Johannesburg - MTN Group, Africa's largest telecom operator, has reported a significant downturn in its full-year earnings, primarily attributed to the devaluation of the Nigerian naira and operational difficulties in Sudan. The company's headline earnings per share (HEPS), a key profit indicator in South Africa, plummeted by 69%, falling from 315 cents in 2023 to 98 cents in the year ending December 31, 2024.

The Nigerian economy has been grappling with persistent dollar shortages, compelling authorities to devalue the naira in an attempt to stabilize the currency and attract foreign investment. This devaluation, coupled with soaring inflation and high-interest rates, has substantially increased operational costs for MTN Nigeria, leading to a pre-tax loss exceeding 200%, amounting to 550.3 billion naira ($355.76 million).

Despite these challenges, MTN Group CEO Ralph Mupita remains optimistic about the future. He noted that measures are being taken to restore profitability in Nigeria, including renegotiating tower leases and implementing tariff hikes, which were approved in January 2025. Mupita stated, "That pain which we've had for 18 months, is abating somewhat... the business is growing very strongly. So I'm actually very bullish and confident that we'll see strong recovery in Nigeria."

In Sudan, the ongoing armed conflict has severely impacted MTN's operations, resulting in impairments of 11.7 billion rand ($643.40 million). However, Mupita reported that MTN is "started to see sites coming back on air" in conflict-affected areas such as Khartoum, where the network had been down since April 2023.

Across its 16 markets in Africa, MTN Group, serving 291 million customers, experienced a 15% decrease in group service revenue, totaling 177.8 billion rand. However, in constant currency terms, service revenue increased by 14%. South Africa saw a 3.1% rise in service revenue, driven by growth in data, fintech, digital services, and enterprise revenue.

The company has declared a final dividend of 345 cents per share and anticipates paying a minimum dividend of 370 cents in the new financial year ending December 2025.

Adding to the positive outlook, MTN Nigeria's service revenue surged by 35.6% in March, following tariff adjustments implemented in February. The MTN Group expects further growth in 2025, buoyed by these adjustments.

Mupita highlighted the renegotiation of tower lease contracts in Nigeria, which allows MTN Nigeria to better manage adverse macroeconomic impacts. He affirmed MTN Group's commitment to capturing opportunities in its markets and delivering on its medium-term objectives to sustain growth and create shared value.

The company also reported strong performance in its fintech services, with revenue up by 28.5% and transaction value up by 35% in constant currency, reaching US$321 billion. Fintech advanced services revenue increased by 52%.

MTN Group is maintaining its medium-term guidance and has started 2025 on a strong footing. The dividend at 345 cents per share was increased due to positive momentum in earnings, free cash flow, and leverage. The Board anticipates paying a minimum ordinary dividend of 370 cents for the 2025 financial year.

In Ghana and Uganda, the firm increased local ownership in its operations. In South Africa, it extended the MTN Zakhele Futhi broad-based black economic empowerment transaction, underscoring its dedication to transformation and creating shared value.

Other achievements include reductions in the Group’s Scope 1 and 2 emissions and widening access to broadband internet, covering 93% of the population in its markets. Advancing broadband in rural and remote areas is critical to its work to extend digital and financial inclusion across Africa.