MTN Nigeria Communications Plc has announced its second consecutive loss, reporting a loss after tax of N392.7 billion for the first quarter of 2024.
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Despite achieving a 32.0 percent growth in service revenue to N747.3 billion year-on-year, the telecommunications company recorded its second loss since its listing on the Nigerian Exchange. This information was disclosed in its earnings statement for the first quarter of 2024.
The company indicated that its net loss for the quarter contributed to its accumulated losses and negative shareholders’ funds, which now stand at N599.2 billion and N434.7 billion, respectively. It was noted that its Profit after tax, adjusted for the net forex loss, declined by 57.8 percent to N47.1 billion.
MTN remarked, “Further adjusting for the impact of the naira devaluation in operating expenses, PAT would have decreased by 5.3 percent to N105.6 billion.” The telco reported a net foreign exchange loss of N656.37 billion during the period.
Karl Toriola, CEO of MTN Nigeria, observed that strong operational performance was hindered by significant macroeconomic challenges.
He remarked, “The operational landscape in the initial quarter remained extremely challenging, marked by escalating inflation and ongoing depreciation of the naira from an already weakened position.”
He highlighted that the devaluation of the naira and the unprecedented rise in inflation have significantly impacted the business environment in Nigeria. “These factors have presented substantial challenges for enterprises operating in Nigeria, including MTN Nigeria, adding further strain on consumers, the cost of operations, and leading to increased foreign exchange losses,” he elaborated.
In 2023, MTN reported its inaugural loss after tax amounting to N137 billion. Its retained earnings and shareholders’ funds plummeted to negative N208.0 billion and N40.8 billion, respectively.