MTN Nigeria’s service revenue saw a significant 35.6% increase in March, following tariff hikes introduced in February.
A report from the company’s South African office on Monday indicated that further growth is anticipated in 2025 as a result of these tariff adjustments.
However, MTN Group as a whole reported a 69% drop in full-year earnings, largely due to the devaluation of the Nigerian naira and operational disruptions in Sudan.
The group’s headline earnings per share (HEPS) for the year ending December 31 fell sharply to 98 cents, down from 315 cents in 2023.
Despite these challenges, including inflationary pressures, currency depreciation in Nigeria, and ongoing conflict in Sudan, MTN Group’s CEO, Ralph Mupita, expressed confidence in the company’s future.
He highlighted improvements in inflation, the stabilization of the naira, and the positive effects of tariff changes in Nigeria as factors that would drive future growth.
“We have renegotiated tower lease contracts in Nigeria, enabling MTN Nigeria to better navigate the negative macroeconomic environment,” Mupita stated.
He also expressed optimism about the group’s position to leverage opportunities in its markets and continue pursuing its medium-term growth objectives.
In Nigeria, the company has faced significant economic headwinds, including a chronic shortage of dollars, which led to the devaluation of the naira.
High inflation and interest rates further exacerbated cost pressures, pushing MTN Nigeria’s pretax loss to an eye-watering 550.3 billion naira ($355.76 million).
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Meanwhile, MTN’s operations in Sudan have been severely affected by ongoing armed conflict, impacting both operational performance and financial results.
Across the wider group, MTN’s total service revenue dropped by 15%, reaching 177.8 billion rand ($9.78 billion), though in constant currency, it rose by 14%.
The group declared a final dividend of 345 cents per share, up from 330 cents the previous year.
Key financial highlights include:
– MTN Nigeria’s service revenue up by 35.6% following February tariff changes, with expectations of continued growth in 2025.
– MTN South Africa’s service revenue increased by 3.1%, with strong EBITDA margins of 37.4%.
– Fintech service revenue surged by 28.5%, with a 35% increase in transaction value, totaling $321 billion in constant currency.
– Strong performance in fintech advanced services, including bank tech, remittance, and payments, which grew by 52%.
– MTN Group’s medium-term financial guidance remains positive, with a robust start to 2025.
Additionally, the company increased local ownership in Ghana and Uganda, while in South Africa, it expanded its broad-based black economic empowerment transaction, MTN Zakhele Futhi.
This, Mupita noted, aligns with the company’s ongoing commitment to transformation and creating shared value.
MTN also reported reductions in its Scope 1 and 2 emissions and expanded broadband access, now reaching 93% of the population in its markets, particularly focusing on rural and remote areas to advance digital and financial inclusion across Africa.
Reported by Channels
