MTN Group, a leading South African telecommunications company, has recorded a steep 69 per cent decline in its full-year earnings, driven by Nigeria’s naira devaluation and operational setbacks in war-torn Sudan.
In its financial results released on Monday, the company reported that headline earnings per share—a critical indicator of profitability—plunged to 98 cents for the year ending December 31, compared to 315 cents the previous year.
The downturn was primarily fueled by Nigeria’s persistent foreign exchange crisis, characterized by severe dollar shortages and repeated currency devaluations. The Central Bank of Nigeria’s efforts to stabilize the naira and boost investor confidence through devaluation measures have taken a toll on businesses, with MTN bearing significant financial strain. Soaring inflation and elevated interest rates have further compounded the challenges, driving up costs and squeezing the telecom giant’s margins.
MTN Nigeria, a vital arm of the group, suffered the most, posting a pre-tax loss that skyrocketed by over 200 per cent to N550.3 billion ($355.76 million). To counter these losses, the subsidiary has taken decisive steps, including renegotiating tower lease agreements and securing regulatory approval for a tariff increase in January.
Despite the setbacks, MTN Group CEO Ralph Mupita expressed optimism about Nigeria’s recovery potential during a media briefing. “The difficulties we’ve faced over the past 18 months are easing,” he said. “Our business is showing robust growth, and I’m very confident we’ll witness a strong rebound in Nigeria.”
Elsewhere, MTN’s operations in Sudan were hit hard by ongoing armed conflict, resulting in network impairments worth 11.7 billion rands ($643.40 million). Services in the capital, Khartoum, have been largely offline since April 2023, though the company reported progress in restoring some sites in previously affected areas.
Across the group, service revenue reached 177.8 billion rand, marking a 15 per cent drop year-on-year. However, when adjusted for currency fluctuations, MTN saw a 14 per cent increase in service revenue, driven by strong performance in data, fintech, digital, and enterprise services. Notably, its home market of South Africa delivered a 3.1 per cent rise in service revenue, offering a silver lining amid broader challenges.
To bolster investor confidence, MTN announced a final dividend of 345 cents per share and forecasted a minimum payout of 370 cents for the 2025 financial year. The company emphasized its commitment to navigating economic and geopolitical hurdles through cost-cutting initiatives, regulatory collaboration, and a focus on digital transformation to fuel future growth.
Looking ahead, MTN remains hopeful about Nigeria’s long-term prospects and is prioritizing strategic efforts to stabilize operations and secure sustainable profitability across its markets. While headwinds persist, the telecom giant is betting on resilience and innovation to stage a recovery.
