"Most of the naira weakness will affect 2024, more than 2023, and it will take some time for MTN to recoup cost pressure from the consumer given regul
“Most of the naira weakness will affect 2024, more than 2023, and it will take some time for MTN to recoup cost pressure from the consumer given regulatory restrictions in
MTN Nigeria joined the expanding list of financially distressed companies in the country after its entire shareholders’ fund was obliterated by a sweeping after-tax loss precipitated by a dollar scarcity in
The wireless carrier, which executes the majority of its transactions with trade partners in foreign currencies, incurred N740 billion in net foreign exchange loss last year following sharp jumps in the rates of exchanging the naira for the dollar.
That turned its shareholders’ fund into a negative figure of N40.8 billion, with liabilities totalling N3.230 trillion and assets summing up to N3.188 trillion.
“2023 witnessed a very challenging operating environment characterised by rising inflation, currency devaluation and foreign exchange shortages, complicated by geopolitical disruptions and cash shortages in Q1 arising from a redesign of the naira,” CEO
“These factors created severe headwinds for our customers and our business during the year.”
MTN Nigeria reported a net loss of N137 billion compared to a net profit of N348.7 billion one year prior.
The abysmal performance of MTN Nigeria, the local unit of
MTN Nigeria contributes about one-third of the group’s revenue.
“Most of the naira weakness will affect 2024, more than 2023, and it will take some time for MTN to recoup cost pressure from the consumer given regulatory restrictions in
2023 has been an unprecedented year for
Big corporations including
MTN Nigeria said its customer base grew 5.3 per cent to 79.7 million during the year, while active data users rose 12.7 per cent to 44.6 million.
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