MTN Nigeria Plc has reported a pre-tax loss of N177.8 billion, a significant turnaround from the N518.8 billion pre-tax profit in the prior year.
The company attributes these losses to a considerable foreign currency shortfall of N740 billion, a notable increase from the N81 billion reported in 2022.
This marks the company’s first-ever loss since being listed on the Nigerian stock exchange. MTN highlights changes in the Nigerian foreign exchange market, especially the removal of the segmented/parallel structure announced by the Central Bank of Nigeria in June 2023, as a key factor behind the loss.
The use of an official exchange rate (NAFEM) of N907.11/$1 as of December 31, 2023, is mentioned, with a caution that the loss may widen if the current exchange rate between the naira and dollar persists until the end of March when Q1 results are published.
Due to substantial currency devaluation and its impact on retained earnings, MTN Nigeria has decided not to propose a final dividend payment, reflecting the year-end loss in 2023. While interim dividends of N117.48 billion were approved on July 27, 2023, at N5.60 kobo per ordinary share, shareholders have faced a year-to-date loss of 15.6%, with a 19% decline from February 1st to the present date, as MTNN closed at N222.90 on the last day of February.
Despite these challenges, MTN emphasizes maintaining strong free cash flow generation, up 11.6% YoY to N631.6 billion. The company attributes the difficult operating environment in 2023 to rising inflation, currency devaluation, foreign exchange shortages, geopolitical disruptions, and Q1 cash shortages resulting from naira redesign. The inflation rate
