MTN’s Nigerian Nightmare: A Century of Decline
The once-mighty MTN Group has fallen on hard times, with its Nigerian subsidiary reporting a staggering loss of ₦519.1-billion in the first half of 2024. The bloodbath is a result of the country’s crippling macroeconomic conditions, with inflation soaring to 34.2% and the naira plummeting against the dollar.
Incompetence Reigns
Karl Toriola, CEO of MTN Nigeria, has been touting a "solid underlying operating performance," but the numbers tell a different story. With Ebitda margins collapsing by 17.4 percentage points and forex losses skyrocketing by 95%, it’s clear that the company’s operations are in shambles.
False Hope
Toriola’s claim of a "solid underlying performance" is nothing more than a desperate attempt to sugarcoat the company’s dismal numbers. The reality is that MTN is hemorrhaging money, and it’s only a matter of time before it completely implodes.
More Pain Ahead
The company’s attempts to recover from this freefall will only lead to further pain. With operational expenditure ballooning due to the depreciation of the naira and higher energy costs, it’s clear that MTN is in dire need of a drastic overhaul. Anything less will only lead to continued decline and eventual collapse.
No Relief in Sight
The company’s share price has plummeted to R76.65, down 0.2% on the session. Year-to-date, MTN has lost a third of its value, and over a three-year period, it’s down 27%. There’s no relief in sight, only a never-ending cycle of decline.
Vodacom’s Victory
Meanwhile, rival Vodacom Group has seen its shares tumble by 23% over the same three-year period, but at least it has shown some signs of life. MTN, on the other hand, is sinking faster than a stone into the abyss.
The End Is Nigh
It’s time to face the music: MTN’s Nigerian nightmare is far from over, and the company’s very survival is under threat. The writing is on the wall, and it’s only a matter of time before this once-mighty empire crumbles to dust.
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