South Africa becomes MTN’s biggest market as Nigeria revenue, earnings decline

At a Glance

• MTN South Africa overtakes Nigeria as the top market after Nigeria’s revenue plunge.
• Naira devaluation, inflation, and regulations weigh on MTN Nigeria, leading to sharp losses.
• MTN gains 291 million subscribers and raises its dividend despite financial setbacks.

MTN Group, Africa’s largest mobile network operator, has seen its South African business surpass Nigeria as its top market following a steep revenue decline in Nigeria.

The shift highlights the economic and regulatory pressures hampering telecom operations in Africa’s most populous country.

MTN South Africa grows, Nigeria declines

MTN South Africa’s revenue grew to R52.6 billion ($2.9 billion) in 2024, up from R51.8 billion ($2.8 billion) in 2023, while earnings before interest, taxation, depreciation, and amortization (EBITDA) rose to R19.6 billion ($1.08 billion).

In contrast, revenue from MTN Nigeria plunged to R41.04 billion ($2.25 billion) from R74.27 billion ($4.08 billion), with EBITDA nearly halving to R16 billion ($880.2 million).

MTN struggles amid naira devaluation

The downturn in Nigeria reflects the country’s economic challenges, including a sharp naira devaluation, soaring inflation, and regulatory hurdles.

MTN also struggled in Afghanistan and Sudan, where revenue dropped significantly due to political instability.

These setbacks contributed to an overall net loss of R11.2 billion ($615.52 million) for MTN in 2024, reversing a R4.02 billion profit recorded the previous year.

The company attributed the loss to foreign exchange pressures, asset impairments, and operational disruptions in conflict zones.

MTN gains subscribers, plans higher dividend

Despite the financial strain, MTN maintained its market leadership in Africa, closing the year with over 290 million subscribers.

The company remains committed to shareholder returns, declaring a dividend of R3.45 ($0.19) per share, up from R3.3 ($0.18) in 2023.

It also reaffirmed plans to raise the minimum dividend to R3.7 ($0.20) in 2025, signaling confidence in its long-term strategy.