MTN Nigeria Posts Profit in Q3 Despite Ongoing Financial Challenges
In a recent financial report, MTN Nigeria announced a profit after tax of N4.1 billion for the third quarter ended September 2024. This marks a slight improvement for the telecom operator, which has been navigating ongoing financial challenges. Despite this profit, the company’s overall financial results for the nine-month period revealed a significant loss after tax of N514.9 billion, primarily driven by substantial foreign exchange losses.
According to MTN Nigeria’s financial report, the adjusted profit after tax stood at N118.5 billion, reflecting a 59.2 percent decrease compared to the previous year. Notably, without the foreign exchange losses, the company would have reported a profit during this period.
MTN Nigeria’s CEO, Karl Toriola, expressed optimism about enhancing operational efficiency and driving growth in the company’s commercial operations. Toriola stated, “In the first nine months of 2024, we sustained the growth in our underlying operating performance—underpinned by our resilient business model and operational agility—despite challenging conditions.”
Despite having 77 million subscribers, MTN Nigeria faces challenges due to higher inflation and interest rates, which have weighed on consumers’ spending power and impacted business activity. The naira’s depreciation, closing at N1,542/$ in September 2024 compared to N907/$ in December 2023, has further exerted pressure on business activities. However, the company noted that improvements in liquidity in the foreign exchange market have helped reduce its exposure to foreign currency-denominated obligations.
MTN Nigeria’s report also revealed a decrease in total subscribers by 0.9 percent, bringing the subscriber base to 77 million from 78 million due to the implementation of National Identification Number and Subscriber Identification Module regulations. Additionally, the number of active mobile money (MoMo PSB) wallets fell by 21.8 percent to 2.8 million, further impacting revenue streams.
Despite these challenges, MTN Nigeria experienced a 33.6 percent increase in service revenue, reaching N2.4 trillion, showcasing the resilience of its core business operations. The number of active data users also rose by 5.1 percent, totaling 45.3 million, highlighting continued demand for data services.
As MTN Nigeria continues to navigate the complexities of the Nigerian market, the company remains committed to enhancing operational efficiency and driving growth in its commercial operations.
