Latest news with #KarlToriola
IOL News
30-04-2025
- Business
- IOL News
MTN Nigeria reports a significant financial rebound with surge in subscribers
MTN Nigeria's financial results have struggled during the past two years due to economic policy changes that resulted in the significant depreciation of the currency, the Naira, but its results for the first quarter to March 31, 2025, indicate a turnaround. Image: supplied MTN Nigeria Communications has reported a substantial increase in its subscriber base and an financial turnaround for the quarter ending March 31. The mobile network operator and biggest subsidiary of JSE-listed MTN Group added 3.2 million new subscribers, boosting its total subscriber count by 8.2% to reach 84.1 million in a period marked by economic challenges. Once jeopardised by macroeconomic policy shifts that led to the naira's substantial depreciation, MTN Nigeria's latest results reveal a robust recovery. In a stark contrast to a taxed loss of N392.7 billion during the same period last year, the company announced a profit of N133.7bn, reflecting an ability to adapt and thrive amidst economic turbulence. 'We reported a significant turnaround in our bottom line. This reflects the successful delivery of the five strategic priorities we committed to at the Extraordinary General Meeting on April 30, 2024,' said CEO Karl Toriola. This resulted in an improvement of retained earnings from negative N607.5bn to negative N474.1bn, while shareholders' equity also saw a positive shift, moving from negative N458bn to negative N324.6bn. The financial outlook appears promising, with an anticipated recovery in free cash flow (FCF) following the impact of a recent tariff increase. During the first quarter, MTN Nigeria noted a 40.5% surge in service revenue, totalling N1 trillion, while earnings before interest, tax, depreciation, and amortisation (EBITDA) surged by 65.9% to N492.7bn. Active data users also saw a healthy rise of 13%, reaching 50.3 million. The positive momentum was not unnoticed in the market; MTN Group's share price rose by 3.04% on the JSE on Wednesday, contributing to an annual gain of 32.8%. 'Building on the momentum from the fourth quarter, our first-quarter results place us on the path to restoring profitability and achieving a positive net asset position within the current financial year, while increasing our investments to improve network and service quality,' said Toriola. During the quarter, the regulatory approval for price adjustments facilitated an acceleration of network investments aimed at enhancing capacity and user experience. While macroeconomic uncertainties persisted, Toriola said that a relatively stable naira and easing inflation rates following the rebasing of Ghana's Consumer Price Index were positive factors towards the outlook for the rest of the financial year..
Business Insider
30-04-2025
- Business
- Business Insider
MTN Nigeria rakes in N1 trillion in Q1 2025 as tariff hike boosts revenue
MTN Nigeria recorded revenue of N1 trillion in the first quarter of 2025, marking a 40.5% year-on-year increase from the N752.9 billion posted in Q1 2024. MTN Nigeria recorded N1 trillion in revenue in Q1 2025, a 40.5% increase from Q1 2024. The company returned to profitability with a N133.7 billion profit after tax in Q1 2025, following a loss in the same period last year. MTN Nigeria added 3.2 million new users and 2.6 million active data users in Q1 2025, bringing the total subscriber base to 84.1 million and total active data users to 50.3 million. MTN Nigeria recorded revenue of N1 trillion in the first quarter of 2025, marking a 40.5% year-on-year increase from the N752.9 billion posted in Q1 2024. This strong performance was largely driven by a 50% tariff increase implemented in February 2025, though the full financial impact is expected to materialize in subsequent quarters. According to its unaudited Q1 2025 financial results, the telecom giant returned to profitability with a N133.7 billion profit after tax, a dramatic turnaround from the N392.7 billion loss recorded in the same period last year. This rebound signals a continued recovery from the financial distress triggered by the 2023 naira devaluation, which severely impacted profitability due to massive foreign exchange losses. The company has now recorded three consecutive quarters of profitability since June 2024, following a turbulent period marked by a N740 billion FX loss last year. In Q1 2025, MTN Nigeria managed to cut its realised FX losses by 66% and posted an unrealised foreign exchange gain of N55 billion, partly offsetting the N476.8 billion loss from the previous year. Telecom multinationals like MTN remain particularly exposed to exchange rate volatility due to their dollar-denominated operational and capital expenditures, a challenge that has persisted since the naira was floated. Speaking on the tariff increase, which uniformly applies to voice calls, SMS, and data plans, MTN Nigeria CEO, Karl Toriola, said: 'We commenced phased implementation of the new tariff structure in mid-February 2025 across our data and voice bundles, with the majority of adjustments taking effect in March. 'While the full impact on usage and revenue is expected from Q2, early indicators suggest continued resilience in customer demand, aided by our targeted CVM initiatives,' he added. Mr. Toriola also added a recent partnership with Airtel Africa on a passive infrastructure-sharing initiative in Nigeria. The collaboration is expected to improve network coverage and operational efficiency. Stronger margins, rising subscriber base Operational profitability also improved significantly, with EBITDA rising by 65.9%, and the EBITDA margin expanding by 7.2 percentage points to 46.6%, a key metric watched by investors. Investor sentiment has responded positively, with MTN's share price rebounding from last year's 24.24% year-to-date loss. As of April 29, 2025, the stock was trading at N240 per share, reflecting a 20% YTD gain.
