MTN Group’s headline earnings per share dropped by 68% to 98 cents due to naira devaluation and conflict in Sudan. The group reported a 15.4% decline in service revenue but a 13.8% growth in constant currency. Key metrics include a rise in fintech revenue and an increase in total subscribers. MTN plans to maintain its investment strategies and boost dividend payouts.
MTN Group has experienced a significant 68% decline in headline earnings per share, now at 98 cents, primarily due to the recent naira devaluation in Nigeria and ongoing conflicts in Sudan. Listed on the JSE, MTN released its annual financial results for the year ending December 31, 2024, showing a reported service revenue drop of 15.4%, equating to R177.8 billion; however, in constant currency, revenue rose by 13.8%.
Key highlights from the report include: Data revenue fell by 12.3% reported but grew by 21.9% in constant currency; Fintech revenue increased by 11% reported and 28.5% in constant currency; Earnings before interest, tax, depreciation, and amortization (EBITDA) decreased by 33.5% but rose by 10.2% in constant currency, reaching R70.1 billion. The EBITDA margin dropped by 8.9 percentage points to 32% reported and slightly to 38.2% in constant currency.
The total subscriber base grew by 2.2% to 290.9 million, with active data subscribers increasing by 7.7% to 157.8 million. Additionally, Mobile Money’s monthly active users rose by 0.9% to 63.1 million. MTN Group CEO Ralph Mupita stated, “We are pleased to report a strong underlying performance and strategic execution for FY2024, despite challenges in the operating environment.”
The company noted improvements in key macroeconomic indicators like inflation and forex rates in certain markets during the latter half of the year. MTN’s balance sheet remains stable, with a favorable net-debt-to-EBITDA ratio of 0.7x compared to 0.4x last year. The holding company leverage stands at 1.4x, consistent with target thresholds, indicating an improvement in the second half.
The board has declared a final dividend of R3.45 per share, anticipating an increase to at least R3.70 for the 2025 fiscal year. Additionally, the company plans to maintain its medium-term guidance with anticipated network investment ranging between R30 billion and R35 billion for the 2025 financial year, dependent on current currency forecasts.
MTN Group’s financial results for 2024 exhibit substantial challenges, including a major drop in earnings due to currency devaluation and external conflicts. Despite this, the company reports growth in subscriber numbers and active data users and maintains a stable financial position with projections for future investments and increased dividends. CEO Ralph Mupita emphasizes the company’s resilience in navigating a complex operating environment.
Original Source: techcentral.co.za
