MTN Nigeria Communications Plc has reported record-breaking revenue of N3.36 trillion for 2024, but the company also recorded a post-tax loss of N400.44 billion, as shown in its latest financial statement. Below are the essential figures that define the company’s financial performance for the year.
Subscriber Growth: 80.9 Million Users
Despite a regulatory directive from the Nigerian Communications Commission (NCC) that required disconnection of lines lacking National Identification Numbers, MTN’s subscriber base grew by 1.6 percent, reaching 80.9 million. The telecom sector, however, suffered an overall loss of over 40 million lines due to this enforcement.
Data Usage Expansion: 47.7 Million Active Users
MTN’s active data subscribers increased by 7 percent, totaling 47.7 million users. This growth was fueled by a rising customer base and increased data consumption. The company reported a 42.9 percent surge in data traffic, while the average data usage per user climbed by 33.6 percent to 11.2GB. Nigeria’s internet data consumption continued to rise significantly, hitting 9,763,595.18 terabytes in December 2024.
Revenue Growth: N3.36 Trillion in Service Revenue
MTN achieved its highest-ever service revenue in 2024, amounting to N3.36 trillion, up from N2.47 trillion in 2023. This performance was largely driven by a strong increase in data revenue, which contributed N1.59 trillion, marking a 49.08 percent rise from N1.07 trillion in the previous year. Voice revenue also saw growth, reaching N1.30 trillion, a 14.53 percent increase from N1.14 trillion in 2023.
Significant Loss: N400.4 Billion
The telecom giant reported a post-tax loss of N400.4 billion, reflecting a 192.25 percent increase compared to the N137.02 billion loss recorded in 2023. The major contributing factor was foreign exchange losses linked to the revaluation of foreign currency-denominated liabilities. MTN’s forex-related losses escalated to N925.36 billion, up from N740.43 billion in the previous year. However, the company posted a profit after tax of N114.5 billion in the fourth quarter of 2024.
Projected Profit Without Forex Losses: N247.3 Billion
MTN highlighted that without the impact of net foreign exchange losses, it would have recorded a post-tax profit of N247.3 billion. The company successfully reduced its outstanding U.S. dollar-denominated letters of credit obligations from $416.6 million as of December 31, 2023, to $20.8 million, representing an 86 percent reduction. This move is expected to enhance financial stability and mitigate risks tied to naira depreciation and financing costs.
Capital Expenditure: N443.5 Billion
MTN’s capital expenditure (excluding leases) declined slightly by 1.3 percent to N443.5 billion. The company attributed this reduction to a strategic focus on operational efficiency.
Debt Financing: N190 Billion Raised
MTN secured N190 billion from the domestic debt market under its N250 billion Commercial Paper Issuance Programme. This fundraising effort aligns with the company’s revamped financing strategy to meet business needs. Additionally, MTN further reduced its exposure to foreign currency borrowings, increasing the share of naira-denominated debt to 72 percent by the end of 2024. The company also noted that approximately 51 percent of its total borrowings now carry fixed interest rates.
Outstanding USSD Receivables: N32 Billion Recovered
The company recovered N32 billion from banks as part of outstanding payments for Unstructured Supplementary Service Data (USSD) services. The remaining balance, totaling N74 billion, has been classified as receivables and is expected to be settled in 2025.
Cash Flow Performance: N388.2 Billion Free Cash Flow
MTN maintained a positive free cash flow of N388.2 billion, though this reflected a 3.7 percent decline compared to the previous year.
MTN’s 2024 financial performance underscores both growth and challenges, with strong revenue gains counterbalanced by substantial forex-related losses. The company’s ongoing strategic adjustments aim to enhance financial stability while maintaining operational efficiency in an evolving economic landscape.
