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MTN Nigeria Communications (MTNN) Plc has reported a net loss of N519.1 billion for the first half of 2024, mainly due to continued foreign exchange (FX) losses. The company’s loss after tax increased by over 500% from N85.6 billion in the same period in 2023. Earnings per share also dropped to a negative N24.7, compared to a negative N4.1 last year.
Despite this, MTNN saw a 32.8% increase in revenue, reaching N1.539 trillion, up from N1.159 trillion in 2023. Operating expenses also rose by 43.0% to N422.7 billion. The company’s FX losses increased by 95.2% to N887.7 billion, and its net finance costs jumped by 96.0% to N168.2 billion.
MTNN’s net asset value turned negative, with a 14.1 times decrease in shareholders’ funds to N577.7 billion. However, total assets grew by 3.02%, though the return on assets remained negative at 32.1%.
CEO Karl Toriola acknowledged the tough macroeconomic environment in Nigeria but remained optimistic about the company’s ability to overcome these challenges. He highlighted that, despite barring 8.6 million subscribers in line with an NCC directive, MTNN only saw a small drop in customers, growing the total number of subscribers to 79.4 million, a 2.9% increase year-on-year.
Data usage and voice traffic also saw growth, with active data subscribers increasing by 1 million to 45.6 million and data traffic rising by 42.6%. MTNN is also expanding its infrastructure, including the construction of a new Tier 4 data centre, which will be the largest in West Africa.
Looking ahead, Toriola stated that MTNN will focus on accelerating earnings recovery, strengthening its balance sheet, and improving its net asset position.
