Broadcasting
MTN and its FY2023 Financial Results Abracadabra
By Abdullahi Taminu Bida
MTN Nigeria Communications Plc (MTN Nigeria), the leading telecommunication service provider in the country, on Thursday, 29 February, 2024, submitted its full-year audited report for the year ended 31 December, 2023 to the Nigerian Exchange (NGX). The report showed very impressive highlights like growths in total subscriber base, active data users, active mobile money (MoMo PSB) wallets, service revenue and earnings before interest, tax, depreciation and amortization (EBITDA). Despite all these positive highlights in the Statement of Accounts, the media and most analysts, as the MTN Nigeria would wish, ran with the forex loss of N740.4 billion as well as the loss before tax of N177.8 billion.
Karl Toriola, Chief Executive Officer, MTN Nigeria
According to MTN Nigeria, the losses are as result of “rising inflation, currency devaluation and foreign exchange shortages, complicated by geopolitical disruptions and cash shortages in Q1 arising from a redesign of the naira. Karl Toriola, the Chief Executive Officer of the company, noted that “MTN Nigeria’s operations are exposed to foreign currency volatility on its operating and capital expenditure. The most significant of these exposures relates to the tower lease costs, which comprised the bulk of the 45-50 percent foreign currency exposure in our operating expenses in 2023.” Specifically, the company attributed the poor financial performance for the year under review mainly to the foreign exchange loss of N740.4 billion as a result of a 96.7 percent movement in the exchange rate from N461/$1 in December 2022 to N906/$1 in December 2023.
From media reports many of the analysts seem to look at the MTN Nigeria’s 2023 Financial reports from the prism of the company – harsh operational environment, unfavourable government policies and the general macro-economic conditions. They seem to be so convinced by the jaundiced narrative the telecom company has deliberately crafted to hoodwink stakeholders to its side that they barely look at the submitted report critically.
To start with, MTN Nigeria listed on the floor of the Nigerian Exchange in 2019 as part of its bargain with the government to have its $5.2 billion fine, for failure to disconnect its subscribers who were yet to link their National Identification Numbers to their telephone lines, slashed. Prior to the listing, MTN Nigeria was a private company and had no disclosure requirements unlike now, as a publicly quoted company, it is required to meet the disclosure requirements including the submission of quarterly results.
Let us highlight some of the items as disclosed in the report. The Loss after tax was N137.0 billion due to net forex loss; Profit after tax (PAT), adjusted for the net forex loss, decreased by 14.3 percent to N344.5 billion; Earnings per share (EPS) declined to negative N6.38 kobo (N16.56 kobo adjusted for the net forex loss, down 14.1 percent); the Net loss for the year resulted in a depletion of its retained earnings and shareholders fund to negative N208.0 billion and N40.8 billion, respectively; the Capital expenditure (capex) increased by 13.2 percent to N571.0 billion; and the company’s liabilities and assets were N3.22 trillion and N3.18 trillion respectively.
The report, as indicated, showed that the company’s liabilities are bigger than its assets, an admission that MTN Nigeria is technically insolvent. The reality is that this insolvency would remain for a long time without shareholder funding and may trigger default. This also throws up the going concern questions. How can MTN Nigeria’s auditors sign off the on the going-concern assessment of the company with such reality – a case of financial illiteracy or poor oversight?
Also, the issue of lease agreements leaves plenty room for suspicion. Is attributing an item that, according to the company, constitutes 45-50 percent of its foreign currency exposure without naming the service provider a deliberate ploy to conceal pertinent facts? It is a known fact that MTN has large ownership stakes in the companies that provide these lease services and the ‘losses’ the company posts as a result of the forex fluctuations, it ‘gains’ in form of returns on investment.
Similarly, the report indicated that MTN Nigeria changed its “measurement” of FX loses from “realized FX differences on dollar indexed leased” to the N/US$ spot exchange rate at the end of each reporting period. This, it claims, is in line with the IAS 21 and FIRS 16 and led to adjustments of 2021 and 2022 results. Why would MTN Nigeria limit the restatement of its lease liabilities to 2021 and 2022 only and not 2020 and 2019 financials when it got listed on the NGX? It is also curious that forex for the H1 2023 was not restated – when objectively there was nothing that could have triggered the IFRS 16 treatment to be altered in H2. In fact, the report showed that MTN Nigeria did a restatement on the H1 FX related transaction that was undertaken in October 2023.
