*AS total subscribers increase by 1.6% to 80.9m
*Recovers 34% USSD debt at N74b from banks
*Zero dividend for FY 2024
*Invests N3.6b through the MTN Nigeria Foundation
*Projects 2025 service revenue growth of mid -40%
WorldStage Newsonline– MTN Nigeria Communications Plc (MTN Nigeria) on Friday released its audited results for the year ended 31 December 2024 Forex with losses arising from the revaluation of foreign currency-denominated obligations resulted in a loss after tax of N400.4 billion from N137 billion loss in 2023, albeit with a positive result of N114.5 billion profit in fourth quarter (Q4).
The highlights of results showed total subscribers increased by 1.6% to 80.9 million; Active data users increased by 7% to 47.7 million; Service revenue increased by 35.9% to N3.3 trillion; Earnings before interest, tax, depreciation and amortization (EBITDA) increased by 9.2% to N1.3 trillion; EBITDA margin decreased by 9.6 percentage points (pp) to 39.1%; Loss after tax was N400.4 billion (Profit after tax of N114.5 billion in Q4 2024); Profit after tax (PAT) adjusted for the net forex loss decreased by 35.2% to N247.3 billion; Capital expenditure (capex), excluding leases, decreased by 1.3% to N443.5 billion; Positive free cash flow of N388.2 billion; Final dividend: In light of the negative retained earnings, the board did not recommend a dividend for FY 2024.
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 recordhigh 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.
“We made significant progress in driving the growth of our commercial operations, boosted by our ongoing investments in the coverage and capacity of our network to accommodate traffic growth and enhance the quality of service. This was a major focus of our N443.5 billion capex (ex-leases) in the year.
“Our subscriber base climbed further to 80.9 million, up 1.6%, despite the effects of the Nigerian Communications Commission’s (NCC) industry-wide directive on NIN-SIM registration. Likewise, active data subscribers grew by 7% to 47.7 million. Our diligent gross connection and churn management initiatives, including ongoing innovation in our customer value propositions, supported the growth of our subscriber base.
“These interventions underpinned the significant growth in the traffic on our network, reflecting the structural demand for our digital and connectivity services. Data traffic rose by 42.9%, with average monthly data usage per user growing by 33.6% to 11.2GB.
“In fintech, we recalibrated the business’ growth strategy to improve the quality and stickiness of our wallet base and the development of advanced services, supported by the promotion of MoMo PSB app. In this regard, we revamped our customer acquisition strategy. Although this intervention resulted in a decline in active wallets (down 46.6% to 2.8 million), it was essential to establish a sustainable growth trajectory for our MoMo PSB ecosystem.
“Supported by strong commercial momentum, service revenue was up by 35.9%, led by data, voice, fintech and digital services, as well as the once-off revenue recognition relating to outstanding USSD debt owed by deposit money banks.
“Thanks to our regulators’ intervention, the uncertainty around the outstanding USSD debt recovery has been resolved, enabling us to recognise approximately N74 billion in revenue. As at December 2024, approximately 34% had been repaid, and the remaining balance was recognised as receivables, which are expected to be settled in 2025. Excluding the USSD revenue recognition, underlying service revenue growth remained robust (up 32.8%), and tracked at the upper end of our FY 2024 guidance of ‘high-20% to low 30%’.
“We invested N3.6 billion through the MTN Nigeria Foundation in community focused projects, impacting over 613,000 individuals across 225 communities.
“These initiatives included revitalising healthcare facilities, awarding scholarships, and enhancing educational infrastructure to create lasting value for society.”
On outlook 2025, he said the recent approvals of new tariffs by the regulator will enable it to sustain the required investments in our networks, which are needed to enhance customer experience and safeguard the sustainability of our business and industry.
“In light of the developments in our operating context, we expect FY 2025 service revenue growth of ‘at least mid-40%’ as tariff adjustments take effect,” he said.
“We also anticipate an EBITDA margin of ‘at least mid-40%’ and capex intensity in the ‘upper teens’, in line with our disciplined approach to capital allocation.”
