Inflation, currency volatility impact MTN Group revenue

Inflation and volatile local currencies in key markets were some of the biggest challenges MTN Group had to grapple with in 2023.

The telecoms provider announced headline earnings per share of 315c per share , down 72.3% from a restated R11.37 a year earlier, while adjusted HEPS fell 9.5% to 1 203cps for the financial year. Mupita stresses that the company noted a peak in the inflation cycle in some of its markets, such as South Africa, Ghana and Uganda.Compounding the effects of inflation, local currencies were volatile, with limited availability of hard currency, especially in Nigeria, says the CEO.He explains that in 2023, the US dollar appreciated by 97% against the naira, resulting in a closing rate of N907/$ at the end of the year .

“Amid sustained high demand for data and fintech services, we increased the number of active data subscribers by more than 9% to 150 million – half the total subscriber base.” Group service revenue grew by 13.5% to R210.1 billion and earnings before interest, taxes, depreciation and amortisation was up by 9.8% to R90.5 billion.

“We also gained traction with the structural separation of the fibre business in 2023, with Bayobab, securing regulatory clearances and new fibre operating licences in markets like Uganda, Côte d’Ivoire and Central African Republic.”

Ralph Mupita Naira Inflation MTN Nigeria MTN South Africa Momo Mobile-Money Fintech Bayobab.

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