MTN Nigeria’s Revenue Soars 35.6% After Tariff Adjustments

MTN Nigeria saw a significant 35.6% surge in service revenue in March, following tariff adjustments implemented in February. The MTN Group’s report from its South African office on Monday also forecasted further revenue growth in 2025 as a result of these tariff changes.

Despite this positive outcome in Nigeria, MTN Group reported a 69% decline in its full-year earnings, largely due to the devaluation of the Nigerian naira and operational challenges in Sudan. The group’s headline earnings per share (HEPS) dropped to 98 cents for the year ending December 31, 2024, down from 315 cents in 2023.

Group President & CEO, Ralph Mupita, expressed optimism about the future, citing easing inflation, reduced forex volatility, especially for the naira, and the positive effects of the tariff adjustments in Nigeria. He also highlighted the renegotiation of tower lease contracts in Nigeria, which has allowed MTN Nigeria to better manage the challenges of macroeconomic instability.

“Moreso, MTN Group is well-positioned to capture exciting opportunities across our markets and deliver on our medium-term objectives to sustain growth, create shared value for communities, and unlock value for stakeholders,” Mupita added.

The Nigerian economy has been grappling with chronic dollar shortages, leading to a devaluation of the naira as part of government efforts to stabilize the currency and attract investment. High inflation and interest rates have further raised costs, contributing to MTN Nigeria’s pretax loss widening over 200% to 550.3 billion naira ($355.76 million).

Meanwhile, in Sudan, MTN’s operations and financial performance were severely impacted by ongoing armed conflicts, according to Mupita.

The MTN Group, which serves 291 million customers across 16 African markets, saw a 15% decline in its group service revenue, totaling 177.8 billion rand ($9.78 billion). However, in constant currency terms, group service revenue rose by 14%.

Despite these challenges, MTN declared a final dividend of 345 cents per share, an increase from the previous 330 cents, buoyed by positive second-half financial results. Notable highlights from the report include:

1. Strong second-half financial performance, with improvements in service revenue, earnings, cash flow, and leverage.
2. A 14% increase in service revenue in constant-currency terms, though down 15% in reported rand terms.
3. MTN Nigeria’s service revenue up by 35.6%, with expectations for further growth in 2025 after tariff adjustments.
4. MTN South Africa service revenue up by 3.1%, with solid EBITDA margins of 37.4%.
5. A 28.5% increase in fintech service revenue, with a 35% rise in transaction value to $321 billion in constant currency.
6. A 52% increase in advanced fintech services revenue, including banking tech, remittances, and payments.
7. A reaffirmation of the group’s medium-term guidance, starting 2025 on strong footing.
8. An anticipated minimum ordinary dividend of 370cps for the 2025 financial year.
9. Enhanced local ownership in Ghana and Uganda operations and continued progress on transformation through the MTN Zakhele Futhi initiative in South Africa.
10. The group’s focus on sustainability, including reductions in emissions and expanding broadband access to 93% of the population in its markets.

MTN Group is also making strides in promoting digital and financial inclusion, particularly in rural and remote areas across Africa, as part of its ongoing commitment to transformation and creating shared value.