MTN has announced an increase in its dividend for 2024, despite reporting a significant drop in earnings and facing major financial challenges. The telecom giant faced a 15.4% decline in reported service revenue, down to R177.8 billion, largely due to currency depreciation and an R11.7 billion impairment in conflict-affected Sudan. As a result, MTN reported a net loss of R11.2 billion, marking a sharp contrast from the R4 billion profit recorded the previous year. Basic earnings per share fell by over 100% to a loss of R5.31. However, headline earnings per share stood at 98c — a 68.9% drop — while the dividend rose 4.5% to R3.45 per share, exceeding initial forecasts.
Despite these challenges, MTN remains optimistic. The company has projected a minimum dividend of R3.70 per share for 2025, reflecting confidence in its cash generation and stable balance sheet. CEO Ralph Mupita cited improved economic conditions in key markets like Nigeria, where recent tariff hikes are expected to boost revenue. Additionally, Sudan has shown signs of recovery in some regions, enabling MTN to restore service to previously affected sites.
MTN’s South African operation also showed positive growth, with a 6.4% increase in subscribers to 39.8 million. While service revenue climbed 3.1% and fintech revenue soared 46.8%, outgoing voice revenue dropped by 5.5%. Postpaid services performed well, while prepaid services are still facing challenges, prompting MTN to implement strategies to regain momentum. Mupita also highlighted the improved resilience of MTN’s network during power outages, which has strengthened service delivery. Looking ahead, the company is cautiously optimistic about the impact of VAT increases but welcomes the removal of excise duties on smartphones priced below R2,500, which is expected to enhance digital access for low-income consumers.