion, whereas its fintech income grew by 2.4%.

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