MTN Nigeria Rebounds to Profit with N4 Billion in Q3 Amid Economic Challenges
Detailed Breakdown:
Return to Profit After Three Quarters of Loss
MTN Nigeria Communications Plc has reported a return to profitability in the third quarter of 2024, achieving a profit after tax of N4.13 billion. This follows three consecutive quarters of losses, indicating a positive shift for the telecom giant.
Financial Performance for Nine Months
Despite the recent profit, MTN Nigeria reported a total loss of N514.93 billion for the first nine months of 2024. This represents a 0.80% decline from the N519.1 billion loss recorded by the end of June 2024, suggesting a slight slowdown in the losses previously reported.
Impact of Economic Conditions
MTN Nigeria’s performance has been adversely affected by high inflation and the devaluation of the naira, leading to increased operational costs. These economic pressures have weighed on the company’s financials, although MTN’s underlying business model and operational flexibility have helped stabilize performance.
Revenue Growth Amid Challenges
Karl Toriola, CEO of MTN Nigeria, highlighted the company’s ability to maintain revenue growth despite the economic headwinds. MTN reported a 33.6% increase in service revenue, reaching N2.4 trillion, driven largely by data revenue, which contributed N1.14 trillion to the total.
Through operational resilience and strategic focus on data-driven revenue, MTN Nigeria continues to adapt to Nigeria’s challenging economic environment, positioning itself for sustained recovery in upcoming quarters.
Detailed Breakdown:
Return to Profit After Three Quarters of Loss
MTN Nigeria Communications Plc has reported a return to profitability in the third quarter of 2024, achieving a profit after tax of N4.13 billion. This follows three consecutive quarters of losses, indicating a positive shift for the telecom giant.
Financial Performance for Nine Months
Despite the recent profit, MTN Nigeria reported a total loss of N514.93 billion for the first nine months of 2024. This represents a 0.80% decline from the N519.1 billion loss recorded by the end of June 2024, suggesting a slight slowdown in the losses previously reported.
Impact of Economic Conditions
MTN Nigeria’s performance has been adversely affected by high inflation and the devaluation of the naira, leading to increased operational costs. These economic pressures have weighed on the company’s financials, although MTN’s underlying business model and operational flexibility have helped stabilize performance.
Revenue Growth Amid Challenges
Karl Toriola, CEO of MTN Nigeria, highlighted the company’s ability to maintain revenue growth despite the economic headwinds. MTN reported a 33.6% increase in service revenue, reaching N2.4 trillion, driven largely by data revenue, which contributed N1.14 trillion to the total.
Through operational resilience and strategic focus on data-driven revenue, MTN Nigeria continues to adapt to Nigeria’s challenging economic environment, positioning itself for sustained recovery in upcoming quarters.