MTN Nigeria, the country’s largest telecom operator, has reported a profit after tax of N4.1 billion for the third quarter ending September 2024, a small improvement against challenging financial conditions. Yet, for the broader nine-month period, MTN posted a substantial after-tax loss of N514.9 billion, mainly due to significant foreign exchange losses.
The financial report, released Wednesday, also revealed an adjusted profit after tax of N118.5 billion, marking a 59.2% drop from the previous year. This adjusted profit suggests MTN could have reported a positive balance without the heavy forex losses that impacted overall results.
The company cited pressures from rising inflation and higher interest rates, which have eroded consumers’ spending power, affecting business performance. However, MTN remains optimistic about operational efficiency and plans to drive growth within its commercial segments. The naira closed at N1,542 per dollar in September 2024, compared to N907 per dollar in December 2023, adding further financial strain. The company noted that improved liquidity in the forex market has helped reduce its exposure to foreign currency obligations, despite the steep depreciation.
Karl Toriola, MTN Nigeria’s CEO, remarked, “In the first nine months of 2024, we sustained growth in our underlying operating performance—underpinned by our resilient business model and operational agility—despite challenging conditions.”
Additional highlights from the report include a 0.9% reduction in total subscribers, bringing the count to 77 million due to NIN-SIM regulations. Active mobile money wallets also dropped by 21.8% to 2.8 million, affecting revenue. However, MTN achieved a 33.6% increase in service revenue, reaching N2.4 trillion, underscoring its operational resilience.
Data services continued to show demand, with active data users increasing by 5.1% to 45.3 million, demonstrating the importance of data to MTN’s growth strategy.
While MTN faces financial hurdles, its core business remains robust, with signs of growth and adaptation in Nigeria’s challenging economic environment.
