MTN Nigeria Communications Plc has reported a ₦400.44 billion loss for the financial year ended December 31, 2024, a decline from the ₦137.02 billion loss recorded in 2023.
This is a 198.4% year-on-year increase in losses, primarily driven by the devaluation of the naira and high costs of operations.
Despite the losses, the telecommunications giant recorded a 36% increase in revenue, reaching ₦3.36 trillion, compared to ₦2.47 trillion in 2023.
The revenue surge was driven by increased data and voice subscriptions, but it was not enough to offset the ₦925.36 billion foreign exchange losses, which worsened from ₦740.43 billion in the previous year.
According to the financial statement released on February 27, 2025, MTN Nigeria’s operating profit stood at ₦778.24 billion, showing a marginal 0.6% growth from the previous year’s ₦773.66 billion.
However, the company reported a loss before taxation of ₦550.32 billion, representing a 209.4% decline from ₦177.89 billion in 2023.
Market and Dividend Impact
The losses largely affected the company’s market valuation. MTN Nigeria’s market capitalisation dropped by 24.2%, falling from ₦5.54 trillion in 2023 to ₦4.20 trillion by year-end 2024. Similarly, the market price per share fell to ₦200, a decline from ₦264 per share recorded in the previous year.
Due to the negative financial performance, MTN Nigeria’s board has decided not to declare a final dividend for the year, a departure from the interim ₦5.60 per share dividend paid in 2023.
Key Financial Indicators:
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Net liabilities per share rose from ₦2.17 in 2023 to ₦21.84 in 2024, reflecting a 908.7% increase.
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Total equity attributable to shareholders plummeted to ₦458 billion in losses, a drastic fall from ₦45.40 billion in 2023.
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Basic and diluted loss per share stood at ₦19.05, up from ₦6.38 in the previous year.
MTN Nigeria attributed its financial struggles to currency devaluation, rising operational costs, and significant foreign exchange losses.
The company renegotiated key infrastructure-sharing and lease agreements with IHS Towers in 2024, aiming to reduce the dollar-indexed components of lease payments and shift towards naira-based pricing.
Additionally, the long-standing USSD debt dispute with Nigerian banks saw a partial resolution, with banks settling ₦32 billion out of the ₦74 billion owed to MTN Nigeria as per a directive from the Central Bank of Nigeria (CBN) and Nigerian Communications Commission (NCC).
To ensure a better 2025, MTN Nigeria is investing heavily in network expansion and digital services, including its MoMo Payment Service Bank and broadband services, to drive future growth.
Analysts believe that exchange rate stability and further regulatory interventions will help boost MTN Nigeria’s ability to recover from this financial downturn.
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