MTN has reported a strong underlying operational and financial performance for the period ended 31 December 2024, despite earnings being down.
Group service revenue decreased by 15,4% on a reported basis to R177,8-billion, but increased by 13,8% in constant currency; data revenue decreased by 12,3% on a reported basis, but increased by 21,9% in constant currency; and fintech revenue increased by 11% on a reported basis but increased by 28,5% in constant currency.
The group’s EBITDA (before once-off items) decreased by 33,5% on a reported basis, but increased by 10,2% to R70,1-billion in constant currency, while the EBITDA margin decreased by 8,9 percentage points (pp) on a reported basis to 32%, and 0,8pp lower to 38,2% in constant currency.
Basic earnings per share (EPS) decreased by more than 100% to a loss of -531 cents , with reported headline EPS (HEPS) decreasing by 68,9% to 98 cents.
During the period, total subscribers increased by 2,2% to 290,9-million, active data subscribers increased by 7,7% to 157,8-million and Mobile Money (MoMo) monthly active users (MAU) increased by 0,9% to 63,1-million.
MTN’s data traffic increased by 32,6% to 19 459 Petabytes, and fintech transaction volumes increased by 15,3% to 20,3-billion.
The group reported capex (ex-leases) of R29,9-billion, with capex intensity of 15,9%.
Ralph Mupita, group president and CEO of MTN Group, comments: “We are pleased to report a strong underlying performance and strategic execution for FY 2024, despite challenges in the operating environment. We are encouraged by the relative stability of some important key macroeconomic indicators in H2 – such as inflation and foreign exchange (forex) rates in certain of our key markets.
“This provided support to our results in the period, with a pleasingly positive momentum in H2 earnings, free cash flow and leverage ratio. These outcomes were underpinned by strong operational performances in several of our key markets.
“The FY 2024 result – further boosted by the approval of tariff amendments in Nigeria in the new year, and which are presently being implemented – enabled us to exit the year on a strong footing to sustain the encouraging momentum going forward.”
Despite the challenges in macro and trading environments, Mupita says MTN sustained the operational momentum of our business, as well as progressed several of its key strategic priorities.
“Our operating context was characterised by sharp devaluation of the naira, along with elevated inflation in some markets. There remained volatility in the geopolitical landscape, which had knock-on effects on our business. In Sudan, the ongoing conflict in the country negatively impacted our operational and financial performance.
“Against this backdrop we deployed R29,9-billion of capex (ex-leases) to strengthen the quality and capacity of our networks. Alongside execution of our commercial strategies, our continued investment enabled us to capture the ongoing structural demand for, and expansion in, our data and fintech services.
“In this regard, we were encouraged by the persistent robust growth in data traffic, up by 32,6% (37,3% excluding JVs), and fintech transaction volumes (up 15,3%).”
Mupita adds that MTN is pleased with the progress in executing it key strategic initiatives in a challenging environment.
“In Q1, we signed the definitive agreements with Mastercard for a minority investment into our Group Fintech structure. This complemented the commercial agreements completed with Mastercard in 2023 to accelerate the growth of the business.
“With regards to our portfolio optimisation priorities, we finalised the sale of MTN Afghanistan in February 2024, which completed our exit of the consolidated Middle East operations. We announced conclusions of the sales of MTN Guinea-Bissau and MTN Guinea-Conakry in August 2024 and December 2024, respectively – further enhancing the focus and risk profile of our portfolio.
“In August 2024, we successfully renegotiated the tower lease contracts in Nigeria, which incorporate more sustainable terms that enable MTN Nigeria to better manage impacts of the macroeconomic environment on the business,” he adds. “This was a significant milestone in our efficiency initiatives, resulting in R1.3 billion in opex savings benefits to MTN Nigeria in FY 2024.”
MTN also exceeded the regulatory requirement of 25% localisation for MTN Ghana in H1, with its local ownership now at 30%. “We also successfully executed the further sell-down of 7% of MTN Uganda, achieving compliance with local listing requirements of a minimum public float of 20%.”
During the year, the group extended the MTN Zakhele Futhi Broad-based black economic empowerment (B-BBEE) transaction to November 2027, underpinning its Level 1 B-BBEE status for MTN SA and the group.