N131 Billion Loss Unsettles MTN

<h4>N131 Billion Loss Unsettles MTN<&sol;h4>&NewLine;<p><strong><a href&equals;"https&colon;&sol;&sol;openlife&period;ng&sol;">OpenLife Nigeria<&sol;a><&sol;strong> reports that a monumental loss of N131&period; 4 billion has unsettled telecommunication giant&comma; MTN&period;<&sol;p>&NewLine;<p>According to reports the company suffered a foreign exchange loss of N131&period;4 billion&comma; dragging its profits down&comma; its 2023 second-quarter report has revealed&period;<&sol;p>&NewLine;<p>The report showed a pre-tax profit falling a whopping 64 per cent to N44&period;6billion&period; This took its half-year profits to N200&period;3 billion compared to N268&period;6 billion same period in 2022&period;<&sol;p>&NewLine;<p>The Q2 report also revealed that &OpenCurlyDoubleQuote;MTN recorded revenue of N590&period;6 billion&comma; representing over 23&period;3 per cent year-over-year &lpar;YoY&rpar;&semi; gross profit of N393&period;5 billion&period;<&sol;p>&NewLine;<p>This represents over 22&period;9 per cent YoY and operating profits of N214&period;9 billion&comma; representing 24&period;3 per cent YoY&period;<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;Pre-tax profits of N44&period;6 billion&semi; forex losses of N131&period;4 billion&semi; finance cost of N182 billion&comma; representing over 259 per cent YoY&semi; total debts of N855 billion&comma; compared to N689&period;6 billion&comma; recorded in December 2022&period;<&sol;p>&NewLine;<p>Net assets of N258&period;2 billion&comma; compared to N355&period;6 billion&comma; recorded in December 2022 and working capital of N588&period;7 billion&period;”<&sol;p>&NewLine;<p>In its reaction&comma; MTN averred that the Central Bank of Nigeria’s recent forex policy caused a significant 60 per cent movement in the exchange rate to N756&period;24 per dollar by the end of June 2023&period;<&sol;p>&NewLine;<p>The company believed that the liberalization of the forex system and removal of the fuel subsidy will attract foreign capital&period;<&sol;p>&NewLine;<p>They also believe that it will spur foreign direct investment&comma; and have a net positive impact on their longer-term outlook&comma; despite the fact that the immediate impact led to unrealised currency losses for H1&period;<&sol;p>&NewLine;