MTN considers tariff increases to recoup $101 million in forex losses

MTN Group reported that its headline profits per share (HEPS), one of the primary profit indicators, fell by 72.3% to 315 cents for the year ended December 31, from a restated 1,137 cents the previous year, while adjusted HEPS fell by 9.5% to 1,203 cents.

Previously, the Central Bank of Nigeria implemented new forex regulations in June, which MTN claimed resulted in a nearly 96.7% devaluation of the naira by December, while the National Bureau of Statistics announced that Nigeria’s annual inflation rate increased to 28.92% in December 2023 from 28.20% in November.

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Mupita disclosed that MTN Nigeria is in talks to renegotiate some contracts with cell tower operators, including IHS Holding Ltd. and ATC, to prevent further cost increases caused by probable naira devaluation. This is because these agreements account for the vast majority of network expenses.

In January, the telco reported a pre-tax loss of ₦177.8 billion due to a huge foreign exchange loss that grew from ₦81 billion in 2022 to ₦740 billion.

Despite a tough 2023, MTN Group announced a strong increase in revenue and customer rates. Its revenue is expected to increase by 13.5% to R210 billion ($11 billion), with data revenue accounting for R84 billion ($4.4 billion), voice revenue for R83 billion ($4.3 billion), and MTN MoMo, its fintech revenue arm, accounting for R21 billion ($1.11 billion).

Techrectory with Agency Report.