MTN Group reported a decline in headline earnings per share to 98 cents, down from 315 cents due to Nigeria’s currency devaluation and high inflation. The company’s pretax loss in Nigeria exceeded 200%, amounting to ₦550.3 billion. Despite facing operational challenges in Sudan, MTN revealed a 15% drop in group service revenue but a slight increase in dividends.
MTN Group, based in South Africa, revealed a significant decline in its reported headline earnings per share (HEPS), which fell to 98 cents for the financial year ending December 31, down from 315 cents in 2023. This drop is attributed to Nigeria’s ongoing currency issues, where chronic dollar shortages have necessitated a devaluation of the naira to stabilize the economy and attract foreign investment.
The unfavorable economic conditions in Nigeria, including high inflation and increasing interest rates, have severely impacted MTN Nigeria’s financial performance. The company reported a pretax loss exceeding 200%, totaling ₦550.3 billion (approximately $355.76 million). Additionally, MTN faced operational challenges in Sudan, attributed to persistent armed conflicts, as articulated by Group CEO Ralph Mupita.
Despite these setbacks, MTN Group, serving 291 million customers across 16 African markets, reported a 15% decline in group service revenue, amounting to R177.8 billion ($9.78 billion). However, when adjusted for constant currency, service revenue exhibited a 14% increase. The Group also announced a final dividend of 345 cents per share, a slight increase from the previous year’s 330 cents.
In summary, MTN Group’s financial performance has been substantially affected by a range of economic challenges, particularly in Nigeria due to currency devaluation and high inflation. While the group has experienced a notable decrease in earnings and service revenue, it also managed to declare a modest increase in dividends, reflecting some resilience in its operations.
Original Source: www.bizcommunity.com
