The Nigeria-African Leading telecommunication company, MTN, said its active data users rose by 5.1% to 45.3 million, while service revenue increased by 33.6% to N2.4 trillion. The company’s unaudited results for the nine months ended 30 September 2024 released on Thursday noted.
MTN also recorded a loss of N514.9 billion after tax in the first nine months of 2024, a situation primarily traceable to naira depreciation and increased foreign currency-denominated obligations.
Consequently, MTN’s retained earnings and shareholders’ equity turned negative, amounting to N723.0 billion and N573.6 billion, respectively, as of September 2024.
Karl Toriola, MTN Nigeria’s Chief Executive Officer, In his comments on the results, noted that had it not been for the forex revaluation losses, the company’s profit after tax (PAT) would have been N118.5 billion, down 59.2% year-on-year.
During the period, MTN Nigeria’s total subscriber base saw a slight decline of 0.9% to 77.0 million, primarily influenced by compliance with NIN-SIM regulations.
In contrast, active data users increased by 5.1% to 45.3 million, while active mobile money (MoMo) wallets declined by 21.8% to 2.8 million.
The telecom giant reported a robust increase in service revenue, up 33.6% to N2.4 trillion, demonstrating continued demand for its core services despite the
The company’s recent renegotiation of its tower lease contracts with IHS Towers yielded savings in operating expenses, which positively impacted its earnings before interest, tax, depreciation, and amortization (EBITDA) margin by 2.3 percentage points.
However, EBITDA declined by 5.3% year-on-year to N860.2 billion, with the EBITDA margin decreasing by 14.9% points to 36.3%.
Furthermore, the total subscribers declined by 0.9% to 77.0 million, while active data users rose by 5.1% to 45.3 million, while service revenue increased by 33.6% to N2.4 trillion. Negative Earnings Per Share (EPS) of N24.51 kobo; adjusted for forex loss, EPS would have been N5.65 kobo, down 59.2%. Retained Earnings and Shareholders’ Equity closed negative at N723.0 billion and N573.6 billion, respectively.
Capex, excluding leases, decreased by 27.8% to N217.6 billion. Achieved a positive free cash flow of N536.8 billion, up 21.9%.
Commenting on the results, Toriola, said despite forex challenges, MTN Nigeria’s positive free cash flow, supported by favorable working capital movements and reduced capital expenditure, underscores its resilience in navigating the current economic landscape.
“As we manage the effects of the ongoing macroeconomic headwinds on our business, we remain focused on initiatives to accelerate our earnings recovery profile, strengthen our balance sheet, and restore our net asset position faster,” he said.
Toriola pointed out that MTN has continued to manage the effects of the Nigerian Communications Commission’s (NCC) industry-wide NIN-SIM directive, which has impacted the evolution of its customer base.
Having complied with the regulatory directive to disconnect some lines, the company is now working towards reconnecting those affected to reduce churn while extracting increased value from the market.
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