MTN Nigeria Plc, one of the leading telecom operators in the country, faced a significant financial setback in 2023. The company reported a loss before tax of N177.8bn, a stark contrast to the pre-tax profit of N518.8bn in the previous year. This drastic shift was primarily attributed to a substantial forex loss of N740.4bn, stemming from the sharp devaluation of the naira.
The company’s audited results for the year ended 31 December 2023 revealed a reported loss after tax amounting to N137bn, in contrast to the restated Profit After Tax (PAT) of N348.7bn reported in 2022. This financial downturn also led to negative retained earnings and shareholders’ equity, reported at N208bn and N40.8bn, respectively, as of December 2023.
MTN highlighted that the significant devaluation of the naira in 2023 had a profound impact on its operations, particularly on operating expenses and net finance costs. The company noted that the movement in the exchange rate, following changes in the Nigerian forex operations announced by the Central Bank of Nigeria, significantly affected its financial performance.
Despite the challenging operating environment characterized by rising inflation, currency devaluation, and foreign exchange shortages, MTN Nigeria’s CEO, Karl Toriola, emphasized the company’s continued investment in network infrastructure to meet the growing demand for data and enhance coverage. This strategic focus on value-based capital allocation and efficiencies enabled the company to accelerate the growth of its commercial operations.
Key highlights from the report included an increase in total subscribers to 79.7 million, active data users to 44.6 million, and active mobile money (MoMo PSB) wallets to 5.3 million. Service revenue also saw a significant increase to N2.5tn, while Earnings before interest, tax, depreciation, and amortization (EBITDA) grew to N1.2tn, despite a decrease in EBITDA margin.
MTN Nigeria’s resilience in the face of economic challenges underscores its commitment to providing quality services to its customers and driving growth in the telecommunications sector. As the company navigates the evolving landscape of the Nigerian market, its strategic investments and operational efficiencies position it for continued success in the future.
