MTN Nigeria Communications Plc has announced a profit after tax of N4.13 billion for Q3 2024, marking a significant turnaround after three consecutive quarters of losses. The telecom giant recorded total revenue of N514.9 billion over the last nine months, ending in September 2024. However, despite the profit in Q3, MTN still faces an aggregate loss for the year, with operational costs surpassing revenues across earlier quarters.
Economic Challenges Impacting Telecoms
MTN Nigeria’s financial performance reflects the economic pressures of a depreciating naira and rising inflation. In 2023, a Central Bank of Nigeria (CBN) decision to float the naira resulted in the currency’s value plummeting from N471/$ to over N1,500, leading to higher operational costs across the telecom sector. Alongside MTN, Airtel Africa, another telecom giant, reported a substantial revenue drop due to the naira’s depreciation, with its Q2 Profit After Tax (PAT) impacted by exceptional foreign exchange losses.
Data and Service Revenue Drive MTN’s Resilience
MTN Nigeria’s service revenue rose by 33.6% to N2.4 trillion, with data revenue contributing an additional N1.14 trillion. CEO Karl Toriola highlighted the company’s resilience, saying, “Our commercial momentum drove broad-based growth across all revenue segments, demonstrating the underlying strength and resilience of the business.” Data and service revenue growth, bolstered by fintech and digital services, helped the company surpass the average inflation rate and offset some economic challenges.
Subscriber Trends and Data Usage
MTN’s subscriber base saw a 1% decrease to 77 million, partly due to stricter National Identification Number (NIN) and SIM linkage regulations. However, the company reported positive trends in data usage, with a 5.1% increase in active data subscribers, reaching 45 million. Voice traffic grew by 9.8%, and data consumption per user rose to 11.3 GB monthly, a 31.2% increase.
MTN Nigeria’s return to profit in Q3 2024, despite facing economic headwinds, reflects its operational agility and a robust focus on data and digital services. This growth, even amid challenging conditions, suggests promising stability for MTN as it continues to navigate Nigeria’s evolving economic landscape.
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