MTN Nigeria reports a $112.37 million loss in 2023. Just in the past week, MTN Group reportedly cautioned shareholders that it anticipated a major decline in its earnings for the year 2023 due to forex losses in Nigeria.
MTN Nigeria Reports Loss in 2023
The telecommunications giant, MTN Nigeria, faced a challenging fiscal year ending December 2023, marked by significant financial setbacks despite commendable operational achievements.
In a stark contrast to the preceding fiscal period, MTN Nigeria reported a substantial loss before tax amounting to ₦177.8 billion ($112.37 million), signaling a notable decline from the previous year’s pre-tax profit of ₦518.8 billion ($327.99 million).
A major contributing factor to this unprecedented loss was the substantial foreign currency loss recorded at ₦740 billion ($467.67 million), representing a significant surge from the ₦81 billion ($51.19 million) reported in the previous fiscal year. This foreign currency loss substantially depleted shareholder funds, exacerbating the financial challenges faced by the company.
MTN Nigeria Positive Operational Outcomes
Despite these financial setbacks, MTN Nigeria saw positive operational outcomes, including a 5.3% increase in total subscribers, reaching 79.7 million, and a noteworthy rise of 12.7% in active data users, totaling 44.6 million.
The Company’s Service Revenue
The company’s service revenue exhibited a substantial surge, growing by 22.4% to reach ₦2.5 trillion ($1.75 billion), while EBITDA experienced a growth of 12.3% to ₦1.2 trillion ($758.39 million). However, these positive operational gains were overshadowed by the substantial forex losses incurred, resulting in a significant loss after tax of ₦137 billion ($86.58 million).
Adjusting for the forex losses, the adjusted profit after tax (PAT) experienced a decline of 14.3%, amounting to ₦344.5 billion ($217.72 million). Similarly, earnings per share (EPS) saw a decline to a negative value of ₦6.38 kobo (adjusted to ₦16.56 kobo for the forex loss), representing a 14.1% decrease.
Other Factors Contributing To the Decline in Earnings
Additionally, other factors contributing to the decline in earnings include impairment losses, gains on disposals, and various non-operational items, further complicating the company’s financial performance during the fiscal year.
MTN Nigeria’s Financial Results for the Fiscal Year Ending December 2023
Overall, MTN Nigeria’s financial results for the fiscal year ending December 2023 reflect a challenging operating environment characterized by significant forex losses, despite notable operational achievements in terms of subscriber growth and service revenue.
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