MTN Nigeria has recorded N575.6 billion pre-tax loss in the first quarter (Q1) of 2024.

This was contained in a statement issued by the MTN Nigeria Chief Executive Officer (CEO) Karl Toriola on Tuesday, April 20, 2024.

Toriola noted: “The further depreciation of the naira in Q1 resulted in a materially higher net forex loss of N656.4 billion (Q1 2023 restated: N4.5 billion), arising from the revaluation of foreign currency denominated obligations.

“This led to a loss after tax of N392.7 billion compared to a restated PAT of N108.4 billion in Q1 2023.

“This has resulted in negative retained earnings and shareholders’ equity at the end of March 2024 of N599.2 billion and N434.7 billion, respectively.”

He stated that the company’s total subscribers declined by two million under the period of review due to the implementation of the National Identity Number (NIN)-SIM directive, which, he said, affected the development of user base.

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The MTN Nigeria CEO added that the company’s active data users declined by 78,000 in Q4 2023.

Toriola said the active mobile money (MoMo PSB) wallets declined by 566,000 in Q4 2023 due to the NIN requirement for Know Your Customer (KYC) validation.

He stated that service revenue increased by 32.0 per cent to N747.3 billion, noting that Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) declined by 1.9 per cent to N297.0 billion.

EBITDA margin decreased by 13.9 percentage points (pp) to 39.4 per cent, he stated.

According to him, the loss after tax was N392.7 billion, while profit after tax (PAT) adjusted for the net foreign exchange loss declined by 57.8 per cent to N47.1 billion.

The MTN Nigeria CEO further disclosed that earnings per share (EPS) declined to negative N18.63 kobo (N2.34 kobo adjusted for the net forex loss, down 55.6 per cent), saying the net loss for the quarter resulted in a further increase in our accumulated losses and negative shareholders’ funds to N599.2 billion and N434.7 billion, respectively.

Toriola added that capital expenditure (capex) increased by 49.1 per cent to N179.7 billion (up 84.4 per cent to N78.1 billion, excluding leases).

“Positive free cash flow of N117.2 billion (down 35.6 per cent from N182.1 billion in Q1 2023),” he stated.

The Star