MTN Nigeria’s wider loss of N400bn denies shareholders dividends
MTN Nigeria Communications Plc, the country’s biggest telecommunication company, posted a threefold surge in its loss after tax for the 2024 financial year as naira devaluation drove up its foreign currency-denominated obligations.
With its after-tax loss widening to N400 billion from N137 billion in 2023, the company did not declare a dividend for 2024 for the first time since it was listed on the Nigerian stock exchange. It paid shareholders N171.7 billion for the previous year.
“In view of the loss for the year ended December 31, 2024, resulting from the significant currency devaluation and its impact on retained earnings, the directors will not recommend a final dividend payment,” the company said in a statement.
The 36 percent rise in the revenue of the telecoms giant could not make a dent in its overall financial performance.
READ MORE: MTN Nigeria raises fresh N42.2bn through commercial paper
Karl Toriola, CEO of MTN Nigeria, said forex losses arose from the revaluation of foreign currency-denominated obligations.
“Consequently, we reported negative retained earnings of N607.5 billion (December 2023: negative N208 billion), which was an improvement from the June 2024 balance of N727.2 billion,” he said.
Toriola said shareholders’ equity was negative N458 billion, up from N40.8 billion in the previous year. “We delivered a positive free cash flow of N388.2 billion, down 3.7 percent.”
He said the company took some comfort from the improvement in US dollar liquidity in the forex market and reduced volatility over the course of the year, as the naira exchange rate held relatively stable through the second half of the year.
MarketsReporters previously reported that the telecommunication and information sector fell to the lowest in at least six years.
The full-year 2024 GDP report shows that the sector grew at a slower pace of 6.25 percent last year compared to 8.90 percent in 2023.
The decline in the telecommunication sector drove down the growth of the Information and Communication sector to 5.42 percent, the lowest in seven years.
