Business
Naira Depreciation, Turmoil in Sudan Drag Our Revenue Down – MTN
- Revenue Decline: MTN’s service revenue fell by 15.4% due to the naira’s depreciation and the conflict in Sudan, despite a 13.8% increase in constant currency.
- Fintech Spin-Off: MTN plans to separate its fintech operations in Nigeria, Ghana, and Uganda by mid-2025, allowing Mastercard to acquire a minority stake valued at $5.2 billion.
- Subscriber Growth: Despite financial challenges, MTN’s total subscribers increased to 290.9 million, with active data users rising by 7.7% to 157.8 million.
MTN has blamed the drop in its revenue on economic challenges in Nigeria and the ongoing conflict in Sudan. In its financial report for the year ending December 31, 2024, released in Johannesburg, South Africa, the company said the Nigerian naira’s depreciation and the Sudan conflict negatively affected its performance.
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According to the report, MTN’s total service revenue fell by 15.4% to R177.8 billion on a reported basis but increased by 13.8% when adjusted for currency changes. Excluding MTN Sudan, the growth was 14.4%.
The company said data revenue dropped by 12.3% on a reported basis but increased by 21.9% in constant currency. Financial technology (fintech) revenue increased by 11%.
MTN’s earnings before interest, taxes, depreciation, and amortization (EBITDA) fell by 33.5%, and the EBITDA margin dropped by 8.9 percentage points. Basic earnings per share (EPS) decreased by over 100%, resulting in a loss of -531 cents, while headline EPS dropped by 68.9% to 98 cents.
Despite these challenges, MTN reported a 2.2% increase in total subscribers, reaching 290.9 million. Active data users grew by 7.7% to 157.8 million. Mobile Money (MoMo) monthly active users rose by 0.9% to 63.1 million, while data traffic increased by 32.6% to 19,459 petabytes. Fintech transaction volumes also increased by 15.3% to 20.3 billion.
MTN Group President and CEO Ralph Mupita said, “We are pleased with our strong underlying performance and strategic progress despite the tough operating environment. There was more stability in key economic factors like inflation and foreign exchange rates during the second half of the year, which helped improve our results.”
MTN Plans Fintech Spin-Off in 2025
MTN also announced plans to separate its fintech operations in Nigeria, Ghana, and Uganda by mid-2025. This move is part of a deal allowing Mastercard Inc. to acquire a minority stake in these high-growth areas.
During an interview with Bloomberg, Mupita explained that the spin-off process is more advanced in Uganda and Ghana. However, Nigeria poses additional regulatory challenges that the company is working to resolve.
The deal with Mastercard values MTN’s fintech business at $5.2 billion, with Mastercard expected to buy a stake worth up to $200 million.
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MTN is also exploring network-sharing agreements to cut infrastructure costs and improve service delivery, following a strategy already used in European markets
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