MTN Reports N519 Billion Loss in First Half of the Year Due to Inflation and Weak Naira

MTN Nigeria Communications Plc reported a post-tax loss of N519.1 billion for the first half of 2024. The loss is attributed to record-high inflation and the devaluation of the naira, which have significantly impacted the country’s economic environment.

Despite these challenges, the company saw a 32.6% increase in service revenue, reaching N1.5 trillion, according to its financial report for the period ending June 2024.

In the first quarter, MTN had already declared a post-tax loss of N392.7 billion. Commenting on the H1 results, Karl Toriola, CEO of MTN Nigeria, stated, “The macroeconomic conditions in Nigeria have been challenging during the period.” He further noted that, excluding forex losses, the company would have reported a profit after tax of N102.3 billion.

Toriola emphasized the impact of the naira’s depreciation between December 2023 and June 2024, which led to substantial net forex losses of N887.7 billion, compared to N454.7 billion in the same period last year. These losses were primarily due to the revaluation of foreign currency-denominated obligations.

More details will follow…