MTN Nigeria Communications Plc has reported a loss after tax of $519.1 billion for the first half of 2024.
The telecommunication company attributed the loss to inflation and a weaker naira.
In its financial results for the period ending June 2024, Chief Executive Officer of MTN Nigeria said, the macroeconomic conditions in Nigeria have been challenging as the country has been grappling with rising inflation and the continued depreciation of the naira against the US dollar and other currencies.
The loss by the company shows a 38 per cent year-on-year appreciation from the N282.3 billion pre-tax loss as of Q2 2023.
According to the group’s financial statement for the period ending June 30, 2024, it posted a revenue of N786.1 billion during the quarter, marking a 33 per cent year-on-year growth from N591 billion as of Q2 21 billion as of Q2 2023.23.
MTN Nigeria recorded a revenue of N1.54 trillion, marking a 33 per cent appreciation from N1.16 trillion as of H1 2023.
The major driver of MTN’s operating expenses was its network operating costs which appreciated during the quarter by 137 per cent year-on-year to N332 billion, from N140 billion as of Q2 2023.
During the half-year, MTN’s network operating costs were about N586.8 billion, marking a 112 per cent year-on-year increase from N277 billion as of H1 2023.
With its net loss for the 2024 half-year now hitting N519 billion, the group’s accumulated loss is now at N727.2 billion as of June 30, 2024.
MTN Nigeria’s negative equity has further declined from N40.8 billion at FYE 2023, to N573.7 billion at the end of the 2024 half-year.
The group’s total liabilities are about N3.86 trillion, with trade and other payables of about N1.16 trillion. MTN Nigeria also owes its related parties about N175.2 billion, with about N114.8 billion due to the parent group, MTN International.
The group as of June 30, 2024, owes about N507.4 billion on build-to-suit leases, cloud services and services provided by some of its vendors.
