MTN Nigeria Communications Plc reported a record N3.3 trillion in service revenue for the financial year ended December 31, 2024.
In the audited financial statement obtained by Investors King, this represents a 35.9% increase year-on-year.
However, the strong top-line performance was overshadowed by a N400.44 billion loss after tax caused by foreign exchange losses and rising operational costs.
The telecom giant’s financial results reflect the impact of Nigeria’s macroeconomic challenges, including record-high inflation, currency depreciation and increased borrowing costs.
The naira’s sharp devaluation—from N907.1/$ at the end of 2023 to N1,535/$ by December 2024—weighed heavily on MTN Nigeria’s balance sheet, increasing the company’s foreign exchange losses by 24.98% to N925.36 billion.
Despite these challenges, MTN Nigeria maintained commercial momentum, increasing its subscriber base by 1.6% to 80.9 million, while active data users grew by 7% to 47.7 million.
The surge in data demand remained a key revenue driver with data traffic rising 42.9% and average monthly usage per subscriber climbing 33.6% to 11.2GB.
Karl Toriola, CEO of MTN Nigeria, acknowledged the challenges but expressed confidence in the company’s long-term strategy and resilience.
“We are encouraged by the resilience of our business, despite the impact of inflation, exchange rate volatility, and increased operational costs. The recent tariff adjustments will support our efforts to restore profitability and ensure the sustainability of the telecom sector,” he stated.
MTN Nigeria’s earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 9.2% to N1.3 trillion, but EBITDA margin declined by 9.6 percentage points to 39.1% due to higher costs.
While profit after tax (PAT), adjusted for net forex loss, stood at N247.3 billion, the company ended the year with negative retained earnings, prompting the board’s decision not to declare a final dividend for 2024.
Capital expenditure (excluding leases) declined 1.3% to N443.5 billion, reflecting MTN’s continued investment in network expansion despite financial pressures.
The company emphasized that stabilizing its balance sheet and improving free cash flow, which stood at N388.2 billion, remains a priority in 2025.
Looking ahead, MTN Nigeria expects a recovery in retained earnings and shareholders’ equity within the next 12 months, supported by tariff adjustments and cost-efficiency measures.
However, the company remains cautious, citing potential headwinds from currency volatility and inflationary pressures that could influence the pace of recovery.
