MTN Group’s annual profit dropped by 69%, primarily due to naira devaluation and challenges in Sudan. Headline earnings per share fell to 98 cents, and Nigeria’s pretax loss surged over 200%. Despite a decline in total service revenue, a final dividend of 345 cents per share was declared.
MTN Group, Africa’s largest telecommunications operator, reported a 69% decline in its annual earnings, significantly impacted by the devaluation of the Nigerian naira and ongoing challenges in Sudan. The South Africa-based company highlighted that its headline earnings per share (HEPS) fell to 98 cents for the year ending December 31, down from 315 cents in 2022.
The devaluation of the naira was precipitated by chronic dollar shortages in Nigeria, compelling the government to take measures to stabilize the currency and attract foreign investment. High inflation and rising interest rates compounded the situation, leading to an increase of over 200% in MTN Nigeria’s pretax loss, which reached ₦550.3 billion (approximately $355.76 million).
Additionally, the armed conflict in Sudan adversely affected MTN’s operational and financial performance, as stated by Group CEO Ralph Mupita. Despite these challenges, MTN Group, which serves 291 million customers across 16 African markets, reported a 15% decrease in group service revenue, totaling R177.8 billion ($9.78 billion), although constant currency conditions showed a 14% revenue increase.
The telecommunications company declared a final dividend of 345 cents per share, slightly higher than the 330 cents declared previously, indicating a careful approach to shareholder returns amid challenging market conditions.
In summary, MTN Group has faced significant financial challenges over the past year, primarily due to the devaluation of the Nigerian naira and operational issues in Sudan. The company reported a notable decline in headline earnings per share and experienced substantial losses in its Nigerian operations. Despite these adversities, there was a marginal increase in dividend distribution, highlighting a commitment to shareholders amidst difficult circumstances.
Original Source: www.zawya.com
