MTN Nigeria’s pre-tax profit declines by 75.7% year-on-year in Q3, 2023

MTN Nigeria Communications Plc recorded a year-on-year decline of 75.7% in its profit before tax to N32.08 billion in Q3 2023, as compared to N132.04 billion in Q3 2022.

According to the group’s financial statement for the period ending September 30, 2023, the group recorded a revenue of N614.2 billion in Q3 2023, a 21.4% year-on-year increase from the corresponding period in 2022.

The figure modified the group’s nine-month revenue to N1.78 trillion, an increase of 21.76% year-on-year from the corresponding quarter in 2022.

Key Highlights Q3 2023 vs Q3 2022

Revenue: N614.2 billion, +21.4% YoY

Direct network operating costs: N170.6 billion, +44.5% YoY

Operating profit: N186.9 billion, +0.8% YoY

Finance income: N4.7 billion, +311.5% YoY

Finance costs: N159.5 billion, +192.8% YoY

Net finance costs:

Profit before tax: N32.1 billion, -75.7% YoY

Profit for the period: N18.7 billion, -78.6% YoY

Earnings per share: N0.93, -78.0% YoY

Total assets: N3.078 trillion, +13.4% YTD

More insights

In Q3 2023, data accounted for the largest share of MTN’s revenue with N278.9 billion, marking a year-on-year increase of 38.8% from the corresponding quarter in 2022.

During the quarter, voice calls generated N226.5 billion in revenue, SMS generated N16.7 billion, and interconnect and roaming services generated N43.1 billion in revenue.

The year-on-year slump in the company’s pre-tax profit is attributable to the net finance costs, which increased by a whopping 190.2% from N53.3 billion in Q3 2022 to N154.8 billion in Q3 2023.