MTN suffered a foreign exchange loss of N131.4 billion, dragging its profits down, its 2023 second-quarter report, has revealed.
The report showed a pre-tax profits falling a whopping 64 per cent to N44.6 billion. This took its half-year profits to N200.3 billion compared to N268.6 billion same period in 2022.
The Q2 report also revealed that “MTN recorded revenue of N590.6 billion, representing over 23.3 per cent, year-over-year (YoY); gross profit of N393.5 billion, representing over 22.9 per cent YoY and operating profits of N214.9 billion, representing 24.3 per cent YoY.
“Pre-tax profits of N44.6 billion; forex losses of N131.4 billion; finance cost of N182 billion, representing over 259 per cent YoY; total debts of N855 billion, compared to N689.6 billion, recorded in December 2022; net assets of N258.2 billion, compared to N355.6 billion, recorded in December 2022 and working capital of N588.7 billion.”
In its reaction, MTN averred that the Central Bank of Nigeria’s recent forex operations changes caused a significant 60 per cent movement in the exchange rate to N756.24 per dollar by the end of June 2023.
The company believes that the liberalisation of the forex system and removal of the fuel subsidy will attract foreign capital, spur foreign direct investment, and have a net positive impact on their longer-term outlook, despite the fact that the immediate impact led to unrealised currency losses for H1.