MTN Nigeria Communications Plc (MTNN) released its 2023 full year financials, reporting a loss of N137.02 billion as against profit after tax N348.73 billion in 2022, resulting in a loss per share of N6.38, when compared with EPS of N16.76 in 2022.

The dip in earnings was underpinned by the marked expansion in net foreign exchange losses, highlighting the foreign exchange devaluation in the year.

Revenue grew by 22.7% in 2023 full year, underpinned by a broad-based increase across the voice, data, digital, fintech and other services channels.

As noted in third quarter of 2023, data once again was the main driver of revenue growth.

management alluded the performance to the revamp of MTNN’s data bundle offerings and sustained investments in network coverage and capacity underpinned the performance of the data channel.

As a result, data usage increased by 29.1% to 8.6GB – 4G coverage: +240bps to 81.5% of the population | 5G coverage: 11.3% of the population and smartphone penetration printed higher at 55.6%.

In addition, MTNN recorded a 44.9% growth in data traffic, with the 4G network accounting for c. 82.0% of total traffic, while the 5G network contributed 5.2% of total traffic.

Meanwhile, the growth in voice revenue remained steady, increasing by 9.7% on a growth in mobile subscriber base and revamped voice propositions.

Pertinently, MTNN’s subscriber base in fourth-quarter net additions: +2.10 million grew to 79.70 million as of 2023 year-end, indicating the addition of 4.10 million subscribers.

Total expenses for the year grew by 34.4% in fourth-quarter of 2023, following the impact of (1) higher inflation and energy costs, (2) Foreign exchange devaluation, and (3) the introduction of VAT on tower leases as per the 2023 Finance Act, exacerbated by a N30.20 billion additional provision for Federal Inland Revenue Services (FIRS)VAT assessment.

Consequently, EBITDA margin declined to 48.7%, trailing market analyst
2023 full year estimate by 119bps and falling short of management’s medium-term key performance guidance (53.0% – 55.0%).

Net finance costs presented as MTNN’s biggest pressure point in 2023 full year, influenced by a significantly higher foreign exchange loss of N740.43 billion, translating to a 9.0x increase from 2022 full year outturn of N81.82 billion.

The higher FX loss points to the impact of the currency devaluation on tower lease costs and borrowings.

Overall, MTNN recorded a pre-tax loss of N177.89 billion in 2023 full year against a pre-tax profit of N518.82 billion in 2022 full year.