MTN Group, Africa’s largest telecom operator, reported a half-year loss on Monday, impacted by the devaluation of the Nigerian naira and operational difficulties in Sudan.
The group reported a loss of 7.39 billion rand ($414.7 million) for the six months ending in June, compared to a profit of 4.14 billion rand in the same period last year, according to a statement released on Monday.
The loss is MTN’s first since it paid a fine of more than $1 billion imposed on the company by the Nigerian government, per Bloomberg.
The statement reads:
“Although the underlying commercial momentum and strategy execution were solid in the period, macro headwinds impacted operating results,” Group CEO Ralph Mupita said.
“The further devaluation in the naira against the U.S. dollar, the translation impact on reporting currency (rands) of the naira and the ongoing conflict in Sudan had the most significant impact on reported results.”
The company, which serves 288 million customers across 18 African markets, saw its group service revenue drop by 20.8%, decreasing from 107.7 billion rand to 85.3 billion rand.
However, in constant currency terms, group service revenue—excluding device and SIM card sales—increased by 12.1%.
MTN’s service revenue from South Africa surpassed that of its largest revenue market, MTN Nigeria, with a marginal growth of 3.3% to 21.1 billion rand. In contrast, Nigeria’s service revenue plummeted by 52.9% to 20.5 billion rand.
However, in constant currency terms, Nigeria’s service revenue grew by 32.4%. MTN also announced that the board anticipates paying a minimum ordinary final dividend of 330 cents per share for the 2024 financial year.
MTN is planning to exit some markets and is currently in discussions regarding its unit in Guinea Conakry, MTN Chief Executive Officer Ralph Mupita said.
The company also intends to reduce its stake in the Nigerian business to as low as 65% by selling shares to local shareholders, he added.
MTN currently holds a 73% stake in its Nigerian operations, according to data compiled by Bloomberg.
