MTN Nigeria Communications Plc has announced its second consecutive loss, reporting a loss after tax of N392.7 billion for the first quarter of 2024. Despite a significant 32.0 percent increase in service revenue to N747.3 billion year-on-year, the telecom giant faced challenges that led to its second loss since its listing on the Nigerian Exchange.
The company disclosed that its net loss for the quarter contributed to its accumulated losses and negative shareholders’ funds, reaching N599.2 billion and N434.7 billion, respectively. Adjusting for the impact of the naira devaluation and forex losses, the Profit after tax declined by 57.8 percent to N47.1 billion.
Karl Toriola, MTN Nigeria’s CEO, attributed the losses to severe macroeconomic headwinds, including rising inflation and naira depreciation, which have significantly impacted the operating environment for businesses in Nigeria.
These challenges have led to additional pressure on consumers, increased business costs, and further forex losses.
This marks a continuation of MTN's financial struggles, following its first loss after tax of N137 billion in 2023, and highlights the ongoing economic challenges facing Nigeria's telecom industry.
