MTN Group's FY profit hammered by Nigerian currency devaluation

The MTN Group, a leading telecommunications company, has reported a loss after tax of R11.2 billion for its 2024 financial year, a significant decline from the R4 billion profit in 2023. The FY24 loss was mainly attributed to the devaluation of the Nigerian naira and impairments relating to the conflict in Sudan. Despite these challenges, MTN achieved a 13.8% increase in group service revenue on constant currency terms. This growth was primarily driven by a 35.6% increase in MTN Nigeria's service revenue and a 28.5% rise in fintech services. During a recent interview on CNBC Africa, MTN Group CEO, Ralph Mupita, discussed the company's performance and outlined some key factors affecting its operations. **Nigeria: Moving Past Challenges** Nigeria played a crucial role in MTN's performance, with strong service revenue growth in the region. While challenges like unrealized losses on tower lease liabilities and asset impairments in Sudan impacted the financial results, the underlying performance remained encouraging. Mupita expressed optimism about Nigeria's trajectory, especially with tariff increases expected to drive revenue growth. He emphasized the importance of implementing these increases sensibly to ensure customer retention and affordability. **Sudan and Future Plans** Regarding Sudan, Mupita clarified that there were no immediate plans to exit the market despite the challenges posed by the conflict. The company continues to assess the situation and make necessary adjustments to navigate the conditions in the region. As for other growth drivers like South Africa, Mupita acknowledged the positive service revenue growth but noted pressure in the consumer prepaid segment. He remains cautiously optimistic about the impact of potential VAT increases on consumer spending in the country. **Fintech Growth and Future Strategies** Fintech emerged as a significant area of growth for MTN, with impressive revenue growth and a focus on advanced services like payments, bank tech, and remittances. Collaborations with partners like MasterCard have been instrumental in scaling up these operations across various markets. Mupita highlighted the shift towards advanced services as a key strategy for future expansion in the fintech sector. Looking ahead, Mupita expressed confidence in MTN's ability to navigate challenges and capitalize on growth opportunities in key markets. With a strategic approach to tariff increases, continued focus on high-quality services, and investments in fintech innovations, the company aims to drive sustainable growth and financial recovery.