Would you like to receive notifications on latest updates of the following headlines?

MTN Group Suffers Major Loss Due To Naira Devaluation

POSTED ON August 20, 2024 •   Technology      BY Benedicta Bassey
CEO, MTN, Mr Ralph Mupita/ Photo credit: Citinews

Telecommunications giant, MTN Group, has recorded a half-year loss following naira devaluation and operational challenges in Sudan.

The company reported a loss before tax of nine billion South African rand in the six months ended June 30, compared to a restated profit of 8.3 billion rand a year earlier.

Reuters quoted the CEO, MTN, Mr Ralph Mupita, as saying, “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."

Mupita explained that the company was most hit by external factors.

“Although the underlying commercial momentum and strategy execution were solid in the period, macro headwinds impacted operating results,” he said.

MTN Group, which has 288 million customers across 18 markets in Africa, said its group service revenue decreased by 20.8 per cent to 85.3 billion rand.

In constant currency, group service revenue, which excludes device and SIM card revenue, rose 12.1 per cent.

The company’s service revenue from South Africa surpassed that of MTN Nigeria, its biggest market by revenue, rising by 3.3 per cent to 21.1 billion rand.

Revenue from the company’s Nigerian operations tumbled 52.9 per cent to 20.5 billion rand, while on a constant currency basis, it increased 32.4 per cent.

The company also stated that its board expected to pay a minimum ordinary final dividend of 330 cents per share for the 2024 financial year.

The entire telecommunications sector in Nigeria is reeling under the weight of a severe investment squeeze, following the harsh economic situation taking toll on industries.

Last week, the Chief Executive Officer of MTN Nigeria, Karl Toriola, warned that the situation would worsen, as telcos faced a further decline in investments due to deteriorating economic conditions.

READ ALSO
FG Unveils Project CNG-SPROUT to Revolutionize Campus Transport with Clean Energy
BY Abiodun Saheed Omodara May 30, 2025 0

The federal government has launched a transportation initiative called "Project CNG-SPROUT," designe...

READ ALSO
Agro Alliance Takes Top Honors at Hack4Livestock with IoT Solution for Cattle Intrusions
BY Abiodun Saheed Omodara May 24, 2025 0

ABUJA, Nigeria - The Ministry of Livestock Development has announced its intention to empower 1,000...

READ ALSO
INEC Launches AI Division to Enhance Electoral Processes, Address Challenges
BY Abiodun Saheed Omodara May 23, 2025 0

ABUJA, Nigeria - The Independent National Electoral Commission (INEC) has sanctioned the establishme...

READ ALSO
Legal Obligations Remain Despite Threats to Exit Nigeria, FCCPC Rebukes Meta Platforms
BY Abiodun Saheed Omodara May 3, 2025 0

The Federal Government, through its Competition and Consumer Protection Commission (FCCPC), has crit...

READ ALSO
Digital Inequality in Africa: High costs, infrastructure gaps leave millions offline
BY Abiodun Saheed Omodara April 21, 2025 0

Despite significant investments in Nigeria and various regions of Africa, only 38 percent of the pop...

READ ALSO
CBEX unregistered digital assets exchange in Nigeria, SEC warns of investment risks
BY Abiodun Saheed Omodara April 19, 2025 0

The Securities and Exchange Commission (SEC) has announced that Crypto Bridge Exchange, also referre...

READ ALSO
NDPC launches initiative to combat cyberbullying, financial fraud through data protection
BY Abiodun Saheed Omodara April 7, 2025 0

The National Data Protection Commission (NDPC) on Monday reiterated its dedication to enhancing data...

READ ALSO
UNCTAD highlights risks of AI disparities as market approaches $4.8trn
BY Abiodun Saheed Omodara April 7, 2025 0

The widespread adoption of artificial intelligence (AI) worldwide, along with the emergence of new t...

OUR CHANNELS:

FULL TEXT: President Tinubu’s second-year anniversary speech
BY Abiodun Saheed Omodara May 30, 2025 0

Fellow Nigerians, as we mark the second anniversary of our administration, I salute your resilience...


Former CBN Governor Seeks to Overturn Forfeiture of Abuja Estate
BY Abiodun Saheed Omodara May 30, 2025 0

ABUJA, Nigeria - Former Governor of the Central Bank of Nigeria, Godwin Emefiele, has filed a petiti...


MAY 29: Fubara Reaffirms Commitment to Rivers State Amid Political Turmoil
BY Abiodun Saheed Omodara May 29, 2025 0

RIVERS, Nigeria - Suspended Rivers State Governor, Siminalayi Fubara, has reaffirmed his commitment...


South Africa Surpasses Nigeria in Fuel Imports Amid Dangote Refinery Operations
BY Abiodun Saheed Omodara May 30, 2025 0

Nigeria has lost its long-standing title as Africa’s largest importer of refined petroleum pro...


Ogun Calls Athlete Protest "Impatience" Amid Unpaid Allowances
BY Abiodun Saheed Omodara May 30, 2025 0

OGUN, Nigeria - The Ogun State Government has labeled the protest held by athletes representing the...


SEC Flags Silverkuun Investment Cooperative as Unregistered, Warn Nigerians
BY Abiodun Saheed Omodara May 30, 2025 0

The Securities and Exchange Commission (SEC) has cautioned Nigerians about putting their money in un...


ECOWAS Leaders Stress Collective Responsibility in Combating Drug Abuse
BY Abiodun Saheed Omodara May 29, 2025 0

The Economic Community of West African States (ECOWAS) has urged its member countries to collaborate...


Nigeria to Launch 7,000 Digital Hospitals to Transform Rural Healthcare
BY Abiodun Saheed Omodara May 29, 2025 0

ABUJA, Nigeria - The minister of communications, innovation and digital economy, Bosun Tijani, says...


Buhari Urges Patience with Economic Reforms under Tinubu's Leadership
BY Abiodun Saheed Omodara May 29, 2025 0

Former President Muhammadu Buhari has told Nigerians that the ongoing economic reforms under his suc...


WHO Struggles to Stabilize Finances Amid $1.7 Billion Deficit and Major Donor Withdrawal
BY Abiodun Saheed Omodara May 29, 2025 0

The World Health Organization (WHO) attempted to stabilize its finances during its annual assembly t...


More Articles

Load more...

Menu