MTN Group’s annual profit fell by 69% due to the devaluation of the Nigerian naira and operational issues in Sudan. Headline earnings per share dropped significantly, while the company reported increased costs and a substantial pretax loss in Nigeria. Despite these challenges, MTN’s service revenue decreased modestly, and it declared a slight increase in final dividends.
MTN Group experienced a significant decline in its financial performance, with a reported 69% decrease in annual earnings due to the devaluation of the Nigerian naira and ongoing operational issues in Sudan. For the year concluding on December 31, headline earnings per share (HEPS) plummeted to 98 cents, down from 315 cents in the previous year.
The naira’s depreciation, a result of chronic dollar shortages and government measures to stabilize the currency, exacerbated other financial pressures including high inflation and interest rates. Consequently, MTN Nigeria witnessed a pretax loss escalation exceeding 200%, reaching ₦550.3 billion ($355.76 million).
The armed conflict in Sudan further affected MTN’s operations, impacting both financial and operational outcomes. Group CEO Ralph Mupita elaborated on these challenges in the official statement. Despite these issues, MTN Group retained 291 million customers across 16 African markets and reported a 15% dip in group service revenue, totaling R177.8 billion ($9.78 billion), although service revenue rose by 14% in constant currency terms.
The company also announced a final dividend of 345 cents per share, a slight increase from the previous 330 cents, reflecting its commitment to shareholder returns despite the challenging environment.
In summary, MTN Group has faced substantial financial setbacks in its fiscal year, primarily due to the Nigerian currency devaluation and the turmoil in Sudan. These factors have severely impacted their earnings and operational profits. Nevertheless, the company has managed to sustain a sizable customer base and maintain a stable dividend payout as it navigates these hurdles.
Original Source: www.zawya.com
