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MTN Reports Second Consecutive Loss Due to Naira Depreciation

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MTN Nigeria Communications Plc has declared a loss after tax of N392.7 billion for the first quarter of 2024, marking its second consecutive loss despite a significant increase in service revenue.

With a 32.0 per cent rise in service revenue to N747.3 billion year-on-year, the telecom giant faced challenges that led to its continued financial struggle.

The 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 naira devaluation and forex losses, the Profit after tax declined by 57.8 per cent to N47.1 billion.

Karl Toriola, MTN Nigeria’s CEO, attributed these losses to severe macroeconomic headwinds, including rising inflation and naira depreciation, which have significantly impacted the operating environment for businesses in Nigeria.

These factors have caused significant difficulties for businesses operating in Nigeria, including MTN Nigeria, putting additional pressure on consumers, the cost of doing business, and further foreign exchange (forex) losses, he stated.

This financial setback marks a continuation of MTN’s struggles. It follows an initial first loss after tax of N137 billion reported earlier in 2023. The company’s retained earnings and shareholders’ fund fell by N208.0 billion and N40.8 billion, respectively.

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