MTN GMTN Group Reports 68% Profit Drop Amid Naira Devaluation, Sudan Conflictroup Reports 68% Decline in Earnings Amid Currency Devaluation and Conflict

MTN Group has reported a sharp 68% decline in headline earnings per share (HEPS) to $0.05, citing the impact of Nigeria’s naira devaluation and ongoing conflict in Sudan as key factors.

The Johannesburg-listed telecom giant released its financial results for the year ending December 31, 2024, on Monday, revealing a 15.4% decline in reported group service revenue to $9.4 billion. However, on a constant currency basis, revenue increased by 13.8%.

Key Financial Highlights:

• Data revenue: Declined by 12.3% on a reported basis but grew by 21.9% in constant currency.
• Fintech revenue: Increased by 11% on a reported basis and surged by 28.5% in constant currency.
• Earnings before interest, tax, depreciation, and amortisation (EBITDA): Dropped 33.5% on a reported basis but rose by 10.2% in constant currency, reaching $3.7 billion.
• EBITDA margin: Declined by 8.9 percentage points on a reported basis to 32%, while in constant currency, it fell 0.8 points to 38.2%.
• Subscriber growth: Total subscribers increased by 2.2% to 290.9 million, with active data subscribers rising by 7.7% to 157.8 million.
• Mobile Money users: Monthly active users increased by 0.9% to 63.1 million.

Despite the challenging macroeconomic environment, MTN Group CEO Ralph Mupita expressed optimism about the company’s performance.

“We are pleased to report a strong underlying performance and strategic execution for FY2024, despite challenges in the operating environment,” Mupita stated. “We are encouraged by the relative stability of some key macroeconomic indicators in the second half, such as inflation and forex rates in certain markets.”

MTN reported a net debt-to-EBITDA ratio of 0.7x at year-end, up from 0.4x a year earlier, while holding company leverage stood at 1.4x, in line with the December 2023 ratio and within the company’s target range.

The board declared a final dividend of $0.18 per share and expects to increase this to at least $0.19 in the 2025 financial year.

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