MTN and Airtel have lost N479B in currency revaluation

Information reaching Kossyderrickent has it that MTN and Airtel have lost N479B in currency revaluation.

MTN and Airtel LOSES N479 BILLION:

In its nine-month financial report for the year, MTN recorded a forex loss of N232.8bn on its net foreign currency liabilities following the devaluation of the naira from 461/$1 in December 2022 to 777/$1 in September 2023.

It noted that its forex loss in the corresponding period of 2022 was N27.9bn. The firm further highlighted that given the scarcity of forex in the market, it had to rely significantly on letters of credit for its capital expenditure needs.

It said, “Given the protracted forex paucity in the market, MTN Nigeria utilised trade lines to fund the establishment of confirmed irrevocable letters of credit for its network capex investments to sustain revenue growth.

MTN Nigeria also grew earnings from SMS, reporting Nigerians sent text messages worth N16.45 billion within the three months of Q2 2022, raising the turnover from the segment above the N11 billion grossed from its users in Q2 2021.

At the end of the period in review, MTN Nigeria was able to close the second quarter of this year with N84.80 billion profit after tax, in contrast to the N68.08 billion profit the network provider had recorded a year before. For Airtel, it recorded an after-tax foreign exchange loss of $317m.

It highlighted, “Loss after tax was $13m driven largely by a foreign exchange loss of $471m recorded in finance cost before tax and $317m after tax because of the devaluation of the Nigerian naira in June 2023. This impact has been classified as an exceptional item.”