Table of Contents
Key Points
- Africa’s largest mobile network operator reported a $614 million loss in 2024, hit by naira devaluation, financial strain in Afghanistan, and Sudan’s conflict.
- Africa’s largest telecom firm reported a $614 million loss in 2024, hit by naira devaluation, financial strain in Afghanistan, and Sudan’s conflict.
- The board raised dividends to $0.19 per share, reaffirming confidence in the company’s financial resilience and medium-term growth targets.
MTN Group, Africa’s largest mobile network operator, led by Zimbabwean executive Ralph Mupita, reported a staggering $614 million loss for the year ended Dec. 31, 2024, largely due to the impact of the naira’s decline on its Nigerian operations and challenges in other key markets.
According to its recently published annual report, the group recorded a loss of R11.2 billion ($615.52 million) in 2024, a sharp contrast to the R4.02 billion profit it posted in 2023. The company attributed this downturn to the steep devaluation of the naira, financial strain in Afghanistan, and impairments linked to the ongoing conflict in Sudan.
Revenue took a hit, dropping from R221 billion ($12.15 billion) in 2023 to R188 billion ($10.3 billion) in 2024. While business remained stable in South Africa, Uganda, Ghana, and Cameroon, the situation in Nigeria, Afghanistan, and Sudan weighed heavily on overall performance.
MTN’s South Africa revenue surpasses Nigeria
South Africa overtook Nigeria as MTN’s largest market, generating R52.6 billion ($2.9 billion) in revenue, up from R51.8 billion ($2.8 billion) the previous year. Meanwhile, group earnings before interest, taxation, depreciation, and amortization (EBITDA) stood at R19.6 billion ($1.08 billion), rising from R18.6 billion ($1.02 billion) in 2023.
While South Africa saw steady growth, operations in Nigeria, Afghanistan, and Sudan struggled. Revenue from these three markets plummeted—Nigeria’s dropped from R74.27 billion ($4.08 billion) in 2023 to R41.04 billion ($2.25 billion) in 2024. Afghanistan and Sudan also saw sharp declines, with revenue falling from R2.63 billion ($144.7 million) and R3.48 billion ($191 million) in 2023 to R498 million ($27.4 million) and R786 million ($43.2 million), respectively.
EBITDA followed a similar trend. MTN Nigeria reported R16 billion ($880.2 million), a steep drop from R36.9 billion ($2.03 billion) in 2023. Afghanistan’s EBITDA fell from R735 million ($40.4 million) to R158 million ($8.7 million), while Sudan slid into a loss of R114 million ($6.27 million) after reporting R1.06 billion ($58.3 million) in EBITDA the previous year.
CEO highlights resilience, market stability
Despite these setbacks, MTN Group President and CEO Ralph Mupita remained optimistic about the group’s resilience. “We are pleased to report a strong underlying performance and strategic execution for FY 2024, despite challenges in the operating environment,” Mupita said.
Mupita pointed to improving economic conditions in some key markets during the second half of the year. “We are encouraged by the relative stability of some key macroeconomic indicators—such as inflation and foreign exchange rates—which provided support to our results,” he said. “The FY 2024 result – further boosted by the approval of tariff amendments in Nigeria in the new year, and which are presently being implemented – enabled us to exit the year on a strong footing to sustain the encouraging momentum going forward.”
MTN reports 291 million users, dividend rises
MTN closed the year with a subscriber base of 291 million, excluding markets it exited, reflecting net additions of 6.2 million customers. The company noted that subscriber growth was affected by strict SIM registration regulations in some countries and a decline in its conflict-hit Sudanese market. Excluding Sudan, net additions stood at 9.4 million.
The heavy losses also weighed on MTN’s balance sheet. Total assets declined from R434.7 billion ($24 billion) at the end of 2023 to R430.96 billion ($23.7 billion) as of Dec. 31, 2024. Equity and retained earnings also fell, from R150.2 billion ($8.26 billion) and R96.3 billion ($5.3 billion) to R138.4 billion ($7.61 billion) and R79.5 billion ($4.37 billion), respectively.
Despite the financial hit, MTN remained committed to rewarding shareholders. The board declared a dividend of R3.45 ($0.19) per share, up from R3.3 ($0.18) in 2023. Management reaffirmed its confidence in the company’s commercial strength, stating that it remains on track with its medium-term targets. The board also expects to pay a minimum ordinary dividend of R3.7 ($0.20) per share for the 2025 financial year.
