MTN Group Ltd., Africa’s leading wireless carrier, reported its first loss since 2016 due to the Nigerian naira’s severe devaluation. The company suffered a 7.39 billion rand ($414.7 million) loss for the first half of 2024, compared to a profit of 4.14 billion rand the previous year. The naira’s slump, alongside other market challenges, has impacted earnings. MTN is considering reducing its stake in Nigeria and exiting other markets.
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By Loni Prinsloo
MTN Group Ltd., Africa’s biggest wireless carrier by revenue, posted its first loss since 2016 after the devaluation of the Nigerian naira crimped income from one of its key markets.
The group reported a loss of 7.39 billion rand ($414.7 million) in the six months through June, compared with 4.14 billion rand profit a year earlier, it said in a statement Monday. The loss is MTN’s first since it paid a fine of more than $1 billion imposed on the company by the Nigerian government.
The Nigerian naira has slumped more than 70% against the dollar since President Bola Tinubu came to power in May 2023 and began implementing foreign-exchange and other economic reforms. MTN has about 77 million customers in Nigeria and historically derives about a third of its earnings from Africa’s most-populous nation.
Currency devaluations in other markets, including South Sudan, have also impacted MTN’s earnings.
MTN expanded its total number of customers by 0.8% to 288 million, despite its exit from Afghanistan and the ongoing conflict in Sudan leading to a decline of users there.
The company is looking to exit more markets, and is currently in talks over its Guinea Conakry unit, MTN Chief Executive Officer Ralph Mupita said in a call with reporters. It also plans to reduce its stake in the Nigeria business to as low as 65% through sales to local shareholders, he said.
MTN currently controls 73% of the Nigerian business, according to data compiled by Bloomberg.
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© 2024 Bloomberg L.P.
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