Despite a 32.0% increase in service revenue to N747.3 billion, MTN Nigeria Communications Plc has recorded its second consecutive loss for the first quarter of 2024.
Due to its net loss, the telco now has N599.2 billion in cumulative losses and N434.7 billion in negative shareholders’ money.
To account for the net foreign exchange loss, profit after taxes fell by 57.8% to N47.1 billion.
A net foreign exchange loss of N656.37 billion was incurred by MTN.
Chief Executive Officer Karl Toriola blamed persistent depreciation of the naira and growing inflation for the difficult operating environment.
Record-high inflation and the devaluation of the naira have negatively impacted the business environment for Nigerian companies, such as MTN Nigeria, increasing consumer pressure, operating costs, and foreign exchange losses.
With retained earnings and shareholders’ fund declining to negative N208.0 billion and N40.8 billion, respectively, MTN reported its first loss after tax of N137 billion in 2023.
