MTN Group has issued a warning to investors, anticipating a significant decline in its full-year headline earnings per share (Heps) for 2024, ranging from 59% to 79%.
The company’s earnings per share are expected to take an even bigger hit, plummeting by over 100%, primarily due to substantial foreign exchange losses.
The primary culprit behind this decline is currency devaluation, particularly in Nigeria, where the naira’s depreciation has resulted in significant forex losses.
MTN estimates that these losses have cost the company $0.32 per share, with the naira alone accounting for $0.21 of that amount.
Despite these weak earnings, MTN emphasizes that it had a strong operational performance in 2024, with improvements in the second half of the year.
The company’s major markets, including South Africa, Nigeria, Ghana, and Uganda, performed well, with MTN South Africa experiencing a profitability boost in the second half of the year.
However, Nigeria remains a critical challenge for the company, and MTN is relieved that regulators have finally approved tariff adjustments in January 2025.
The company has begun implementing these new tariffs, which it believes will help sustain the telecoms industry despite economic pressures.
The full financial report is scheduled to be released on March 17, 2025, providing investors with a comprehensive picture of MTN’s performance.
