MTN Group has reported a 15.4% decline in service revenue due to currency depreciation across key markets, particularly the sharp devaluation of the Nigerian naira and volatility in other African economies.
Despite this, the telecom giant saw strong underlying growth in its data and fintech segments with key markets like Nigeria, Ghana, Uganda, and South Africa posting revenue gains in local currency terms.
The group’s total service revenue fell to R177.8 billion, impacted by local currency weakness against the South African rand. However, in constant currency terms, MTN saw a 13.8% increase in service revenue.
Strong Growth Across Key Markets
MTN Nigeria, which remains a critical market with over 80 million subscribers, recorded a 35.6% revenue growth in local currency.
Similarly, MTN Ghana posted a 34.3% increase while MTN Uganda saw 19.6% growth, and MTN South Africa recorded a modest 3.1% rise.
However, these gains were offset by currency devaluations, particularly in Nigeria, where the naira averaged ₦1,508 per dollar in 2024, compared to ₦598 per dollar in 2023.
The currency’s sharp depreciation had a direct impact on revenue conversion, limiting the company’s ability to reflect its underlying growth in financial statements.
Excluding its Sudan operations, where geopolitical instability continues to weigh on performance, MTN Group’s service revenue would have risen by 14.4%, reinforcing the company’s strong market position despite external challenges.
Currency Headwinds and Operating Challenges
MTN’s financial performance was shaped by foreign exchange volatility, inflationary pressures, and broader macroeconomic uncertainties.
The sharp depreciation of the naira, combined with inflation spikes across multiple African economies, has created operational hurdles for the telecom giant.
Group President and Chief Executive Officer Ralph Mupita acknowledged these challenges and said currency fluctuations and elevated inflation impacted MTN’s financials despite solid business growth.
“The volatility in the geopolitical landscape, coupled with sharp currency devaluations, particularly in Nigeria, created significant headwinds for our business. Inflationary pressures in key markets also weighed on consumer spending and operational costs,” Mupita stated.
The group also faced elevated operational expenses, particularly in power, logistics, and network maintenance as inflation drove up costs across multiple regions.
Future Outlook and Strategic Adjustments
Looking ahead, MTN is working on securing foreign exchange liquidity, optimizing its capital structure, and expanding fintech and data-driven revenue streams to mitigate the impact of currency depreciation.
The company has also announced plans to spin off its fintech operations in Nigeria and Ghana, a move that could unlock new investment opportunities and strengthen its financial position.
Despite macroeconomic headwinds, MTN remains confident in its long-term growth strategy, with continued investments in infrastructure, network expansion, and digital services expected to support revenue stability in the coming years.
With African markets still offering high growth potential in telecoms and fintech, industry analysts believe that MTN’s ability to navigate currency risks and macroeconomic shifts will determine its financial performance in the near term.
