MTN considers raising tariffs to recover $101 million in currency fluctuations


MTN has announced a collaboration with regulators in multiple markets, such as Nigeria, to seek approval for tariff increases on voice and data services. This move aims to bolster profitability and enhance the company’s financial standing.

Following the telco’s report of a decrease in full-year profit attributed to the devaluation of the naira, its major business, MTN Nigeria, incurred a post-tax loss of ₦135 billion ($101 million).

Referencing the expense profile of the telecommunications company in Nigeria, the Group’s CEO, Ralph Mupita, emphasized the necessity for tariff increases to offset the operational costs of maintaining the network

MTN Group announced a significant decrease in its headline earnings per share (HEPS), a key profit metric, reporting a 72.3% drop to 315 cents for the year ending on December 31, down from a restated 1,137 cents in the previous year. Additionally, adjusted HEPS declined by 9.5% to 1,203 cents.

In June, the Central Bank of Nigeria introduced new forex regulations, leading to a reported 96.7% devaluation of the naira by December, according to MTN. Additionally, the National Bureau of Statistics revealed that Nigeria’s annual inflation rate rose to 28.92% in December 2023 from 28.20% in November.

Mupita has disclosed that MTN Nigeria is currently engaged in discussions to reevaluate certain contracts with cell tower operators, including IHS Holding Ltd. and ATC. The objective is to mitigate additional cost escalations resulting from potential naira devaluations, as the majority of network expenses are linked to these agreements.

In January, the telecommunications company reported a pre-tax loss of ₦177.8 billion, citing a substantial increase in foreign exchange losses from ₦81 billion in 2022 to ₦740 billion.

Despite the challenges faced in 2023, MTN Group reported a notable increase in revenue and subscriber rates. The company’s revenue surged by 13.5% to R210 billion ($11 billion), with data revenue accounting for R84 billion ($4.4 billion), voice revenue contributing R83 billion ($4.3 billion), and MTN MoMo, its fintech revenue arm, totaling R21 billion ($1.11 billion).




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