MTN Group, Africa’s biggest telecommunications operator, swung to a half-year loss on Monday, weighed down by devaluation of the Nigerian naira and operational challenges in Sudan.
The operator, with 288 million customers across 18 markets in Africa, reported a headline loss of R2.56/share in the six-month period ended 30 June, compared with restated headline earnings from a year earlier at R2.60/share.
“Although the underlying commercial momentum and strategy execution were solid in the period, macro headwinds impacted operating results,” group CEO Ralph Mupita said in a statement.
“The further devaluation in the naira against the US dollar, the translation impact on reporting currency (rands) of the naira and the ongoing conflict in Sudan had the most significant impact on reported results.”
MTN’s reported group service revenue slumped 20.8% to R85.3-billion from R107.7-billion. In constant currency, group service revenue, which excludes device and Sim card revenue, rose by 12.1%.
MTN’s service revenue from South Africa surpassed that of MTN Nigeria, its biggest market by revenue, growing marginally by 3.3% to R21.1-billion, while Nigeria tumbled by 52.9% to R20.5-billion. In constant currency, Nigeria grew by 32.4%.
MTN said the board anticipates paying a minimum ordinary final dividend of R3.30/share for 2024 financial year. — (c) 2024 Reuters