MTN Nigeria Communications (MTNN) Q2 2024 earnings summary

Executive summary

• Service revenue grew 32.6% year-over-year to N1.5 trillion, driven by strong data, voice, fintech, and digital services performance.

• Total subscribers increased 2.9% to 79.4 million; active data users rose 11.1% to 45.6 million; active MoMo wallets surged 73.9% to 5.5 million.

• Despite topline growth, net forex losses from naira depreciation led to a loss after tax of N519.1 billion and negative shareholders' equity.

• Adjusted profit after tax, excluding net forex losses, was N102.3 billion, down 56% year-over-year.

• The company is executing initiatives to restore profitability and strengthen its balance sheet amid macroeconomic headwinds.

Financial highlights

• EBITDA declined 10.9% to N547.7 billion; EBITDA margin fell 17.4pp to 35.6%.

• Net foreign exchange losses rose 95.2% to N887.7 billion, mainly from naira depreciation.

• Capex increased 19.9% to N319.9 billion; core capex (excluding leases) declined 17.4% to N145.6 billion.

• Free cash flow was N362.5 billion, down 7.1% year-over-year.

• Net debt-to-EBITDA ratio stood at 1.1x, with a cash balance of N201.8 billion at period end.

Outlook and guidance

• FY 2024 guidance: EBITDA margin expected at 33–35%, capex intensity in upper single digits, and service revenue growth in high-20% to low-30% range.

• Guidance assumes no tariff increase, no successful tower agreement renegotiation, and average exchange rates of N1,400–N1,700/US$.

• Focus remains on margin recovery, capex optimisation, and reducing US$ exposure.

• Ongoing engagement with authorities for regulated tariff increases to support industry sustainability.

• Continued investment in fintech, digital, and network infrastructure to capture growth opportunities.