MTN Group (MTNJ.J), opens new tab, Africa’s biggest telecoms operator, swung to a half-year loss on Monday, weighed down by devaluation of the Nigerian naira and operational challenges in Sudan.
According to Reuters, the operator with 288 million customers across 18 markets in Africa reported a headline loss of 256 cents per share in the six-month period ended June 30, compared with restated headline earnings from a year earlier at 260 cents a 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 U.S. 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 85.3 billion rand from 107.7 billion rand.
In constant currency, group service revenue, which excludes device and SIM card revenue, rose by 12.1%.
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MTN’s service revenue from South Africa surpassed that of MTN Nigeria (MTNN.LG), opens new tab, its biggest market by revenue, growing marginally by 3.3% to 21.1 billion rand, while Nigeria tumbled by 52.9% to 20.5 billion rand. In constant currency, Nigeria grew by 32.4%.
MTN said the board anticipates paying a minimum ordinary final dividend of 330 cents per share for 2024 financial year.
