- MTN Group has warned of a 140% to 150% drop in headline earnings per share (HEPS) and a 175% to 180% decrease in earnings per share (EPS) for its half-year results.
- The declines are attributed to the depreciating Nigerian naira and operational challenges in Sudan due to ongoing conflict.
- With negative impacts expected across its subsidiaries—Nigeria, Ghana, and South Sudan—the company cites adverse currency translation effects (rand) as a significant factor affecting its H1 2024 financial performance.
With over 288 million users across 18 African countries, MTN Group anticipates a decline in headline earnings per share and earnings per share (EPS) for the six months leading up to June 30, 2024. This follows a 13% increase in 2023. The telco will release its half-year report on August 19, 2024.
The negatively impacted HEPs and EPs were attributed to the following factors:
- Hyperinflation adjustments
- Foreign exchange losses
- Deferred tax charge/asset reversal
- Impairment losses that mainly relate to goodwill, property, plant and equipment
- Impairment loss on remeasurement of disposal groups
- Other non-operational items.
Despite the anticipated decline, MTN Group remains confident in its underlying performance, bolstered by strong cash flow in key markets.
The company is particularly optimistic about MTN Ghana and MTN Uganda, which have shown impressive performance in H1 2024, and MTN South Africa’s strong sector presence. These factors contribute to the company's hopeful outlook for substantial progress.
MTN Group reported an 18.8% drop in Q1 service revenue, largely due to MTN Nigeria's 52.8% decline, bringing its contribution to R10.2 billion ($553.7 million).
Despite selling its West African subsidiary MTN Guinea-Bissau, which faced financial difficulties after defaulting on a R171 million ($9.3 million) loan, the company is focusing on strategic plans following the release of its half-year report.
MTN Nigeria and IHS Towers had renegotiated the terms of the Tower master’s lease agreement, extending 12,500 tenancy contracts till December 2032. The company emphasised that the renegotiated terms intend to mitigate macro risks, support margin recovery, and address its negative equity position.
