According to the network provider, MTN Nigeria has declared that it will hold an extraordinary general meeting with its shareholders to emphasize on how to sort out the capital loss in 2023.

From the news gathered on Tuesday, the Nigerian Exchange Limited, discussed on  the EGM which is to hold later in Lagos.

The EGM notice showed that it would have only one special business which is: “To consider and discuss possible measures for addressing the loss of capital by the company for the year ended December 2023.”

MTN Nigeria recorded a depletion in its retained earnings and shareholder’s fund for the year under review due to a net loss after tax of N137bn, driven by a N740bn foreign exchange loss.

The NGX said,  the telecoms organization stated that service revenue grew by 22 percent to N2.5tn but recorded a N137bn loss after tax.

MTN Nigeria’s retained earnings and shareholders’ fund to negative N208bn and N40.8bn, respectively.

Karl Toriola,the Chief Executive Officer of MTN Nigeria declared, “2023 witnessed a very challenging operating environment characterised by rising inflation, currency devaluation and foreign exchange shortages, complicated by geopolitical disruptions and cash shortages in Q1 arising from a redesign of the naira. These factors created severe headwinds for our customers and our business during the year.

“The significant devaluation of the naira in 2023 resulted in a materially higher net forex loss of N740.4bn (2022 restated: N81.8bn), reflected within net finance costs, which resulted in a reported loss after tax of N137.0bn compared to a restated PAT of N348.7bn in 2022. This has resulted in negative retained earnings and shareholders’ equity at the end of December 2023 of N208.0bn and N40.8bn, respectively.”

Toriola said, “We anticipate a challenging 2024 as we tackle the complexity and ongoing effects of high inflation and elevated forex volatility on our operations. Given the material uncertainty these present in the near term, we have suspended our medium-term guidance for EBITDA margins. We maintain the medium-term guidance for service revenue.

“In light of the negative retained earnings at the end of 2023, the board of directors has resolved not to declare a final dividend for 2023. Looking forward, we remain focused on sustaining our commercial momentum and accelerating our service revenue growth, improving the profitability of the business and strengthening the balance sheet.”