The MTN Group has reported a decline in revenue, attributed to economic challenges in Nigeria and the conflict in Sudan. Service revenue fell by 15.4%, although there was growth in constant currency. Subscriber numbers increased, reflecting operational resilience. Strategic portfolio optimization and infrastructure investments were emphasized for future stability and growth, with a steady dividend announcement for FY 2024.
The MTN Group reported a decline in revenue, primarily due to challenges in Nigeria and Sudan, according to their annual financial results for the year ending December 31. Key factors included foreign currency devaluation, especially affecting the Nigerian naira, and the ongoing conflict in Sudan. Total service revenue decreased by 15.4% to R177.8 billion, with a constant currency increase of 13.8% (14.4% excluding MTN Sudan).
Despite a reported decrease in data revenue by 12.3%, it showcased a substantial increase of 21.9% in constant currency. The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) saw a significant decline of 33.5%, while its EBITDA margin fell by 8.9 percentage points. Additionally, basic earnings per share dropped to a loss of -531 cents, with reported headline EPS decreasing by 68.9% to 98 cents.
During the first half of 2024, MTN experienced a revenue decline of 20.8%, amounting to R85.3 billion, compared to R107.7 billion in the previous year. However, total subscribers rose by 2.2% to 290.9 million, and active data subscribers increased by 7.7% to 157.8 million. Their Mobile Money (MoMo) service also reported a slight increase in monthly active users and substantial data traffic growth of 32.6%.
MTN Group President and CEO Ralph Mupita remarked on the company’s strong underlying performance despite facing operating environment challenges. He noted stabilization in key macroeconomic indicators in the latter half of the year, which contributed positively to the results. Mupita emphasized operational performance in several critical markets and the approval of tariff amendments in Nigeria, which supported company momentum.
The company invested R29.9 billion in capital expenditures to improve network quality and capacity. This investment, coupled with execution of commercial strategies, allowed MTN to meet structural demands for data and fintech services. By the end of FY 2024, the firm recorded a subscriber base of 291 million.
MTN’s strategic initiatives included finalizing the sale of MTN Afghanistan and planning exits from operations in Guinea-Bissau and Guinea-Conakry, refining their portfolio focus. The company successfully renegotiated tower lease contracts in Nigeria, providing more sustainable operations and generating R1.3 billion in cost savings. Additionally, it achieved higher localization rates in Ghana and compliance with Uganda’s public float requirements.
The MTN Group announced a dividend payment of 345 cents per share for FY 2024, with expectations to raise the ordinary dividend to 370 cents for FY 2025. The future outlook appears cautiously optimistic, as MTN navigates various economic and operational challenges.
In summary, the MTN Group faced significant revenue challenges in 2024 primarily due to the economic situations in Nigeria and Sudan. Despite a decrease in overall revenue and profits, the company experienced growth in subscriber numbers and data services. Strategic moves towards optimizing their portfolio and investments in infrastructure point towards a focus on stability and future growth. The anticipated increase in dividends reflects confidence in sustaining financial health despite ongoing adversities.
Original Source: www.itweb.co.za
