MTN Nigeria Communications Plc (MTN Nigeria) has announced its financial results for the nine months ended 30 September 2024 showing mixed performance.

The telecom company recorded a loss after tax of N514.9 billion (Q3 2024 profit after tax of N4.1 billion) while Profit After Tax (PAT) adjusted for the net forex loss was N118.5 billion, down 59.2%.

However, the loss was largely due the devaluation of the naira with the N514.9bn down by N4.1 against N519.1bn recorded in its half year result.

Despite the economic headwinds, the Service revenue increased by 33.6% to N2.4 trillion.

Also, total subscribers decreased by 0.9% to 77.0 million as its subscribers’ base was impacted by the NIN-SIM linkage regulations, which saw telecom companies deregistering some Subscriber Identity Module (SIM) cards.

According to the result, active data users increased by 5.1% to 45.3 million while Active mobile money (MoMo PSB) wallets decreased by 21.8% to 2.8 million.

The result further showed that Earnings before interest, tax, depreciation and amortisation (EBITDA) decreased by 5.3% to N860.2 billion while EBITDA margin decreased by 14.9 percentage points (pp) to 36.3%.

MTN Nigeria CEO Karl Toriola in his comment on the nine-month result described the performance as “resilient” despite persistent macroeconomic pressures and regulatory challenges.

“In the first nine months of 2024, we sustained the growth in our underlying operating performance – underpinned by our resilient business model and operational agility – despite challenging conditions.

“The inflation rate remained elevated amidst rising energy prices and naira depreciation. Inflation averaged 32.8% in the nine months (Q3 2024: 32.8%) compared to an average of 24.5% in 2023 (Q3 2023: 25.5%). To curb inflation, the Central Bank of Nigeria (CBN) increased the Monetary Policy Rate (MPR) by 8.5pp to 27.25% during the period, resulting in higher funding costs, although this helped reduce volatility and improve liquidity in the forex market.

“The higher inflation and interest rates weighed on consumers’ spending power and impacted business activity. However, we remain focused on enhancing operational efficiency and driving the growth of our commercial operations.”

Meanwhile, the company said it would raise N50 billion through its latest issuance of commercial paper (CP) under its N250 billion Commercial Paper Issuance Programme.

This Series 11 and 12 CP issuance aims to strengthen MTN Nigeria’s short-term working capital and diversify its financing base, according to the notification to the Nigerian Exchange Limited and the investing public.

It said the proposed issuance is part of MTN Nigeria’s ongoing strategy to tap the debt market as a flexible funding source to meet immediate financial needs.

In recent times, the depreciation of the naira has impacted earnings of the telecommunication company, which has impacted on its ability to declare dividends for shareholders.

In the 2023 year, MTN Nigeria recorded a significantly higher net foreign exchange loss of N740.4 billion, an 805% increase over 2022 (N81.8 billion).

It would be recalled that in June, 2023, the Central Bank of Nigeria (CBN) ended the multiple exchange rate regime and floated the currency, which saw the exchange rate increasing from N461.1/US$ in December 2022 to N907.1/US$ in December 2023. (Daily Trust)