MTN Nigeria Communications Plc 2024FY Earnings Note | Macroeconomic Constraints Persist
MTN Nigeria Communications Plc (MTNN) recorded strong revenue growth in 2024FY, driven by expanding data, voice and fintech services. The company benefited from increased demand for digital connectivity and financial services, which helped offset the impact of currency devaluation, rising inflation, and high interest rates. However, profitability declined significantly, as FX losses, higher network operating costs, and elevated lease expenses exerted pressure on margins.Looking ahead, MTNN’s profitability is expected to improve in 2025FY, supported by tariff adjustments, cost optimization strategies, and ongoing lease restructuring. The company’s efforts to reduce USD exposure, renegotiate lease agreements, and improve operational efficiency should help mitigate FX risks and stabilize margins.
ARM Securities Limited is a full-service brokerage house that offers best-in-class brokerage services to local as well as foreign private and institutional investors. Formerly known as Hamilton Hammer, the Company commenced operation in 1994 and was acquired by ARM Investment Managers in 2008--an acquisition which has successfully re-positioned the company as a recognized brokerage firm in Nigeria. The Company is a dealing member of the Nigerian Stock Exchange (NSE) and is regulated by Securities and Exchange Commission (SEC). ARM Securities research team provides insightful commentaries on the Nigerian economy and its equity and debt markets using an approach which incorporates a thorough understanding of the fundamentals of the industries and companies under coverage. The research therefore adopts an integrated methodology of top-down analysis and bottom-up stock selection, which focuses on publicly quoted companies on the Nigerian Stock Exchange that are judged to offer the highest potential for earnings growth. In addition, its analysts provide periodic commentaries on a range of topical global and local issues which provide investing clients with a holistic view of the opportunities and risks in today’s financial market landscape.
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