HomeBusinessMTN Group Faces Profit Slump Amid Naira Devaluation and Sudan Conflict

MTN Group Faces Profit Slump Amid Naira Devaluation and Sudan Conflict

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KEY POINTS


  • MTN Group’s headline earnings per share dropped by 69% due to the naira’s devaluation and ongoing conflict in Sudan, masking an underlying 13.8% growth in constant currency terms.
  • MTN’s South African operations grew service revenue by 3.1%, contributing 24.3% of total revenue, while Nigeria’s revenue fell by nearly 45%.
  • MTN has implemented cost-saving measures and tariff increases in Nigeria, restored some operations in Sudan, and remains optimistic about growth prospects despite macroeconomic challenges.

The devaluation of the Nigerian naira and the ongoing conflict in Sudan have significantly impacted MTN Group’s financial performance over the past year, with the pan-African telecom giant reporting a sharp decline in profits.

Despite these challenges, MTN’s South African operations have shown resilience, contributing the largest share of service revenue.

MTN Group’s headline earnings per share (HEPS), a key profit metric in South Africa, plummeted by nearly 69% year-over-year (YoY) for the 12 months ending December 31, 2024.

However, in constant currency terms, HEPS would have increased by 13.8%, highlighting the severe impact of currency fluctuations on the group’s financials.

“Our operating context was characterized by sharp devaluation of the naira, along with elevated inflation in some markets. There remained volatility in the geopolitical landscape, which had knock-on effects on our business,” said MTN Group President and CEO Ralph Mupita.

Nigeria’s economic woes and sudan’s conflict weigh heavily on MTN’s performance

Nigeria, one of MTN’s largest markets, has been a persistent challenge for the telecom operator.

Nairametrics reports that the naira’s devaluation has eroded profits, while the conflict in Sudan has disrupted operations and led to a hyper-inflationary environment. Mupita noted that the naira’s decline “masked the underlying strong performance in the business.”

In Nigeria, MTN has implemented several measures to mitigate losses, including renegotiating tower lease contracts, which saved R1.3 billion ($71.6 million) in operational expenditure.

Additionally, the company has raised mobile prices following a 50% tariff increase approved by Nigerian regulators in January 2025.

“I’m actually very bullish and confident that we’ll see strong recovery in Nigeria. We’ll see build out of our subscriber base and getting service revenue, earnings, and cash flow back to the levels that we know that this business can generate,” Mupita added.

 

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