MTN Nigeria Communications Plc, a leading telecommunications provider, has disclosed a loss after tax of N137 billion for the year 2023, attributed to foreign exchange losses.
In its audited financial results for the year ended December 31, 2023, the company cited significant forex fluctuations as the primary driver behind the reported loss, with its net loss for the year resulting in a depletion of retained earnings and shareholders’ fund to negative N208.0 billion and N40.8 billion, respectively.
Karl Toriola, Chief Executive Officer of MTN Nigeria, addressed the financial outcome, stating, “2023 witnessed a very challenging operating environment characterised by rising inflation, currency devaluation and foreign exchange shortages, complicated by geopolitical disruptions and cash shortages in Q1 arising from a redesign of the naira.
“These factors created severe headwinds for our customers and our business during the year. The inflation rate increased throughout the year, reaching 28.9% in December 2023 – the highest reading in 18 years – with an average rate of 24.5%.
“This was further exacerbated by higher fuel prices, arising from the removal of the fuel subsidy in May 2023, with the average prices of diesel and petrol up by 66.4% and 257.1% in 2023 to N1,416.8/litre and N600/litre, respectively.”
Toriola emphasized that MTN Nigeria’s profit after tax would have stood at N344.5 billion if not for the adverse impact of forex losses, underlining the impact of currency volatility on the company’s financial performance.
However, in spite of the declared losses, the business fundamentals are still strong with a N2.5 trillion top line revenue, N1.2 trillion EBITDA margins and N631 billion in free cash flow, up 12%.
