MTN Group reported a 68.9% decline in full-year earnings on Monday, citing currency devaluation and operational challenges in Sudan.
- MTN Group reported a 68.9% decline in full-year earnings.
- Challenges in Sudan and currency devaluation in Nigeria impacted performance.
- Despite challenges, MTN saw growth in its customer base with total subscribers reaching 290.9 million.
MTN Group reported a 68.9% decline in full-year earnings on Monday, citing currency devaluation and operational challenges in Sudan. The company posted a loss of 9.59 billion rand ($526 million) for the year.
The South Africa-based telecom giant saw its headline earnings per share, a key profit metric, drop to 98 cents for the year ending December 31, down from 315 cents in 2023.
Africa’s biggest telecom company by revenue, operating across 18 markets, was hit by currency devaluations, especially in Nigeria, which accounts for a third of its sales. the ongoing conflict in sudan also significantly impacted its performance.
However, the firm announced it would pay a dividend of 3.45 rand per share, showing confidence in its long-term outlook.
DON’T MISS THIS: Top 10 largest economies in Africa and their inflation rates
“We are pleased to report a strong underlying performance and strategic execution for FY2024, despite challenges in the operating environment,” said MTN Group CEO Ralph Mupita in a statement with the results on Monday.
“We are encouraged by the relative stability of important key macroeconomic indicators in the second half, such as inflation and forex rates in certain of our key markets,” he said.
MTN’s revenue performance across business segments
Data revenue saw a decline of 12.3% on a reported basis; however, in constant currency terms, it experienced a 21.9% increase.
Similarly, fintech revenue grew by 11% on a reported basis but recorded a more substantial rise of 28.5% in constant currency.
DON’T MISS THIS: Top 10 African countries with the highest-earning migrant population in the US
Earnings before interest, tax, depreciation, and amortization (EBITDA), before one-off items, fell by 33.5% on a reported basis, but in constant currency, it increased by 10.2% to reach R70.1 billion.
The EBITDA margin also declined, dropping by 8.9 percentage points to 32% on a reported basis, while in constant currency, it was down by 0.8 percentage points to 38.2%.
Despite these challenges, MTN experienced growth in its customer base. Total subscribers increased by 2.2% to 290.9 million, while active data subscribers saw a 7.7% rise, reaching 157.8 million.
Mobile Money’s monthly active users grew modestly by 0.9%, reaching a total of 63.1 million.