These may be pointers to a possibility of sharp practices and willful concealment on the part of MTN Nigeria in contravention of the extant disclosure rules of the Exchange. This possible concealment, probably aimed at avoiding tax liabilities and/or shareholder obligations, should be of interest to industry stakeholders, in particular and Nigerians in general. MTN Nigeria’s over two-decade operations in Nigeria leaves much to be desired as there have been cases that border around corporate governance such as tax defaults, illegal repatriations of profits and other corporate vices.
Abdullahi Taminu Bida, writes for Abuja
Fifteen years ago, something truly special dropped onto the music scene: Flavour N’abania’s second album, Uplifted. This was a first showcase of his talent. With powerful vocals, masterful highlife production, and a deep connection to his cultural roots, Uplifted solidified Flavour’s reputation as a gifted artist.
At the time of its release, Uplifted smashed through borders and cultural divides, all thanks to Flavour’s deep commitment to celebrating his Nigerian roots, especially his Igbo heritage. This powerful connection to his culture has made him a major force, not just in Nigeria, particularly in the East, but also among the Igbo community dotted around the world.
The sheer success of Flavour’s cultural expression is highlighted by Spotify data from Uplifted and his other tracks. Even though his songs are deeply rooted in his culture and often sung in Igbo, they’re getting massive plays all over the globe.
Uplifted itself has stayed a big deal on streaming platforms, with its standout tracks racking up some serious numbers. Among the most-streamed hits from the Uplifted album are Ashawo Remix, Adamma, and Oyi (I dey Catch Cold). These tracks, along with other timeless fan favourites like Time To Party, Nwa Baby (Ashawo Remix), and Game Changer (Dike) have all contributed significantly to Flavour’s overall streaming success, proving their lasting appeal. Reflecting on the album’s anniversary during an exclusive chat with Spotify, Flavour revealed that for him, “Adamma” truly captured the essence of Flavour from the Uplifted album era.”
From the heart of Nigeria to global playlists: Flavour’s universal pull
Flavour’s music really does have a universal pull. His songs have popped up in over 2 million user-made playlists, which shows just how much people are connecting with and sharing his tunes. And get this: in the last three years, from 2022 to 2024, Flavour’s music has seen a growth in streams, a total stream increase of 134% globally, and a 573% increase across Sub-Saharan Africa.
While 51% of his total audience is in Nigeria, his influence stretches far and wide with the USA, UK, Canada, South Africa, and France all among his top listening countries. That’s a truly global footprint, reaching across Africa, Europe, and America.
Leading Flavour’s listenership in Nigeria is a strong showing from Lagos, accounting for 38% of his Nigerian audience. The Federal Capital Territory (FCT) and Rivers State also follow closely, making up 22% and 16% respectively, together claiming 76% of his Nigerian audience. He also enjoys love in the east as two Eastern Nigerian cities, Enugu and Onitsha, break into his global top 10. Big international cities like Greater London, Johannesburg, and New York City feature prominently too. This wide geographical spread shows how his music crosses all sorts of borders.
Who’s listening? A look at Flavour’s fanbase
Flavour’s audience is diverse with Gen Zs (18-24 year olds) as his biggest fans globally and across Sub-Saharan Africa. This strong youth appeal is vital for his long-term success. While his music celebrates women, men form the majority of his listeners globally (57%) and in Sub-Saharan Africa (63%).
The lasting success of Uplifted highlights how digital streaming has completely changed the music industry. Platforms like Spotify have given artists like Flavour ways to connect with fans everywhere. These days, streaming data gives us a clear, numbers-based look at an artist’s reach, showing that Flavour’s cultural stories, delivered in fluent Igbo, truly resonate far beyond Nigeria’s borders.
Flavour’s strong link to his Igbo roots, seen in his music, has driven his global success, acting as a cultural bridge for Nigerian traditions. The ongoing popularity of Uplifted and his other songs on streaming platforms proves that genuine cultural expression, mixed with great artistry, ensures lasting success today. As Uplifted hits 15 years, it showcases the power of culture worldwide.
By Lukman Otunuga, Senior Market Analyst, FXTM
This will be a week defined by high-impact events and corporate earnings from the largest companies in the world.
Nigeria’s central bank is expected to hold interest rates on Tuesday.
This decision is likely based on still stubbornly high inflation despite price pressures easing in recent months. Inflation slowed to 22.2% year-on-year in June, its third consecutive decline. A CBN rate cut could be on the cards in H2, but this will be on the back of persistently falling price pressures.
