MTN Nigeria Plc posted a pre-tax loss of N175.6 billion for the quarter ending June 30, 2024, reflecting a 38% year-on-year appreciation from the N282.3 billion pre-tax loss as of Q2 2023.
According to the group’s financial statement for the period ending June 30, 2024, it posted a revenue of N786.1 billion during the quarter, marking a 33% year-on-year growth from N591 billion as of Q2 21 billion as of Q2 2023.23.
In the first six months of 2024, MTN Nigeria recorded a revenue of N1.54 trillion, marking a 33% appreciation from N1.16 trillion as of H1 2023.
Despite posting increased revenue during the quarter, inflationary pressures and the Naira devaluation affected the company’s bottom lines. In Q2 2024, MTN Nigeria posted an operating profit of N130.5 billion, representing a 39% year-on-year decline from N214.4 billion posted in Q2 2023.
Thus, the group’s operating margin in Q2 2024 was 17%, marking a significant decline from 36% as of Q2 2023. The major culprit in MTN’s operating expenses was its network operating costs which appreciated during the quarter by 137% year-on-year to N332 billion, from N140 billion as of Q2 2023.
During the half-year, MTN’s network operating costs were about N586.8 billion, marking a 112% YoY increase from N277 billion as of H1 2023.
Key Highlights Q2 2024 vs Q2 2023
- Revenue: N786.1 billion, +33% YoY
- Direct network operating costs: N332.0 billion, +137% YoY
- Interconnect costs: N47.4 billion, +19% YoY
- Operating profit: N130.5 billion, -39% YoY
- Finance cost: N84.3 billion, +50% YoY
- (Loss)/Profit before taxation: (N175.6 billion), +38% YoY
- (Loss)/Profit for the period: (N126.4 billion), +35% YoY
- Total assets: N3.29 trillion, +3% YTD
Commentary:
With its net loss for the 2024 half-year now hitting N519 billion, the group’s accumulated loss is now at N727.2 billion as of June 30, 2024. MTN Nigeria’s negative equity has further decline from N40.8 billion at FYE 2023, to N573.7 billion at the end of the 2024 half-year.
The group’s total liabilities are about N3.86 trillion, with trade and other payables of about N1.16 trillion. MTN Nigeria also owes its related parties about N175.2 billion, with about N114.8 billion due to the parent group, MTN International.
The group as of June 30, 2024, owes about N507.4 billion on build-to-suit leases, cloud services and services provided by some of its vendors.
In Q2 2024, MTN accrued an expense of N265.4 billion on its BTS leases, marking a 155% year-on-year growth from N104 billion as of Q2 2023. During the half-year, it incurred N459.5 billion on those leases, in contrast with N204 billion incurred in H1 2023.
The group paid N21.4 billion as regulatory fees in Q2 2024, marking a 37% YoY increase from N15.6 billion as of Q2 2023.
About N144.3 billion of its foreign exchange losses incurred in Q2 2024 was on its lease liabilities, while about N110.7 billion was net loss on trade and other payables.