MTN Group, Africa’s largest mobile operator, has cautioned investors about a substantial decline in its 2024 financial performance, citing severe foreign exchange (forex) losses and economic instability in key markets. The company expects headline earnings per share (HEPS) to drop between 59% and 79%, falling to 66–129 cents per share, compared to 315 cents in the previous year.
A major contributor to this downturn is MTN Nigeria, the company’s biggest market, which reported a ₦514.9 billion after-tax loss in Q3 2024. This sharp decline was largely driven by currency devaluation and broader economic turbulence in Nigeria. High inflation rates, currency fluctuations, and geopolitical tensions—especially in countries like Sudan—have further strained MTN’s overall financial performance.
Despite these challenges, MTN Ghana has demonstrated resilience, reporting a 31.2% increase in service revenue in the first half of 2024, reaching GHS 8.1 billion ($520 million). The growth was fueled by a rise in mobile subscribers and increased adoption of mobile money services, which remain a crucial revenue stream for the company.
In Q1 2024, MTN Group’s service revenue declined by 18.8% compared to the same period in 2023. However, when adjusted for constant currency terms, the company recorded an 11.1% increase, reflecting underlying business growth despite economic headwinds.
To mitigate financial losses, MTN is exploring strategic measures, including potential tariff adjustments. In March 2024, the company considered price hikes to offset approximately $101 million in forex-related losses, aiming to stabilize its financial performance amid persistent currency devaluations.
As MTN prepares to release its full-year financial results for 2024, stakeholders can expect further details on the company’s strategic response to these challenges.
Read the full news here: Techpoint Africa