Looking at the NGX All Share Index, it has gained almost 10% month-to-date – pushing 2025 gains to nearly 30%. This means the NGX is currently outperforming the S&P500 and Nasdaq100 who have gained roughly 7% and 11% this year respectively. The Naira spot has held its ground against the USD this year after depreciating almost 70% in 2024.
Outside of Nigeria, earnings season is in full swing with US banks reporting strong results last week. Now the spotlight shines on big tech with Alphabet and Tesla reporting on Wednesday.
Alphabet shares gained 14% in Q2 amid strong AI product demand and growth in the cloud business. However, bulls may need a fresh catalyst to push Alphabet’s year-to-date gains out of the red. Tesla is down almost 20% year-to-date and could extend losses if its latest quarterly results are below market expectations
On the data front, key releases from Europe, the United Kingdom, Japan, and the United States may influence global sentiment.
But the main event for FX markets could be the European Central Bank decision on Thursday. No changes are expected to interest rates, but any clues offered on future moves could spark fresh volatility. Traders are currently pricing in a less than 50% probability that the ECB cuts rates by September
Speaking of FX, the dollar has weakened across the board with the DXY tumbling toward 97.70. This weakness could be based on mounting pressure from Trump to cut US rates and caution ahead of the tariff deadline on August 1st.
Note: Nigeria faces a 14% reciprocal tariff on its goods imported into the U.S, effective from August 1st.
MultiChoice Nigeria, today announced the highly anticipated return of Africa’s biggest reality television show, Big Brother Naija, for its landmark 10th season. Set to premiere over two nights on Saturday, July 26 and Sunday, July 27, 2025, the new season promises 10 weeks of captivating drama, strategic gameplay, and unparalleled entertainment, culminating in the grand finale on Sunday, October 5, 2025.
The audition process for this milestone season was meticulously designed to unearth the most engaging and dynamic personalities from across Nigeria. Audition registrations were held from May 3rd to May 7th, 2025, and saw an overwhelming response, followed by rigorous in-person auditions conducted in Lagos, Abuja, and Enugu from May 16th to May 18th, 2025.
Speaking on the upcoming season, Busola Tejumola, Executive Head, General Entertainment, MultiChoice Group, expressed her excitement: “Today we are not just announcing another season, we are celebrating a legacy.”
While the official theme for Season 10 will be unveiled on the premiere night, viewers can anticipate a fresh wave of excitement. The beloved Ebuka Obi-Uchendu is returning as host, guiding viewers through every twist and turn of the season. This 10th season also has the highest prize at stake – valued at a whopping N150million.
Fans can catch the premier live on July 26 and 27 exclusively on Africa Magic Showcase, Family and Showmax at 7 PM WAT. The Sunday live eviction shows will also air exclusively on these channels. The 24/7 live stream will be available on DStv Channel 198, GOtv Channel 49, and on Showmax.
“BBNaija has become more than just a television show; it is a living, breathing cultural force. It has given voice to a new generation of talent, creatives, entertainers, and the influencer community, and it has refined what homegrown entertainment can achieve when it is done at scale with intention and ambition,” added Tejumola.
With a two-night opening live show for Big Brother Naija Season 10, the season is poised to build upon the legacy of its predecessors, with fans expecting a more dynamic and entertaining experience. Still speaking on what the season holds Dr. Tejumola said “Today we are not just announcing another season, we are celebrating a legacy. From the very first time we introduced Big Brother Naija in 2017, we had an inkling that we had something special. What we couldn’t fully imagine then is how deeply the show would resonate not only in Nigeria but across Africa and in the global diaspora, where our stories continue to connect people to home.”
This milestone season for the iconic show is not without the usual lineup of sponsors. The gold sponsor for the 10th season of the show is Guinness Nigeria. Other sponsors include Smirnoff, Gordons, HFM, Pepsi, Aquafina, Supakomando, Tolaram Group, Bet King, Golden Penny Foods, Haier Thermocool, Checkers custard, and Innoson Motors, among others.
Viewers can catch all the live action and special broadcasts on DStv Channel 198, GOtv Channel 49, and Showmax. The live Sunday eviction shows will air exclusively on Africa Magic Showcase (DStv Channel 151, GOtv Channel 8), Africa Magic Family (DStv Channel 154, GOtv Channel 7) and on Showmax.
DStv and GOtv subscribers can also watch the show on the go using the DStv and GOtv Stream apps available on the Google Play Store and IOS App Store.
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