MTN Nigeria announced significant losses for 2024. Key factors include currency devaluation and foreign exchange losses.
Financial Performance and Causes
MTN Nigeria reported a loss after tax of N400.44bn for 2024, a 123% increase from the N137.02bn loss in the previous year. The main reasons include the devaluation of the naira and substantial forex losses. By the end of 2024, the naira depreciated to N1,535/$, which significantly impacted the company's financial results.
Revenue Increase Amid Losses
Despite financial difficulties, MTN Nigeria's revenue rose by 36% to N3.36tn in 2024, driven by the demand for digital services. Operating profit stood at N778.2bn, yet, forex losses nullified visible gains.
Outlook and Strategic Management
The CEO of MTN Nigeria expressed confidence in the business's resilience with strategies for cost management and growth. The company relies on the recent tariff increase approval from regulators. The tariff hike is seen as an essential step for the industry's sustainability.
MTN Nigeria continues to work on stabilizing its financial condition despite economic challenges. The tariff increase is part of the strategy to mitigate the impact of forex losses and inflationary pressures.
