MTN Nigeria has announced a loss after tax of N400.44 billion for the year ended December 31, 2024, driven by significant foreign exchange losses resulting from the devaluation of the naira.
Key Point: The telco's loss after tax surged by 192% from N137.02 billion in 2023, primarily due to foreign exchange losses of N925 billion, which offset the company's revenue growth of 36% to N3.36 trillion.
Despite the significant loss, MTN Nigeria's revenue growth was driven by continued demand for data and digital services. The company's operating profit stood at N778.2 billion, representing a marginal increase of 0.46% from the previous year.
However, the gains were wiped out by foreign exchange losses, which were exacerbated by the naira's depreciation to N1,535/$ by the end of 2024. MTN Nigeria's CEO, Karl Toriola, noted that the company remains committed to driving growth and managing costs, despite facing significant macroeconomic headwinds.
The company has expressed gratitude for the recent approval of tariff adjustments, which are essential for the industry's sustainability and crucial for addressing MTN Nigeria's negative capital position.
Highlights:
● Total subscribers increased by 1.6% to 80.9 million
● Active data users increased by 7% to 47.7 million
● Service revenue increased by 35.9% to N3.3 trillion
● Earnings before interest, tax, depreciation and amortization (EBITDA) increased by 9.2% to N1.3 trillion
● EBITDA margin decreased by 9.6 percentage points (pp) to 39.1%
● Loss after tax was N400.4 billion (Profit after tax of N114.5 billion in Q4 2024)
● Profit after tax (PAT) adjusted for the net forex loss decreased by 35.2% to N247.3 billion
● Capital expenditure (capex), excluding leases, decreased by 1.3% to N443.5 billion
● Positive free cash flow of N388.2 billion
● Final dividend: In light of the negative retained earnings, the board did not
recommend a dividend for FY 2024.
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