MTN Group Faces 68.9% Profit Decline Amid Currency Challenges

MTN Group reported a 68.9% decline in annual profits due to Nigeria’s currency devaluation and operational issues in Sudan, with earnings per share falling to 98 cents. The company declared a dividend increase from 330 to 345 cents per share despite the financial downturn.

MTN Group, Africa’s leading telecommunications provider, has disclosed a significant decrease in its profits, with a reported 68.9% fall in full-year earnings. This downturn is attributed to the devaluation of Nigeria’s currency and operational difficulties in Sudan, impacting the company’s overall performance. The company disclosed that its headline earnings per share declined to 98 cents for the fiscal year ending December 31, 2024, down from 315 cents the previous year.

Despite the profit slump, MTN Group announced a final dividend for its shareholders, increasing it to 345 cents per share from the previous 330 cents. This decision reflects the company’s commitment to returning value to its investors, even amidst challenging economic conditions. The decline in earnings is a critical concern for the telecom giant as it navigates a fluctuating market and geopolitical issues.

The report highlights the ongoing financial and operational challenges faced by MTN, exacerbated by macroeconomic factors in its largest market, Nigeria, where currency devaluation has had a substantial effect on revenues. Furthermore, issues in Sudan have contributed to operational complications, underscoring the need for robust strategies to mitigate such risks in the future.

In conclusion, MTN Group is encountering significant financial hurdles due to external factors such as the devaluation of the Nigerian currency and operational struggles in Sudan. Despite a drastic reduction in its profit earnings, the firm has opted to increase its final dividend, demonstrating a commitment to shareholder value. These challenges illustrate the volatile landscape in which MTN operates, necessitating careful navigation to sustain its market position.

Original Source: www.cnbcafrica.com