MTN Group has reported a significant loss after tax of US$618 million for the past year, as revealed in its 2024 annual results. This marks a dramatic decline of approximately US$828 million, down from a profit of US$220 million recorded in 2023.
The company attributed the financial downturn to factors such as the ongoing conflict in Sudan and the devaluation of foreign currencies, particularly the Nigerian naira. Specifically, MTN Nigeria experienced a staggering 44.8% drop in revenue during the reported period, with total revenues falling by over US$1,8 billion compared to the previous year. Nevertheless, on a constant currency basis, revenue in Nigeria saw a growth of 35.6%.
Group service revenue fell by 15.4%, dropping from US$11 billion as of December 31, 2023, to US$9 billion as of December 31, 2024. However, on a constant currency basis, service revenue increased by 13.8%.
Data revenue declined by 12.3% when reported but showed a notable increase of 21.9% when adjusted for constant currency. Earnings before interest, tax, depreciation, and amortisation (EBITDA) also fell, decreasing by 33.5% on a reported basis, though it rose by 10.2% to US$3,8 billion in constant currency.
The group reported a decrease in EBITDA margin, which fell by 8.9 percentage points to 32.0% on a reported basis, and a smaller decline of 0.8 percentage points to 38.2% when considered in constant currency terms.
Regarding MTN’s different business segments, MTN South Africa showed some resilience, with revenue growing by 3.1%, moving from just under US$2,320 billion in 2023 to just over US$2,375 billion in 2024. Despite this, outgoing voice revenue decreased by 5.5%, although data revenue rose by 2.9%.
“MTN SA has navigated through a challenging macroeconomic environment in 2024, with high interest rates and sluggish economic growth,” the company noted. Nonetheless, a slowing inflation rate and implementing a two-pot retirement system have provided some financial relief to consumers, enhancing their spending capacity.
Lastly, MTN emphasised that competition within the South African telecommunications sector has intensified.