Zawya
03-03-2025
- Business
- Zawya
MTN Nigeria net loss grows by 192% to $266mln
MTN Nigeria Plc net loss grew by more than 192 percent year on year to N400 billion at the end of financial year 2024, according to its audited report. Analysis of the financial report revealed that the telecom company grew revenue by 36.1 percent year on year to N3.360 trillion from N2.468 trillion in the comparable year in 2023. Its improved top line performance was bolstered by strong data and voice revenue, up by 49.1 percent and 14.5 percent, respectively. In the same year, MTN Nigeria reported a significant surge in expenses, which toned down the beauty of the telecom impressive revenue growth. In 2024, MTN Nigeria expenses surged by 61.7 percent year on year to settle at N2.047 trillion from N1.266 trillion in 2023. The breakdown showed that its costs of sales in 2024 increased by 30.1 percent to N528.187 billion from N406 billion. Reflecting high inflationary environment, MTN Nigeria's operating expenses skyrocketed by 76.6 percent to N1.519 trillion from N860 billion in 2023. A significant growth in net finance costs drained the earnings strength and weaken profitability. Bombed by about 145 percent surge in lease costs, net finance costs rose by 91 percent year on year to N403.207 billion from N211.112 billion. Its borrowing costs also increase by 37.1 percent to N172 billion in the same year. Net foreign exchange losses increased by 25 percent to N925.361 billion, from N740 billion as a result of significant foreign currency priced liabilities. About N562 billion was realised as FX loss in 2024, which was 438 percent above N104.446 billion FX loss realised in 2023. MTN Nigeria said the improved liquidity in the forex market enabled the telecom company to reduce the outstanding LC US$ obligations by 95 percent to approximately US$20.8 million, tapering the impact of future naira depreciation and the associated finance costs. It said the reduction accounted for approximately 86 percent of the realised net forex losses of N561.9 billion recorded in the period, while the unrealised portion amounted to N363.4 billion. Speaking to the result, MTN Nigeria CEO Karl Toriola said, 'We are encouraged by the resilience of our business in FY 2024, which reflects our strong commitment to driving growth and managing costs. 'Despite facing significant macroeconomic headwinds, including record-high inflation, as well as ongoing currency and energy price volatility, we remained focused on executing our strategy and creating long-term value for our stakeholders. 'We are grateful to the authorities for the recent approval of tariff adjustments, which are essential for our industry's sustainability and crucial for addressing our negative capital position. 'Navigating a challenging operating environment inflation reached 34.8 percent in December 2024, averaging 33.2 percent for the year, significantly impacting operational costs and consumer purchasing power. 'The Monetary Policy Rate (MPR) was raised on multiple occasions throughout the year, reaching 27.5 percent, aimed at counteracting naira volatility and elevated inflation. This increased our cost of borrowing. 'In the foreign exchange market, the naira depreciated to N1,535/US$ by the end of 2024 (from N907.1/US$ on 31 December 2023), as businesses and consumers continued to grapple with escalating costs. However, we 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 H2,' he said. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
