MTN Group Faces Earnings Decline Amid Currency Fluctuations, Inflation 

The recent financial report of South Africa’s telco, MTN Group, showed that revenues took a sharp decline due to currency fluctuations as well as inflation in Nigeria. 

According to the company’s CEO, Ralph Mupita, currency volatility in Nigeria and ongoing inflation are both key factors to be addressed in the coming years. Moreover, the company’s annual results presentation emphasized the importance of tackling these challenges, alongside efforts aimed at reducing costs and advancing its digital platforms strategy, recognizing the difficulties of addressing inflation in major markets.  

While he highlighted the positive decrease in Ghana, noting that the high inflation happening in Nigeria was expected. In fact, the unpredictable fluctuations of the Nigerian naira contribute to the uncertainty, requiring MTN to plan for various scenarios to effectively manage its operations in the country. 

Despite specific plans of the South African telecom company not being disclosed, Mupita suggested that more information would be shared during an upcoming AGM set for April 30. The company also intends to discuss potential price adjustments with regulators to counterbalance increasing costs. 

Meanwhile, the situation of MTN in Sudan is another challenge to tackle, as the region has been in conflict since April 2023, which is having an impact on the unit’s revenue and operations. Thus, most of the MTN Sudan team moved to Egypt. 

The company’s strategic decision to exit middle eastern operations, including Yemen, Syria, and Afghanistan, has progressed since MTN completed it in Afghanistan, as part of the strategy. 

In parallel, the financial results of MTN in 2023 reported a significant decline in net profit but noted positive trends in data and fintech services. Additionally, the company saw a 9% increase in active data subscribers, reaching 150 million, and a 5% growth in active accounts on its mobile money platform, for a total of 72 million. The value of transactions across all fintech services reached US$272 billion, driven by improvements in payments, banktech, and remittance solutions. 

Regardless of these hurdles, MTN remains committed to its strategic goals, which include managing costs, deploying digital transformation, as well as collaborating with regulators to ensure sustainable growth in its markets. 

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