MTN Group has alerted its shareholders that it is anticipating a significant decline in its earnings per share (EPS) for the full year ended 31 December 2024 primarily due to forex losses recorded from Nigeria.
The Group disclosed this in a trading statement released on Thursday.
This was in fulfillment of the Johannesburg Stock Exchange listing requirements that issuers must publish a trading statement as soon as they are satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported upon next will differ by at least 20% from the financial results for the previous corresponding period.
MTN said it also expects its headline earnings per share (HEPS) to decline despite the company’s strong underlying performance.
“The financial results…remained affected by several external factors including the negative impact of local currency devaluation in the course of FY 24, particularly the naira, against the US dollar on our results.
“This included both translation effects and forex losses in our financials. An additional factor impacting our results is the operational challenges in Sudan due to the ongoing conflict in the country,” MTN Group stated.
Strong performance amid macroeconomic challenges
MTN Group reported relative stability in key macroeconomic indicators, such as inflation and foreign exchange (forex) rates, in some of its key markets during the second half of 2024 (H2).
- This stability provided support for the Group’s performance, leading to positive momentum in H2 earnings, free cash flow, and holding company leverage ratios.
- According to the trading statement, the Group’s larger operations, including MTN South Africa, MTN Nigeria, MTN Ghana, and MTN Uganda, delivered strong operational performances.
- The Group also noted that the approval of tariff adjustments by regulators in Nigeria, announced in January 2025, was a significant milestone in ensuring the long-term sustainability of our business and the telecoms industry in the country.
“MTN Nigeria has started to implement the tariff adjustments, which represent an important step towards addressing the impacts of the prevailing economic challenges on the operation,” it said.
What you should know
MTN Nigeria in its financial results for the first nine months of 2024 reported a loss after tax of N514.9 billion, primarily attributed to naira depreciation, which increased foreign currency-denominated obligations.
- The loss represents a 3,335% increase when compared with the N15.0 billion loss recorded in the same period of 2023.
- Consequently, MTN’s retained earnings and shareholders’ equity turned negative, amounting to N723.0 billion and N573.6 billion, respectively, as of September 2024.
- In his comments on the results, MTN Nigeria CEO Karl Toriola noted that had it not been for the forex revaluation losses, the company’s profit after tax (PAT) would have been N118.5 billion, down 59.2% year-on-year.
- The MTN Group’s financial results for full year 2024 are expected to be announced on or about Monday, 17 March 2025.
