MTN reports R11.2-billion loss

MTN Group recorded a loss after tax of R11.2 billion last year, according to its 2024 annual results.

This represents a roughly R15 billion drop from the R4 billion profit the company recorded in 2023.

MTN said its financial results were impacted by the conflict in Sudan and foreign exchange devaluation, particularly for the Nigerian naira.

MTN Nigeria’s revenue declined 44.8% during the period.

Revenue generated was more than R33 billion less in 2024 than in 2023 on a reported basis. On a constant currency basis, revenue in Nigeria grew by 35.6%.

Group service revenue decreased by 15.4% from R210 billion as of 31 December 2023 to R178 billion as of 31 December 2024.

However, it noted that group service revenue increased by 13.8% on a constant currency basis.

Overall, data revenue declined by 12.3% on a reported basis but increased by 21.9% on a constant currency basis.

At the same time, earnings before interest, tax, depreciation, and amortisation (EBITDA) decreased by 33.5% on a reported basis but increased by 10.2% to R70.1 billion in constant currency terms.

“EBITDA margin decreased by 8.9 percentage points on a reported basis to 32.0%, and 0.8 percentage points lower to 38.2% in constant currency,” the group said.

Regarding its individual businesses, MTN South Africa’s revenue grew by 3.1% from just under R42 billion as of 31 December 2023 to just over R43 billion as of 31 December 2024.

At the same time, outgoing voice revenue declined by 5.5%, and data revenue increased by 2.9%.

“MTN SA continued to steer through a challenging macro environment in 2024, with interest rates remaining relatively elevated and economic growth subdued,” said MTN.

“However, the slowing in the inflation rate and the introduction of the two-pot retirement system have benefitted consumers and helped with an increased ability to spend.”

MTN also said it was experiencing intensified competition in South Africa’s telecoms sector.

The table below summarises the MTN Group’s results for the financial year ended 31 December 2024.