The Nation Newspaper MTN, Airtel take hit on forex exposures
volatility in the country has taken a huge toll on the MTN Nigeria and Airtel Africa’s operations as both service providers posted huge losses after tax. While MTN posted a loss after tax of N392.
“To curb inflation, the Central Bank of Nigeria increased the Monetary Policy Rate by 4pp to 22.75per cent, which has driven up funding costs. These factors have caused significant difficulties for businesses operating in Nigeria, including MTN Nigeria, putting additional pressure on consumers, the cost of doing business and further foreign exchange losses.
Also speaking on the trading update, outgoing Chief Executive Officer at Airtel Africa, Olusegun Ogunsanya, said the opportunity to grow the market remains compelling.“The growth opportunity that exists across our markets remains compelling, and we are well positioned to deliver against this opportunity. We will continue to focus on margin improvement from the recent level as we progress through the year.
“Notwithstanding these headwinds, we recorded increased activity within the base, with voice traffic rising by 5.1per cent and data traffic by 40.6per cent. This is a result of the consistent growth in demand for data and voice, supported by our attractive offers to customers and continuous investment in network quality and coverage.
EBITDA, however, came under pressure, declining by 1.9per cent, primarily because of a further depreciation of the naira in the quarter, exacerbated by higher general inflation and energy costs.
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