MTN Nigeria Plc net loss grew by more than 192% year on year to N400 billion at the end of financial year 2024, according to its audited report. Details from the report revealed that the telecom company grew revenue by 36.1% year on year to N3.360 trillion from N2.468 trillion in the comparable year in 2023.
Its improved top line performance was bolstered by strong data and voice revenue, up by 49.1% and 14.5% respectively. In the same year, MTN Nigeria reported a significant surge in expenses, which toned down the beauty of the telecom impressive revenue growth.
In 2024, MTN Nigeria expenses surged by 61.7% year on year to settle at N2.047 trillion from N1.266 trillion in 2023. The breakdown showed that its costs of sales in 2024 increased by 30.1% to N528.187 billion from N406 billion. Reflecting high inflationary environment, MTN Nigeria’s operating expenses skyrocketed by 76.6% to N1.519 trillion from N860 billion in 2023.
A significant growth in net finance costs drained the earnings strength and weaken profitability. Bombed by about 145% surge in lease costs, net finance costs rose by 91% year on year to N403.207 billion from N211.112 billion. Its borrowing costs also increase by 37.1% to N172 billion in the same year.
Net foreign exchange losses increased by 25% to N925.361 billion, from N740 billion as a results of significant foreign currency priced liabilities. About N562 billion was realised as FX loss in 2024, which was 438% above N104.446 billion FX loss realised in 2023.
MTN Nigeria said the improved liquidity in the forex market enabled the telecom company to reduce the outstanding LC US$ obligations by 95% to approximately US$20.8 million, tapering the impact of future naira depreciation and the associated finance costs.
It said the reduction accounted for approximately 86% of the realised net forex losses of N561.9 billion recorded in the period, while the unrealised portion amounted to N363.4 billion.
Speaking to the result, MTN Nigeria CEO Karl Toriola said, “We are encouraged by the resilience of our business in FY 2024, which reflects our strong commitment to driving growth and managing costs.
“Despite facing significant macroeconomic headwinds, including recordhigh inflation, as well as ongoing currency and energy price volatility, we remained focused on executing our strategy and creating long-term value for our stakeholders.
“We are grateful to the authorities for the recent approval of tariff adjustments, which are essential for our industry’s sustainability and crucial for addressing our negative capital position.
“Navigating a challenging operating environment Inflation reached 34.8% in December 2024, averaging 33.2% for the year, significantly impacting operational costs and consumer purchasing power.
“The Monetary Policy Rate (MPR) was raised on multiple occasions throughout the year, reaching 27.5%, aimed at counteracting naira volatility and elevated inflation. This increased our cost of borrowing.
“In the foreign exchange market, the naira depreciated to N1,535/US$ by the end of 2024 (from N907.1/US$ on 31 December 2023), as businesses and consumers continued to grapple with escalating costs. However, we took some comfort from the improvement in US dollar liquidity in the forex market and reduced volatility over the course of the year, as the naira exchange rate held relatively stable through H2”.
