MTN Nigeria posted another second quarter (Q2) 2024 loss, recording a significant $312.4 million dip in half year (H1) 2024—six times more than the $51.1 million it lost in H1 2023.
MTN’s financial woes are largely due to Nigeria’s unstable currency, which has driven operating costs up. The telco has significant dollar-denominated costs, including its tower contract with IHS Towers.
While revenue grew to $921 million, costs also increased. The cost of sales jumped 33% to $151.7 million, with operating expenses hitting $444.3 million.
To reduce its losses, MTN is reducing its dollar-based costs by partnering with tower company, ATC Nigeria, to supply 2,500 towers in 2025 following its scuffle with IHS towers—a deal believed to be valued in naira. Additionally, MTN is joining other telcos seeking regulatory approval for price increases in tariff plans in hopes of buffering the revenue base.
Despite its operating financial woes, MTN’s customer base continues to grow. The company now has 79.4 million mobile subscribers and 5.5 million mobile money users.
Data revenue $437.87 million has overtaken voice revenue $380.67 million, as customers embrace cheaper internet calls over voice plans. One hour on a WhatsApp call, for example, takes just 300MB, which costs about $0.12, but one hour on a voice call costs twice as much—and the allure is particularly in making international calls at cheap data rates.
