MTN Group Reports Strong 2024 Performance Amid Challenges

MTN Group ( (MTNOF) ) has released its Q4 earnings. Here is a breakdown of the information MTN Group presented to its investors.

MTN Group Limited is a Pan-African mobile operator focused on leading digital solutions for Africa’s progress, serving 291 million customers across 16 markets. The company recently released its annual financial results for the year ending December 31, 2024, highlighting a strong underlying operational and financial performance despite macroeconomic challenges.

The company’s service revenue declined by 15.4% on a reported basis but increased by 13.8% in constant currency, driven by strong growth in data and fintech services. MTN Nigeria’s performance was notably impacted by the devaluation of the naira, while MTN South Africa, Ghana, and Uganda showed positive growth. The Group’s EBITDA margin decreased to 32.0% on a reported basis but improved to 38.2% in constant currency.

MTN Group achieved significant strategic milestones, including the sale of MTN Afghanistan and the renegotiation of tower lease contracts in Nigeria, resulting in operational savings. The company also made progress in its fintech and digital services, with fintech transaction volumes increasing by 15.3% and digital revenue growing by 18.8%.

Looking forward, MTN Group remains optimistic about its growth prospects, supported by tariff amendments in Nigeria and strategic initiatives in fintech and digital services. The company plans to continue investing in its network infrastructure and aims to achieve cost savings of R7-8 billion between 2024 and 2026. MTN Nigeria has reinstated its medium-term guidance, targeting significant service revenue and EBITDA margin growth.

Overall, MTN Group is well-positioned to capture opportunities in its markets and deliver on its medium-term objectives, with a focus on sustaining growth, creating shared value, and unlocking value for stakeholders.