MTN Nigeria released its half-year financial results ending in June, reporting a decline in earnings due to higher energy prices and increasing costs that impacted profit margins.
According to the financial report released on Friday, MTN Nigeria’s pre-tax profit witnessed a 25.4% decrease, reaching N200.4 billion, while earnings per share dropped by 29.3%.
Karl Toriola, the CEO of MTN Nigeria, acknowledged the challenges posed by higher energy prices and growing costs but highlighted the company’s efforts to manage the impact through provisions in tower contracts and forex harmonization timing. He emphasized the commitment to the company’s commercial strategy, focusing on operational efficiency to drive growth in earnings, cash flow, and returns over the medium term.
Nigeria holds a significant position in MTN Group’s portfolio among its 19 operating markets. Recently, the Group announced a substantial $3.5 billion investment in Nigeria over the next five years. Ralph Mupita, Group CEO, expressed confidence in Nigeria’s potential to become the world’s fifth-largest economy, particularly if it seizes the digital opportunities available.
Despite the earnings decline, MTN Nigeria experienced growth in its mobile customer base, which increased by 4.0% to 77.1 million during the reporting period. Additionally, active data users rose by 11.5% to 41.0 million, while active mobile money wallets grew by 1.1 million, reaching 3.1 million.
Despite facing a challenging operating climate with inflation and forex volatility, MTN Nigeria remains committed to fostering its fintech business. The company currently boasts over 22 million registered MoMo PSB wallets and plans to scale its fintech ecosystem in line with its Ambition 2025 strategy. To achieve this, MTN Nigeria aims to stimulate increased engagement and activity through consumer education programs and the provision of more advanced fintech services.