MTN Nigeria Communications Plc has announced a second consecutive loss, reporting a loss after tax of N392.7 billion for the first quarter of 2024.

Despite a 32.0 percent increase in service revenue to N747.3 billion year-on-year, the telecom company recorded its second loss since being listed on the Nigerian Exchange. This information was disclosed in its earnings statement for the first quarter of 2024.

The company noted that its net loss for the quarter contributed to its accumulated losses and negative shareholders’ funds, which now stand at N599.2 billion and N434.7 billion, respectively. It highlighted that its Profit after tax, adjusted for the net forex loss, decreased by 57.8 percent to N47.1 billion.

“Further adjusting for the impact of the naira devaluation in opex, PAT would have been down by 5.3 percent to N105.6 billion,” MTN said. The telco’s net foreign exchange loss was recorded at N656.37 billion.

Karl Toriola, MTN Nigeria’s chief executive officer, acknowledged that severe macroeconomic challenges overshadowed a solid operating performance.

He stated: “The operating environment in the first quarter remained very challenging, with rising inflation and continued naira depreciation off an already low base.”

Toriola highlighted that the naira’s devaluation and record-high inflation have impacted the operating environment for businesses in Nigeria.

“These factors have caused significant difficulties for businesses operating in Nigeria, including MTN Nigeria, putting additional pressure on consumers, the cost of doing business, and further foreign exchange (forex) losses,” he added.

In 2023, MTN declared its first loss after tax of N137 billion. Its retained earnings and shareholders’ fund fell to negative N208.0 billion and N40.8 billion, respectively.