MTN Group Makes a $414.7 Million Loss, its First Loss in 8 Years

MTN Group, the South African-owned multinational corporation and mobile telecom provider, has reported its first loss since 2016, largely due to the sharp devaluation of the Nigerian naira.

The company announced a loss of R7.39 billion ($414.7 million) for the six months ending in June 2024, a stark contrast to the R4.14 billion ($232.3 million) profit recorded during the same period last year.

Nigeria, where MTN has about 77 million customers, has traditionally been an economic stronghold for the telecom operator, accounting for roughly one-third of its overall earnings.

However, since May 2023, the naira has depreciated by over 70% against the US dollar, following President Bola Tinubu’s implementation of foreign-exchange reforms and other economic policies aimed at stabilising the Nigerian economy.

In addition to the currency devaluation in the Western African nation, operational challenges in Sudan due to ongoing conflict further exacerbated the group’s financial slump.

MTN South Africa Delivers Robust Performance

Despite the group’s overall loss, MTN South Africa has managed to deliver a robust performance, showcasing resilience in the face of a challenging economic environment.

In the same six-month period, MTN South Africa reported a 3.3% increase in service revenue, buoyed by strong growth in its fintech business and enterprise sales.

“MTN South Africa, which completed its network resilience plan in the period, demonstrated encouraging progress in key areas of the business. This helped to drive some acceleration in overall service revenue,” said Ralph Mupita, MTN Group CEO.

MTN South Africa’s earnings before interest, tax, depreciation, and amortisation (EBITDA) also saw a 3.8% increase, with an EBITDA margin expanding to 36.6% — up by 0.4% points year on year.

Furthermore, the company’s subscriber base grew by 4.7%, reaching 38.5 million by the end of June.

Subscriber Growth in South Africa

Post-paid subscribers increased by up to 9.2%, bringing the new total to 9.4 million, driven by the growing popularity of integrated voice and data plans as well as home broadband services.

Prepaid subscribers reached 29 million, marking a 3.3% rise.

The loss is particularly significant as it marks the first time MTN has reported a negative result since 2016 — the same year the Nigerian government fined the company more than $1.5 billion for regulatory violations, negotiated from the initial fine of $5.2 billion (₦1.04 trillion at the time).

Despite these challenges, MTN Group remains committed to its operations in Nigeria and other African markets, recognizing their long-term growth potential.

The company continues to invest in network infrastructure and digital services to better serve its customers and drive innovation in the telecom industry across the continent.

Was this information useful? Drop a nice comment below. You can also check out other useful contents by following us on X/Twitter @siliconafritech, Instagram @Siliconafricatech, or Facebook @SiliconAfrica.