MTN’s annual profit has been significantly affected by Nigeria’s currency devaluation, causing HEPS to drop from 315 cents to 98 cents. The naira’s devaluation and high inflation have contributed to a pretax loss of ₦550.3 billion for MTN Nigeria, while operations in Sudan were impacted by conflict. Overall, MTN’s service revenue decreased by 15%, yet a dividend increase was declared.
MTN, headquartered in South Africa, reported a significant decline in headline earnings per share (HEPS), falling to 98 cents for the year ending December 31, from 315 cents in 2023. This downturn is largely attributed to Nigeria’s ongoing dollar shortages, compelling authorities to devalue the naira in an effort to stabilize the currency and foster investment. High inflation and soaring interest rates have exacerbated costs, resulting in a pretax loss for MTN Nigeria exceeding 200%, totaling ₦550.3 billion ($355.76 million).
The group’s operational and financial performance in Sudan faced challenges amid persistent armed conflict, as highlighted by Group CEO Ralph Mupita in a statement. With a customer base of 291 million spread across 16 African markets, MTN Group saw its overall service revenue decline by 15%, reaching R177.8 billion ($9.78 billion). However, when measured in constant currency, group service revenue actually increased by 14%. The company announced a final dividend of 345 cents per share, a slight increase from 330 cents the previous year.
In conclusion, MTN Group’s financial performance has suffered significantly due to external factors, particularly in Nigeria where currency devaluation and economic inflation have led to substantial losses. Despite facing operational challenges in Sudan and an overall decline in service revenue, the group managed to increase its dividend slightly, indicating a commitment to providing returns to shareholders.
Original Source: www.bizcommunity.com
