MTN Nigeria reported a N400.44 billion loss after tax for the year ending December 31, 2024, attributing the decline to the devaluation of the naira, which significantly increased foreign exchange losses and impacted earnings.
According to its audited financial statements released on Thursday, the company’s loss surged by 192% from N137.02 billion in 2023.
With a customer base exceeding 80 million, the telecom giant stated that the sharp depreciation of the naira worsened its foreign exchange exposure, causing forex losses to climb to N925 billion, compared to N740 billion in the previous year. The naira depreciated from N907/$1 at the end of 2023 to N1,535/$1 by December 31, 2024.
Despite the loss, MTN saw a 36% increase in revenue, rising from N2.47 trillion in 2023 to N3.36 trillion in 2024, fueled by continued demand for digital and data services.
A section of the report read: “Forex losses arising from the revaluation of foreign currency-denominated obligations resulted in a loss after tax of N400.4bn (2023: N137 billion loss), albeit with a positive result in Q4 (PAT of N114.5bn).”
It further stated: “Consequently, we reported negative retained earnings of N607.5bn (December 2023: negative N208bn), which was an improvement from the June 2024 balance of N727.2bn.”
Meanwhile, operating profit, which reflects earnings from core business activities, stood at N778.2 billion, showing a 0.46% increase from N774.6 billion in 2023. However, these gains were offset by foreign exchange losses.
Commenting on the results, 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.”
He added, “Despite facing significant macroeconomic headwinds, including record-high 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.”
Toriola also acknowledged the government’s approval of tariff adjustments, calling it essential for industry sustainability and necessary to address the company’s negative capital position.
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