MTN Nigeria Plc Reports N575bn Pre-Tax Loss in Q1 2024: Inflation and Naira Devaluation Cited as Causes

Despite the loss, MTN Nigeria experienced growth across all its revenue lines, including voice, data, fintech, and digital revenue. Voice and data combined contributed N318.9 billion and N349.5 billion, representing growth rates of 14.9% and 53.4%, respectively.

MTN Nigeria Plc has released its unaudited financial statement for the first quarter (Q1) of 2024, revealing a pre-tax loss of N575.69 billion. This marks a significant reversal from the N162.9 billion profit recorded in the same period in 2023. The company attributes this loss to exchange rate depreciation, which resulted in substantial foreign exchange (FX) losses of N656.3 billion.

Despite the loss, MTN Nigeria experienced growth across all its revenue lines, including voice, data, fintech, and digital revenue. Voice and data combined contributed N318.9 billion and N349.5 billion, representing growth rates of 14.9% and 53.4%, respectively.

However, the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) declined by 1.9% to N296.9 billion, with EBITDA margins falling to 39.4% from 53.3% in the same period in 2023.

Karl Toriola, CEO of MTN Nigeria, commented on the challenging operating environment, citing increasing inflation and continuous naira depreciation as the primary causes of the losses. "The operating environment in the first quarter remained very challenging, with rising inflation and continued naira depreciation off an already low base," he said.

The report highlights the significant impact of macroeconomic factors on the telecommunications industry, particularly in Nigeria. The company's financial performance is a reflection of the broader economic challenges facing the country.

Key Highlights:

- Pre-tax loss: N575.69 billion

- Revenue: N752.9 billion (32.5% increase)

- EBITDA: N296.9 billion (1.9% decline)

- Foreign Exchange losses: N656.3 billion

- Voice and data revenue: N318.9 billion and N349.5 billion (14.9% and 53.4% growth)

- EBITDA margins: 39.4% (from 53.3% in Q1 2023)

The report underscores the need for stakeholders to address the underlying economic issues affecting the industry's performance. As MTN Nigeria navigates these challenges, it remains committed to delivering quality services to its customers and contributing to the growth of the Nigerian economy.

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