MTN Group anticipates sharp decline in earnings due to forex losses from Nigeria 

The Group disclosed this in a trading statement released on Thursday.

This was in fulfillment of the Johannesburg Stock Exchange listing requirements that issuers must publish a trading statement as soon as they are satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported upon next will differ by at least 20% from the financial results for the previous corresponding period.

MTN said it also expects its headline earnings per share (HEPS) to decline despite the company’s strong underlying performance.

“The financial results…remained affected by several external factors including the negative impact of local currency devaluation in the course of FY 24, particularly the naira, against the US dollar on our results.  

“This included both translation effects and forex losses in our financials. An additional factor impacting our results is the operational challenges in Sudan due to the ongoing conflict in the country,” MTN Group stated.

MTN Group reported relative stability in key macroeconomic indicators, such as inflation and foreign exchange (forex) rates, in some of its key markets during the second half of 2024 (H2).

“MTN Nigeria has started to implement the tariff adjustments, which represent an important step towards addressing the impacts of the prevailing economic challenges on the operation,” it said.

MTN Nigeria in its financial results for the first nine months of 2024 reported a loss after tax of N514.9 billion, primarily attributed to naira depreciation, which increased foreign currency-denominated obligations.