MTN Group reported a 68% drop in headline earnings per share to 98c due to the naira’s devaluation and Sudan’s conflict. Despite a 15.4% fall in service revenue to R177.8 billion, key metrics like fintech revenue and subscriber numbers showed improvement. The company declared a final dividend of R3.45/share and plans significant network investments moving forward.
MTN Group has reported a significant decline in headline earnings per share, dropping 68% to 98 cents due to the devaluation of the naira in Nigeria and ongoing conflict in Sudan. The JSE-listed company released its annual financial results for the year ending December 31, 2024, indicating that group service revenue fell by 15.4% to R177.8 billion, with a 13.8% increase in constant currency terms.
Key highlights from the annual results show that data revenue decreased by 12.3% on a reported basis, yet rose by 21.9% in constant currency. Fintech revenue showed an 11% increase in reported terms, jumping 28.5% in constant currency. Earnings before interest, tax, depreciation, and amortization (Ebitda) before once-off items decreased by 33.5% in reported terms but rose by 10.2% to R70.1 billion in constant currency, while the Ebitda margin declined by 8.9 percentage points on a reported basis to 32%.
MTN also reported that it increased its subscriber base by 2.2% to 290.9 million, with active data subscribers rising by 7.7% to 157.8 million. Additionally, Mobile Money monthly active users grew 0.9% to 63.1 million. “We are pleased to report a strong underlying performance and strategic execution for FY2024, despite challenges in the operating environment,” stated MTN Group CEO Ralph Mupita.
The company’s balance sheet remains stable, citing a net-debt-to-Ebitda ratio of 0.7x at year-end, an increase from 0.4x a year earlier. Holding company leverage is at 1.4x, aligning with December 2023 ratios and demonstrating an improvement. The board declared a final dividend of R3.45 per share, with expectations to raise this to at least R3.70 in the 2025 financial year. MTN plans to maintain its medium-term guidance and will allocate between R30 billion and R35 billion for its networks in the 2025 financial year, based on current currency assumptions.
In conclusion, MTN Group faced significant challenges in the financial year 2024, resulting in a marked decline in headline earnings per share and service revenue. Nonetheless, the company demonstrated recovery in constant currency metrics, positive growth in fintech and active subscribers, and maintained a stable financial position. MTN intends to uphold its network investment plans and increase dividends in the coming financial year, reflecting confidence in its operational resilience.
Original Source: techcentral.co.za
