MTN Earnings Hit by N400bn Loss as Naira Devaluation Takes Toll
MTN Nigeria reported a N400.44bn loss after tax for the 12 months ended December 31, 2024, because the devaluation of the naira drove up international trade losses and weighed on the corporate’s earnings.
The loss, disclosed within the firm’s audited monetary statements launched on Thursday, represents a 192 per cent enhance from the N137.02bn loss recorded in 2023.
The operator with over 80 million clients mentioned the sharp depreciation of the naira considerably impacted its international trade publicity, with foreign exchange losses surging to N925bn from N740bn within the earlier 12 months.
The naira depreciated to N1,535/$ by the top of 2024 from N907/$1 as of December 31, 2023, MTN famous.
Regardless of the consequence, the telco’s income rose by 36 per cent to N3.36tn in 2024, up from N2.47tn within the earlier 12 months, pushed by continued demand for information and digital companies.
A part of the report said, “Foreign exchange losses arising from the revaluation of international currency-denominated obligations resulted in a loss after tax of N400.4bn (2023: N137 billion loss), albeit with a optimistic end in This fall (PAT of N114.5bn).
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“Consequently, we reported adverse retained earnings of N607.5bn (December 2023: adverse N208bn), which was an enchancment from the June 2024 stability of N727.2bn.”
Working revenue, the revenue from the corporate’s core enterprise actions—stood at N778.2bn, representing a marginal enhance of 0.46 per cent from N774.6bn within the earlier 12 months. Nevertheless, the positive aspects had been worn out by foreign exchange losses.
In his remarks, MTN Nigeria CEO, Karl Toriola mentioned, “We’re inspired by the resilience of our enterprise in FY 2024, which displays our robust dedication to driving progress and managing prices.
“Regardless of going through important macroeconomic headwinds, together with record-high inflation, in addition to ongoing foreign money and power value volatility, we remained targeted on executing our technique and creating long-term worth for our stakeholders.
“We’re grateful to the authorities for the latest approval of tariff changes, that are important for our business’s sustainability and essential for addressing our adverse capital place.”
MTN Nigeria Communications Plc was integrated on November 8, 2000, as a non-public restricted legal responsibility firm.
It was granted a licence by the Nigerian Communications Fee on February 9, 2001, to undertake the enterprise of constructing and working GSM mobile community techniques and different associated companies nationwide in Nigeria.
The corporate commenced operations on August 8, 2001.