MTN Group has posted a staggering R11.2 billion loss after tax for the 2024 financial year, largely attributed to the sharp devaluation of the Naira in Nigeria, its largest market. The financial hit comes despite a strong operational performance in other regions and a strategic focus on expanding its data services and 5G infrastructure.
Impact of Naira Devaluation on MTN’s Finances
The Nigerian economy’s instability has played a crucial role in MTN’s financial downturn. CEO Ralph Mupita acknowledged the challenges but highlighted a positive outlook.
“We are pleased to report a strong underlying performance and strategic execution for FY 2024, despite challenges in the operating environment,” said Mupita.
Despite MTN’s efforts to manage risks, the currency’s depreciation drastically reduced the group’s reported revenue. The company noted that forex volatility, inflationary pressure, and geopolitical instability in Sudan further strained operations.
Financial Performance Breakdown
- Total service revenue: Decreased by 5.4% to R177.8 billion
- Data revenue: Dropped 12.3% on a reported basis
- EBITDA: Increased 10.2% on a constant currency basis but fell 33.5% on a reported basis
- Loss after tax: R11.2 billion, compared to a R4 billion profit in 2023
- Basic earnings per share: Declined by more than 100%, reaching a loss of 531 cents per share
- Headline earnings per share: Dropped 68.9% to 98 cents per share
- Dividend per share: Increased to 345 cents, up from 330 cents in 2023
MTN South Africa: A More Stable Performance
MTN South Africa saw service revenue growth of 3.1%, driven by improved network availability and commercial initiatives. The company’s mobile subscriber base grew 6.4% to 39.8 million users, with prepaid customers increasing by 5.5%.
Key South African Market Highlights
- Data revenue: Grew 2.9%, contributing 47.8% to total service revenue
- Prepaid data consumption: Increased 9.5% to 3.2GB per month per user
- Fintech revenue: Surged 46.8%
- Enterprise service revenue: Increased 10.8%
Strategic Outlook and Future Growth
Despite its financial struggles, MTN remains optimistic about consumer spending recovery in South Africa, supported by falling inflation and interest rate cuts.
The group plans to focus on 5G expansion, Fiber-to-the-Home (FTTH), and Fixed Wireless Access (FWA) to drive long-term revenue growth. Additionally, operational efficiency and cost management will be central to restoring profitability.
With economic conditions stabilizing in South Africa and ongoing digital transformation efforts, MTN is positioning itself for a recovery in 2025. However, challenges in Nigeria and other volatile markets remain key risks to monitor.
MTN’s R11 billion loss underscores the severe impact of currency devaluations on multinational corporations operating in volatile economies. While the company continues to show resilience, Nigeria’s economic future and regional stability will play a major role in determining MTN’s financial health in the coming years.
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