MTN Group reported a 68% decline in headline earnings per share, primarily due to currency devaluation in Nigeria and conflict in Sudan. Despite a 15.4% drop in service revenue to R177.8 billion, constant currency figures showed growth in key areas. The company maintains a stable balance sheet, plans significant network investments, and anticipates dividend increases in the coming financial year.
MTN Group has experienced a significant decline in its headline earnings per share, reporting a 68% drop to 98 cents. This decrease is primarily attributed to the further devaluation of the naira in Nigeria and ongoing conflicts in Sudan. In their annual financial report for the period ending December 31, 2024, the group noted a 15.4% fall in service revenue to R177.8 billion, although revenue increased by 13.8% when adjusted for constant currency.
In addition to the overall revenue decline, data revenue decreased by 12.3% on a reported basis, while it rose by 21.9% in constant currency terms. Conversely, fintech revenue saw an 11% increase in reported terms, surging by 28.5% in constant currency. Earnings before interest, tax, depreciation, and amortization (EBITDA) fell by 33.5% to R70.1 billion, but increased by 10.2% on a constant currency basis, with a decline in the EBITDA margin by 8.9 percentage points on a reported basis.
The company reported a modest growth in total subscribers, which rose by 2.2% to 290.9 million, and active data subscribers increased by 7.7% to 157.8 million. Mobile Money’s monthly active users also grew slightly 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.”
Mupita added that there has been relative stability in key macroeconomic indicators such as inflation and foreign exchange rates in certain markets. The company reported a stable balance sheet, with a net debt-to-EBITDA ratio of 0.7 times at year-end, compared to 0.4 times the previous year. The board declared a final dividend of R3.45 per share and anticipates increasing this to a minimum of R3.70 for the 2025 financial year. MTN plans to allocate between R30 billion and R35 billion on network improvements in the upcoming fiscal year, based on current currency assumptions.
MTN Group has faced challenges primarily due to the naira’s devaluation and regional conflicts, resulting in a notable decline in earnings and service revenues. Despite these adversities, the company’s results reflect growth in certain areas such as fintech and active subscribers. The financial stability indicated by the balance sheet ratios and the planned reinvestment in network expansion casts a positive outlook for the company’s medium-term performance. MTN continues to engage strategically in its operations while aiming to provide shareholder value through dividends and sound financial management.
Original Source: techcentral.co.za
