Africa’s biggest telecoms operator, MTN Group, reported a group service revenue slump of 20.8% to 85.3 billion rands in H1 2024. The revenue drop was due to the devaluation of the Nigerian naira and operational challenges in Sudan.
Revenue Dynamics
MTN’s service revenue from South Africa surpassed that of MTN Nigeria, growing marginally by 3.3% to 21.1 billion rands, while Nigeria tumbled by 52.9% to 20.5 billion rands. In constant currency, Nigeria grew by 32.4%. Group service revenue, which excludes device and SIM card revenue, rose by 12.1%. However, the telecoms operator reported a headline loss of 256 cents per share in the six months ended June 30, compared with restated headline earnings from a year earlier at 260 cents a share.
Impact of External Factors
Group CEO Ralph Mupita noted that the company was largely affected by external factors. He stated: 'Although the underlying commercial momentum and strategy execution were solid in the period, macro headwinds impacted operating results'. The 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.
Electricity Generation License in Nigeria
The Nigerian Electricity Regulatory Commission (NERC) issued permits to Golden Penny Power Limited, MTN Communications Nigeria Limited, and others for mini-grid electricity generation. MTN was granted a permit to build four captive generation plants across Lagos State with a capacity of 15.94MW. Golden Penny Power Limited got a license to build six off-grid gas plants in Lagos, Oyo, Ogun, and Cross River states with a total capacity of 100MW.
Despite the significant revenue drop, MTN Group assures investors of resilient underlying performance and positive momentum in key African markets such as Ghana and Uganda, and expects further progress in Nigeria with its new electricity generation license.
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