MTN Nigeria and Airtel Africa Plc are expected to return to profitability in 2025 after enduring significant FX losses from naira devaluation. MTN posted over N925 billion in FX losses for 2024, while Airtel’s losses decreased to $153 million. Strategic adjustments in financial practices are improving their revenue prospects amid rising operational costs due to inflation and energy prices.
MTN Nigeria and Airtel Africa Plc, both major telecommunications companies listed on the Nigerian Exchange (NGX), are predicted to achieve profitability by 2025, following significant foreign exchange (FX) losses that stemmed from the devaluation of the Nigerian naira, which affected operators’ balance sheets. In the financial year 2024, MTN Nigeria reported FX losses exceeding N925 billion, adversely impacting its financial standing.
Airtel Africa, on the other hand, incurred $153 million in FX losses for the nine-month financial year 2025, representing a notable decrease from $903 million the previous year. Analysts at CSL Stockbrokers Limited expressed optimism, stating, “Looking ahead, we believe the worst is over for telecom operators, and we expect them to return to profitability in 2025.”
The performance of Nigeria’s telecommunications sector revealed a mix of outcomes across its listed companies in 2024. MTN Nigeria exhibited strong revenue growth, achieving a 36.0% year-on-year increase to N3.36 trillion, while Airtel Africa experienced a 5.8% decline in revenue, dropping to $3.66 billion.
CSL analysts noted that Airtel’s revenue decline resulted from substantial currency devaluations in key markets. MTN Nigeria’s revenue growth was propelled by a 49.1% boost in data revenue and a 14.5% increase in voice revenue. Conversely, Airtel’s data and voice revenues fell by 2.8% and 14.7%, respectively, due to currency challenges.
Both companies are facing rising operational costs driven by high inflation and energy prices. MTN Nigeria reported an 88.1% year-on-year increase in Direct Network Operating Costs, amounting to N1.23 trillion in FY 2024, while Airtel managed a slight 1.1% decrease in operational costs.
FX losses have been a significant hurdle for public telecommunications operators in Nigeria. MTN’s financial strategies included restructuring tower lease agreements to limit foreign currency exposure. The revised contracts now focus on Naira-based payments, which reduced FX losses and enabled MTN to report a quarterly profit of N114.49 billion in Q4 2024, reversing a previous year’s loss.
Similarly, Airtel took actions to localize its foreign debt, which effectively reduced FX losses to $153 million in 9M 2025. This financial approach led Airtel to achieve a net profit of $248 million, showing a substantial improvement from the previous year’s results. CSL Stockbrokers noted a positive outlook based on recovering mobile subscriptions, tariff increases, network expansions, and the shift from analog to digital.
In summary, both MTN Nigeria and Airtel Africa are on paths to return to profitability by 2025, overcoming significant FX losses caused by currency devaluation. While MTN has focused on transforming its financial strategies significantly, Airtel has also made strides in reducing its currency exposure. Both companies continue to navigate rising operational costs, yet they display optimistic signs of recovery in their respective markets, bolstered by increased revenue growth and strategic adjustments.
Original Source: dmarketforces.com
