Olufemi Adeyemi 


MTN Group reported a half-year loss on Monday, marking a significant shift for Africa's largest telecommunications operator as it faced challenges stemming from the devaluation of the Nigerian naira and operational difficulties in Sudan.

The company disclosed a pre-tax loss of 9 billion rand for the six months ending June 30, in contrast to a restated profit of 8.3 billion rand during the same period the previous year.

CEO Ralph Mupita noted that "the further devaluation in the naira against the U.S. dollar and the ongoing conflict in Sudan had the most significant impact on reported results."

With a customer base of 288 million across 18 African markets, MTN Group experienced a 20.8% decline in group service revenue, totaling 85.3 billion rand.

However, when adjusted for constant currency, this revenue, excluding device and SIM card sales, increased by 12.1%. Notably, service revenue from South Africa surpassed that of MTN Nigeria, the company's largest revenue market, rising by 3.3% to 21.1 billion rand.

Conversely, revenue from Nigeria plummeted by 52.9% to 20.5 billion rand, although it saw a 32.4% increase in constant currency terms.

The Nigerian economy has been grappling with persistent dollar shortages, prompting authorities to devalue the naira twice within a year as part of new government initiatives aimed at stabilizing the currency and attracting investment.

MTN Group, which plans to distribute a minimum ordinary final dividend of 330 cents per share for fiscal 2024, is actively pursuing a target of raising 25 billion rand by next year through the sale of non-core assets and reducing its ownership stakes in various businesses, as stated by Mupita during a post-earnings call.

The company has already secured 21.7 billion rand from non-core asset sales and is on track to meet its 25 billion rand goal.

During the reporting period, MTN Group reduced its stakes in MTN Ghana and MTN Uganda, generating a combined 1.7 billion rand.

Further stake sales are anticipated in Ghana, Cameroon, Ivory Coast, and Nigeria, according to Mupita.