MTN Group, Africa’s largest telecoms operator, has reported that it is expecting to incur a half-year loss due to the devaluation of the Nigerian naira and operational challenges in Sudan.
The company, which serves 288 million customers across 18 markets in Africa, anticipates a significant decrease in headline earnings per share in the first six months of the year compared to the same period last year.
The devaluation of the naira against the U.S. dollar has resulted in higher operating and net finance costs for MTN Nigeria, the company’s largest market. MTN stated that the currency devaluation would reduce group results by 90 cents, with further foreign exchange losses from its Nigerian unit estimated to have an additional negative impact.
Additionally, the decline in the value of most local currencies and operational challenges in Sudan are expected to further impact the company’s financial results, which are reported in the South African rand. MTN plans to release its first-half results on August 19.
MTN Nigeria has successfully renegotiated local lease agreements with tower operator IHS, extending existing contracts until the end of 2032. These renegotiated terms seek to address macro risks affecting MTN Nigeria, aid in margin recovery, and resolve its negative equity position.
Moreover, MTN Nigeria and IHS have reached a mutual agreement with American Tower Corporation (ATC) regarding approximately 2,500 sites that were transferred to ATC from IHS’ portfolio. As per the agreement, ATC will provide tower services at up to about 2,100 sites, while IHS will manage up to approximately 1,400 sites, including 1,000 new MTN sites that the two tower companies will share.
