MTN Group reported a 69% decrease in annual earnings primarily due to the Nigerian naira devaluation and Sudan’s operational issues. Headline earnings per share fell to 98c in 2023, while Nigerian pretax losses surged over 200%. MTN’s service revenue decreased by 15%, yet a final dividend was declared at 345c per share.
MTN Group has announced a significant decline in its annual earnings, reporting a 69% decrease in full-year profits, primarily due to the devaluation of the Nigerian naira and operational difficulties in Sudan. The head office, located in South Africa, revealed that its headline earnings per share (HEPS) plummeted to 98 cents for the year ending December 31, down from 315 cents in 2023.
The Nigerian economy has faced persistent dollar shortages, prompting authorities to implement a currency devaluation strategy aimed at stabilizing the naira and attracting investment. Concurrently, elevated inflation and interest rates have escalated operational costs, leading to a staggering 200% increase in MTN Nigeria’s pretax losses, which reached ₦550.3 billion (approximately $355.76 million).
Additionally, the ongoing armed conflict in Sudan has severely affected MTN’s operational and financial performance, as stated by Group CEO Ralph Mupita. Despite the challenges, MTN Group, which serves 291 million customers across 16 African markets, reported a decrease in group service revenue of 15%, amounting to R177.8 billion (around $9.78 billion). However, when adjusted for constant currency, the revenue rose by 14%.
In light of these developments, MTN has announced a final dividend of 345 cents per share, a slight increase from the previous 330 cents, reflecting its commitment to providing returns to shareholders amidst adversity.
In summary, MTN Group’s annual profits were adversely affected by the devaluation of the Nigerian naira and operational challenges in Sudan. The company’s headline earnings per share experienced a significant decline, while the revenue from its services also dropped. However, MTN maintained a commitment to shareholders by increasing its dividend payout. This situation underscores the financial vulnerabilities within the region’s economic landscape.
Original Source: www.zawya.com
