Forex volatility drives MTN Nigeria’s loss after tax of N519.6bn H1 2024
MTN Nigeria Communications Plc reported a loss after tax of N519.06 billion for the first half of 2024 financial year, due to high inflation rate and a depreciation of Naira.
This represents a drop of 506.42 per cent compared with a loss of N85.594 billion in the comparative period of last year.
The half year result submitted at the Nigerian Exchange showed that the company recorded loss before tax of $751.292 billion representing a drop of 529.05 per cent compared to loss of $119.433 billion reported in the same period of last year while operating profit down from N421.042 billion to N304.548 billion.
MTN also grew its customer base to 79.4 million despite barring 8.6 million subscribers in first half of 2024.
Active mobile money (MoMo PSB) wallets increased by 73.9nper cent to 5.5 million while FinTech revenue grew by 11 per cent. MTN’s Data revenue grew to N727 billion, outpacing voice revenue of N632 billion while Mobile money wallets increased to 5.5 million from 3.1 million recorded in the first half of 2023.
On the performance of the company, the Chief Executive Officer of MTN Nigeria, Mr. Karl Toriola said “The macroeconomic conditions in Nigeria have been challenging during this period. The country has been grappling with rising inflation and the continued depreciation of the naira against the US dollar and other currencies.
“The inflation rate reached 34.2 per cent in June, with an average rate of 32.8 per cent for the first half of the year, while the naira closed June 2024 at N1,505/$ (December 2023: N907/$) at the Nigerian Autonomous Foreign Exchange Market”, the CEO said.
Primarily offering cellular network access and ICT solutions, MTN Nigeria describes itself as a proudly Nigerian company with a rich African heritage, and says it is committed to using it technology and assets to help build a better tomorrow, where businesses expand, the economy grows, and people make progress.
The largest mobile telephone provider in Nigeria, the company’s strategic intent is to lead digital solutions for Africa’s progress.
To mitigate these Forex exposures, MTN has reduced its outstanding letters of credit in dollars to $100 million by June 2024. It is also renegotiating lease agreements with IHS towers.
On Monday, the company closed its retail outlets nationwide after some of its offices were vandalised by angry customers whose SIM cards were blocked on Sunday.
