The MTN Group expects to report a strong underlying performance for the 2024 financial year, ended 31 December 2014, despite the challenges in the operating environment that will drive a drop in earnings.
In a trading statement issued today, the group says the relative stability of some important key macroeconomic indicators in the second half of 2024 – such as inflation and foreign exchange (forex) rates in some key markets – provided some support to its performance. It therefore anticipates positive momentum in H2 earnings, free cash flow and holding company leverage ratio.
“In our larger operations, we expect to report an improvement in the trajectory of MTN South Africa’s profitability, particularly in H2, as well as strong operational performances in MTN Nigeria, MTN Ghana and MTN Uganda,” according to the statement.
“The approval of tariff adjustments by regulators in Nigeria, announced in January 2025, was a significant milestone in ensuring the long-term sustainability of our business and the telecoms industry in the country.
“MTN Nigeria has started to implement the tariff adjustments, which represent an important step towards addressing the impacts of the prevailing economic challenges on the operation.”
However, financial results remained affected by several external factors including the negative impact of local currency devaluation in the course of FY 24, particularly the naira, against the US dollar on results. This included both translation effects and forex losses in financials.
An additional factor impacting results is the operational challenges in Sudan due to the ongoing conflict in the country.
Against this backdrop, MTN is advising shareholders of the following:
- A decrease in earnings per share (EPS) of greater than 100% (or within a range of -781 cents and -736 cents). Considering the reported EPS for the corresponding financial year ended 31 December 2023 (FY 23) of 227 cents, this translates to a range of -554 cents to -509 cents for FY 24.
- A decrease in headline earnings per share (HEPS) of between -79% and -59% (or within a range of -249 cents and -186 cents). Considering the reported HEPS for the corresponding financial year FY 23 of 315 cents, this translates to a range of 66 cents to 129 cents for FY 24.
The group says the difference between FY 24 EPS and FY 24 HEPS is due to the following factors:
- Impairment losses that mainly relate to investments, goodwill, property, plant and equipment primarily related to Sudan totaling approximately -578 cents (2023: -40 cents);
- An impairment loss on remeasurement of disposal groups of approximately -8 cents (2023: -50 cents);
- A net loss on the disposal of investments in joint ventures and/or associate and/or subsidiary of approximately -36 cents (2023: nil); and
- The net loss on disposal of property, plant and equipment and intangible assets of approximately -7 cents (2023: -1 cent loss).
HEPS was negatively impacted by some non-operational items of approximately -718 cents (2023: -888 cents) for FY 24. These include:
- Hyperinflation adjustments of approximately -16 cents (2023: -150 cents);
- Foreign exchange losses of approximately -598 cents (2023: -715 cents), which includes naira depreciation impact of approximately -399 cents (2023: -593 cents);
- Deferred tax charge of approximately -58 cents (2023: nil); and
- Other non-operational items of approximately -46 cents (2023: -23 cents).
The group’s financial results are expected to be announced on Monday, 17 March 2025.