MTN’s profits have been heavily impacted by the devaluation of the Nigerian naira, leading to a sharp decrease in their headline earnings per share. The company’s pretax losses in Nigeria have soared over 200%, while operations in Sudan are also affected by conflict. Despite these challenges, MTN raised its dividend slightly.
MTN, a telecom company based in South Africa, reported a significant decline in its headline earnings per share (HEPS), dropping to 98 cents for the year ending December 31, down from 315 cents in 2023. The declines stem from Nigeria’s currency devaluation amid ongoing dollar shortages that prompted the government to stabilize the naira and attract foreign investment.
High inflation and interest rates have exacerbated costs, causing MTN Nigeria’s pretax loss to rise over 200% to ₦550.3 billion (approximately $355.76 million). Additionally, MTN’s operations in Sudan have faced challenges due to persistent armed conflict, as noted by Group CEO Ralph Mupita.
MTN Group, which serves 291 million customers across 16 African markets, saw its group service revenue decline by 15% to R177.8 billion (around $9.78 billion), although it rose 14% in constant currency terms. Despite the losses, the company declared a final dividend increase to 345 cents per share, up from 330 cents previously.
MTN Group has faced significant financial challenges due to Nigeria’s currency devaluation and the economic turmoil in Sudan. The company’s earnings have dropped markedly, resulting in increased pretax losses and decreased revenue. However, they maintain a robust customer base and still managed to raise their dividend, indicating some resilience amid financial difficulties.
Original Source: www.bizcommunity.com
