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
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...

READ ALSO
AI's Role in Spiritual Guidance: Enhancing teachings while upholding values
BY Abiodun Saheed Omodara April 5, 2025 0

Artificial Intelligence (AI), a collection of technologies programmed into computers to execute vari...

READ ALSO
U.S. shows highest anxiety over AI Job loss amidst technological advancements
BY Abiodun Saheed Omodara April 3, 2025 0

Despite its advanced status, research indicates that the United States of America (USA) has the high...

READ ALSO
NITDA Partners Afrovision technologies to bridge job gap for Nigeria’s Tech Talent
BY Abiodun Saheed Omodara April 3, 2025 0

In an effort to tackle the ongoing challenge of job placement for Nigeria’s expanding tech tal...

READ ALSO
OpenAI valuation hits $300 billion after SoftBank-led fund
BY Abiodun Saheed Omodara April 2, 2025 0

The Japanese telecommunications company, alongside a group of investors, has recently announced yet...

READ ALSO
Nigeria set to lead in smart mobility with AI speed train initiative
BY Abiodun Saheed Omodara March 26, 2025 0

The Ogun-Guangdong Free Trade Zone (OGFTZ) and China’s Zhongguancun Infogu Asset Management Co...

OUR CHANNELS:

Family seeks Justice following Police arrest and disappearance
BY Abiodun Saheed Omodara April 27, 2025 0

The family of Osas Azenabor, who was allegedly arrested by police on November 1, 2024, in the Mile 1...


Local groups seek FG backing to fight insecurity in Nigeria
BY Abiodun Saheed Omodara April 27, 2025 0

In the face of increasing insecurity nationwide, hunters and farmers are urging the Federal Governme...


Zulum raises alarm over Boko Haram resurgence in Borno State
BY Abiodun Saheed Omodara April 27, 2025 0

Borno, Nigeria - The Governor of Borno State, Babagana Zulum has expressed concern about the re-emer...


Atiku declares 2027 elections a referendum against Tinubu's administration
BY Abiodun Saheed Omodara April 27, 2025 0

Former Vice President Atiku Abubakar has stated that the upcoming 2027 general election will not be...


CBN allows cash transactions for 2025 pilgrims to Mecca following VP intervention
BY Abiodun Saheed Omodara April 27, 2025 0

ABUJA, Nigeria - The Central Bank of Nigeria (CBN) has granted permission for the 2025 intending pil...


Court order EFCC to detain CBEX Staff
BY Abiodun Saheed Omodara April 27, 2025 0

ABUJA, Nigeria (NAN) - The Federal High Court in Abuja on Thursday, authorized the Economic and Fina...


2face set to marry Edo politician Natasha in traditional wedding, April 25
BY Abiodun Saheed Omodara April 27, 2025 0

A popular Nigerian singer and multiple award winner, Innocent Idibia, known as "2Baba," alongside Ed...


Nigeria must leverage skills of retired military personnel in security strategy- Babandede
BY Abiodun Saheed Omodara April 27, 2025 0

Muhammed Babandede, a former comptroller-general of the Nigeria Immigration Service, has urged Presi...


Bauchi university dismisses lecturer over sexual assault
BY Abiodun Saheed Omodara April 27, 2025 0

Bauchi, Nigeria - The Governing Council of Abubakar Tafawa Balewa University in Bauchi State has ter...


FG commends Ghana for rescuing 219 trafficked Nigerians from cybercrime
BY Abiodun Saheed Omodara April 27, 2025 0

ABUJA, Nigeria - The federal government has praised the Ghanaian authorities for rescuing at least 2...


More Articles

Load more...

Menu