MTN Nigeria has released its financial results for the nine months ending September 30, 2024, reporting a 0.9% decrease in total subscribers to 77.0 million, primarily due to the NIN-SIM directive. The company closed the nine-month period with a significant loss after tax of ₦514.9 billion, compared to a profit of ₦14.9 billion in the corresponding period of 2023.
Despite the overall decline in subscribers, MTN Nigeria saw a 33.6% increase in service revenue and an 18.0% growth in fintech revenue. However, the number of active mobile money (MoMo PSB) wallets declined by 21.8%. The NIN-SIM verification exercise led to a loss of 64.3 million subscriptions across Nigerian mobile network operators, though MTN and Airtel managed to maintain their top market positions.
During this period, MTN Nigeria focused on enhancing its fintech business by improving wallet quality, advancing services, and upgrading the MoMo PSB app. In August 2024, MTN Nigeria acquired a 7.17% minority stake in MoMo Payment Service Bank (MoMo PSB) from Acxani Capital, making MoMo PSB a wholly-owned subsidiary of MTN Nigeria. Two months after the acquisition, MoMo PSB launched an inbound remittance service.
MTN Nigeria’s EBITDA declined by 5.3% to ₦860.2 billion. The company attributed this decline to the depreciation of the naira, higher energy costs, and general inflation. During the period, MTN Nigeria renegotiated tower lease contracts with IHS Towers, which included an energy cost component linked to the cost of providing diesel power.
Additionally, MTN Nigeria has been granted permission to generate 15.94 megawatts (MW) of electricity across four captive power plants in Lagos State. This move is part of the company’s efforts to manage energy costs and improve operational efficiency.
Airtel Africa, another major telecom operator in Nigeria, highlighted its renewal of tower lease agreements with American Tower Corporation (ATC) and its focus on renewable energy solutions to reduce diesel dependency and operating costs.
In the final quarter of 2024, MTN Nigeria aims to prioritize the recovery of its subscriber base impacted by the NIN-SIM directive. The company also intends to engage with regulatory authorities to make tariff adjustments to support the recovery of its profitability.
Karl Toriola, CEO of MTN Nigeria, emphasized the need for tariff increases, stating, “If the tariff doesn’t go up, the telco will shut down.” He reiterated the importance of returning the telecommunications sector to profitability to sustain its operations, as telcos call for tariff increases in response to economic challenges.
