• Thursday, May 30, 2024
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MTN declares second successive loss as inflation, weak naira bites

MTN, FIRS in unending legal battle over fine

MTN Nigeria Communications Plc has reported a second successive loss after declaring a loss after tax of N392.7 billion for the first quarter of 2024.

Despite growing its service revenue by 32.0 percent to N747.3 billion year-on-year, the telco recorded its second loss since it was listed on the Nigerian Exchange. It disclosed this in its earnings statement for the first quarter of 2024.

It noted that its net loss for the quarter further increased its accumulated losses and negative shareholders’ funds to N599.2 billion and N434.7 billion, respectively. It highlighted that its Profit after tax adjusted for the net forex loss declined by 57.8 percent to N47.1 billion.

Read also: MTN’s data revenue up 53% on internet traffic surge

“Further adjusting for the impact of the naira devaluation in opex, PAT would have been down by 5.3 percent to N105.6 billion,” MTN said. The telco’s net foreign exchange loss stood at N656.37 billion.

Karl Toriola, MTN Nigeria’s chief executive officer, noted that severe macroeconomic headwinds overshadowed a solid operating performance.

He said: “The operating environment in the first quarter remained very challenging, with rising inflation and continued naira depreciation off an already low base.”

Read also: MTN’s FX-induced loss steals shine of record Q1 performance

He stated that the naira’s devaluation and record-high inflation have impacted the operating environment for businesses in Nigeria.

“These factors have caused significant difficulties for businesses operating in Nigeria, including MTN Nigeria, putting additional pressure on consumers, the cost of doing business, and further foreign exchange (forex) losses,” he added.

In 2023, MTN declared its first loss after tax of N137 billion. Its retained earnings and shareholders’ fund fell to negative N208.0 billion and N40.8 billion, respectively.

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