MTN’s annual headline earnings per share fell to 98 cents due to Nigeria’s naira devaluation, resulting in a pretax loss of ₦550.3 billion. The group’s total service revenue decreased by 15%, with a conflicting increase of 14% in constant currency terms. Despite these challenges, a final dividend of 345 cents was declared.
MTN Group, based in South Africa, reported a substantial decline in its headline earnings per share (HEPS), which fell to 98 cents for the year ending December 31, a significant drop from 315 cents in the previous year. This decline is primarily attributed to the devaluation of Nigeria’s naira, exacerbated by ongoing dollar shortages, high inflation, and elevated interest rates, leading to an increase in operational costs.
In Nigeria, MTN’s pretax loss spiked over 200% to ₦550.3 billion (equivalent to $355.76 million). Furthermore, the company’s performance was adversely affected by ongoing conflicts in Sudan, according to Group CEO Ralph Mupita. Despite these challenges, MTN Group serves 291 million customers across 16 markets in Africa.
The group also reported a 15% drop in overall service revenue, totaling R177.8 billion ($9.78 billion), although in constant currency, revenues increased by 14%. In light of these financial results, MTN declared a final dividend of 345 cents per share, reflecting a modest rise from 330 cents.
In conclusion, MTN Group’s annual profit has been significantly impacted by the devaluation of the naira in Nigeria, compounded by high inflation and interest rates. The company faces growing losses in Nigeria while also contending with operational challenges in Sudan. Despite a decline in overall service revenue, MTN has announced an increase in its dividend, signifying an ongoing commitment to shareholder returns in a challenging environment.
Original Source: www.bizcommunity.com
